What is a money mentor...and why you need one...
A few weeks ago, one of my clients said that she doesn't think of me as just her business accountant. She said that I am her money mentor. That actually got me thinking, and doing some research on the money mentor concept. The more I read about money mentors, the more I agreed with my client. I am a money mentor and I think that every small business owner needs one...right now.
What is a money mentor?
Simply put, a money mentor is a business advisor that helps you make educated financial decisions for your small business. As a small business accountant, I tend to be a money mentor for the majority of my clients. I advise on cash flow, business expenditures and investments. But, a money mentor can be a trusted industry leader, financial expert or investment professional. Of course, I'm always going to recommend that you do your homework and not trust just anyone to help make you financial decisions for your business. Ask colleagues, friends and family if they have any money mentors in their life. Referrals are always a great place to start.
Why should you have a money mentor?
A money mentor can help explain some of the confusing financial or accounting concepts that you may encounter as you start and grow your business. They can explain your financial statements to you, what they mean and why they are so important to making solid decisions for your business.
The perfect money mentor should be someone who has worked in or around your industry for many years and have been successful. They will have invaluable knowledge of your industry that you can leverage to make better decisions for your business. They will also have many connections to contacts that can help you in other parts of your business, for example, the best CPAs, lawyers and more. This will save you valuable time and energy as you progress in your business.
A money mentor has travelled your road before and they can advise you on how to avoid problems or pitfalls in your business. They can help you make educated decisions for the long term health of your business. A money mentor will help you make budgets, so you can plan for the future and measure your success. Finally, they will be able to give you unbiased advice on how to be successful like no one else can.
So, if you are a small business owner, I highly recommend having a money mentor in your life. The partnership is one that I think will make you a more successful entrepreneur and also make you feel more comfortable with the financial health of your business. If you would like to talk to me more about the money mentor concept or how I can support you in this role, please contact me. I'd love to hear more about your business and how I can support you in making the best financial decisions to be successful in your industry.