3 WAYS FOR MENTEES TO GIVE BACK TO MENTORS-BUSINESS MENTORING

3 WAYS FOR MENTEES TO GIVE BACK TO MENTORS

A mentoring relationship should be rewarding for both sides. If only the mentee is getting something out of the relationship, chances are the mentor will soon opt out.

It's common for mentees to think that they have nothing to give back to their mentor. That simply isn't true. Though you might not be able to give back in a monetary way, the fact is most mentors aren't in it for the money.

So how can a mentee give back to a mentor?

==> Gratitude

At the simplest level, mentors want to feel good about the fact that they're making a difference in your life.

Let your mentor(s) know how they've made a difference in your life. Be specific. Let them know how your life would have turned out if it wasn't for them.

After every meeting with you, your mentors should walk away feeling like they did a great thing. This feeling is why many mentors give a helping hand.

==> Public Mentions

Another way you can give back to your mentors is through public mentions. As you and your company become more successful, you'll have the opportunity to speak in public or be written about in public.

When that happens, go out of your way to mention your mentor(s). This will help them build up their name and also gives them a sense that you truly do appreciate what they do for you.

If you read books by successful people, you'll find that they often acknowledge their mentors and influencers by name. They'll do this not just in the "acknowledgements," but in the core of the book itself.

Find places to mention your mentors in public and they'll love you for it.

==> Being Successful

Finally, the ultimate way to say "thank you" to a mentor is to be extraordinarily successful. Mentors want to know that they made a difference and that their contribution helped you hit your goals.

Mentors want to make a difference in the world. If you go from starting a brand new business to being a successful entrepreneur thanks to your mentors, they'll feel very fulfilled. They'll be glad they took you on.

==> Giving Back to Mentors

Though mentees usually can't give back to their mentors in financial ways, you'll often be able to give back to mentors in emotional ways.

Make sure mentors feel good about helping you out. Make sure they walk away from your meetings glowing. Make sure that they're better off having spent time with you than if they hadn't.

Don't view your mentorship relationships as you taking something from them. View it as a mutual relationship, where they want to make a difference and you're their conduit. They're making a difference in your life and your business and in return, they get a wide range of emotional benefits.

ARE STARTUP INCUBATORS RIGHT FOR YOU?

One unique form of mentorship that's open to entrepreneurs is incubators. Incubators combine traditional investing with a streamlined mentoring process to help take beginning entrepreneurs to a successful exit.

What is an incubator? Is incubator mentorship right for you? Let's take a look.

==> Incubator Basics

An incubator is a business coaching program run by a very successful former entrepreneur. Typically, the incubator will provide $10,000 to $30,000 in funding and take between a 2% and a 10% stake in the company.

Once you're in the incubator program, you'll have access to their facilities and network. You'll be able to work out of a shared office for free and take advantage of them in house legal and accounting services.

You'll start your company at the same time as an entire group of other entrepreneurs. This helps create a sense of team spirit, of taking on a big task together.

In addition to access to the primary mentor, you'll usually also have access to a whole range of other successful individuals. Incubators might bring in other successful entrepreneurs as mentors or speakers. They might also bring in alumni of the program to talk about their successes and give advice.

==> The Downsides to Working with an Incubator

There are a few downsides to working with an incubator that you need to be aware of.

First of all, they're very industry focused. The majority of incubators focus on the tech industry; though there are also incubators for green tech, biotech and industries.

Most incubators are looking for quick equity cash outs. That means that generally speaking, incubators want to help you build out your idea then have your company acquired for a large sum in a short period of time. If you're looking to build up your company for the long haul, going with an incubator might not be your best bet.

==> It's a Very Specific Business Model

Incubators work under a very specific business model. They fund a group of businesses, while expecting a good portion of them not to succeed. The ones that do succeed need to bring in enough revenues to cover the lost investments, as well as the overhead costs of the incubator itself.

If your business fits under the model that the incubator's looking for, then you'd be hard pressed to find a better mentorship structure. You'll have access to experts in every realm of business development, from incorporation and getting started to eventually selling your company.

If you don't want to sell or if you don't want to run a hyper-accelerated growth company however, then a startup accelerator might not be your cup of tea. Make sure you understand what you're getting into before you dive into the world of incubators.

BOARD MEMBERS & EQUITY MENTORS: WHAT PERCENT SHOULD YOU GIVE?

While some mentors will come and help you out for free, other mentors will be "paid." Usually for startup companies, these kinds of mentorship opportunities are compensated through equity rather than through cash, as most startups don't have all that much cash on hand. If you're working with such mentors, how much equity is a fair share?

==> It Depends on the Type of Business You Run

The type of business you run plays a large role in determining how much equity is a fair share.

If you run a small business, you're probably going to have to give away more equity than if you were operating a business with higher profit potential.

For example, if you want to get someone who owns 50 restaurants to advise you on how to open one restaurant, you'd probably have to give away a significant chunk - Say 5% to 10%.

On the other hand, if you're opening a restaurant chain yourself and are aiming for millions, you could probably give away less.

==> Baselines in a World Without Baselines

As a rule of thumb, board members in startup companies get 1% to 3%, depending on their level of experience and expected involvement in the company.

That said, there really isn't a set rule of thumb with these kinds of agreements. Some mentors will mentor you for free, while others will want 5% or more just to give advice.

It really comes down to what they believe the equity will be worth. If you're aiming to be the next Google and they believe you'll succeed, you may very well get away with less than 1%. On the other hand, if they expect their equity to be worth very little, they'll need more of it to be worth their time.

==> Vesting

Usually if you're going to give a mentor, advisor or board member equity in your business, you'll want to have those shares vest over time.

In other words, they should receive their portion of the company over a matter of years. Usually the time period is between three and five years.

That means in order to "earn" their 2% stake, they need to fulfill on their commitment to help take you to the next level over several years' time.

==> What About Free Mentors?

Are there mentors who'll simply give you advice for free? Absolutely. There are many, many people who'll help you simply out of a desire to give back.

That said however, it's unrealistic to hope that you can put together a core team of advisors simply out of good will. If you want to have advisors in all realms of your business, you're going to need an A team that has a vested interest in your business. Giving away equity is one of the best ways to do this... DOWNLOAD

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