Over the years, many studies have been conducted to help entrepreneurs find the best methods in which to build their businesses and accelerate growth. One of the most consistently successful methods is mentorship. This method is not only powerful but is an extremely effective strategy to employ within a company to avoid failure, increase workplace happiness, optimize recruitment, boost revenue, and attract investors to name only a few.
Mentorship is a two-way street. Being fully present and committing to the lessons learned are essential in a mentor-mentee relationship. Studies have shown that 30% of businesses without mentorship fail in one year and 50% will fail in five years. But how exactly can something as simple as mentorship help a business thrive? 70% of mentored businessesnot only succeed but thrive after over five years. Here are a few ways in which incorporating mentoring into a company can help it succeed.
When starting your business from the ground up, it can become easy to have tunnel vision and overlook critical opportunities that could take your business to the next level. A mentor can give an objective opinion based entirely in fact. Mentors should challenge the established norm and seek better ways for you to conduct your business. Remaining stagnant in an ever-changing work environment can be detrimental to your business and strategy.
Expanding Your Network
To grow a business, investors need to know your company exists and has merits that are deemed safe to invest their money in. A mentor brings in a new network of connections, such as contractors, clients, industry leaders, and investors, with them and can introduce you and other co-workers to highly useful professionals. The more business professionals you have in your circle, the more you can learn about a wide variety of aspects that may affect your business in the present or future.
Boosts Recruitment and Promotion Prospects
Companies that implement mentorship into their culture become much more desirable for potential employees. By giving employees the opportunity to increase their skills and potentially obtain a promotion to a position that will boost their careers, the company can increase workplace happiness and employee retention. A recent study showed mentoring increase pay raise prospects by 20% and promotions by five times the standard rate. Mentors are also more likely to receive promotions as well.
Increased Employee Confidence and Skillset
Mentoring can happen with any group or pair regardless of age or position within a company. Mentorship is often a learning experience and an opportunity to grow personally and professionally for all parties involved. Managers/leaderscan learn new skills and how to become a more effective communicator. Employees learn how to communicate their needs and ambitions and ultimately acquire new skills that are essential to their goals. Ongoing education and mentorship increase confidence, skills, and performance levels which can only have a positive impact on a company’s growth, especially in its formative years.
Due to the increased performance levels, workplace happiness, and newly enhanced skillsets of employees, companies often experience increased revenue as a direct result of incorporating mentorship into their culture. Analyses have shown that, on average, businesses increased their annual revenue by 83% when using mentorship hand-in-hand with their business strategy as opposed to 16% for those who did not.
Almost every startup and small business can massively benefit from mentorship in some shape or form throughout their growth process. Few companies succeed without this key tool, and as a result, more companies are incorporating this method to increase their competitiveness within their markets. Whether your company chooses to utilize this method frequently or on a yearly basis, the results and data clearly show your business will positively benefit from mentorship.
Originally published on AlvinHopeJohnson.net