Why Entrepreneurs Need "Mentors" and Startups Need "Advisors"

Many first-time entrepreneurs I've met seem to place a much higher emphasis on recruiting "advisors" than "mentors." I'm not sure why that is. However, a startup cannot succeed if the entrepreneur is not prepared for success, and that usually requires a one-to-one personal relationship with someone who has "walked a mile" in the entrepreneur's shoes.

If anything, the immense pressures on an entrepreneur (especially an entrepreneur/CEO) are so great that only someone who has gone through the same torture can empathize and share helpful insights.

So ... before I learn anything else about particular business ideas from first-time entrepreneurs, I usually ask them who their mentor is. If they don't have one, then I recommend that they find one ... immediately.

Why are mentors so important? Because they are resources you can turn to when it seems like you cannot turn to anyone directly involved with your venture.

Let me give you a personal story:

Going on 10 years ago, I co-founded a technology company in San Francisco. During the economic downturn in mid-2000, it was clear that we were going to have to take some drastic measures to keep the venture financially viable. At the time, I had a 3-person Board of Directors, a 9-person Advisory Board, an 8-person management team, and a 37-person staff ... oh, and a handful of professional advisors (e.g., lawyers, accountants, consultants, etc.). Collectively, we were all able to decide on a number of cost-cutting measures, including a serious lay-off. We even had HR consultants tell me exactly what procedures to follow to execute the reduction-in-force in the most efficient and effective manner.

So far, so good. However, what NO ADVISOR could prepare me for was how to personally cope with the feelings of guilt and failure that I felt when I let go a big chunk of our team. These were individuals who my co-founder and I had personally recruited. They had made career decisions and sacrifices based in part on their trust in my judgment and leadership. I had let them down. Worse, I had met all of their families, so when I looked into each of their faces as they walked out our doors for the last time, all I could see was their spouses and kids asking them what had happened and why they no longer had jobs.

And then ... from there I had to face the rest of the team. They were the ones that still had jobs, but now they were wondering when their turn would come. They were looking to me for strength, direction, and leadership, but all I wanted to do was go home and crawl into bed. Well, how does anyone prepare for something like THAT?

That's where mentors add value. Yes, startups need Advisors, who can help entrepreneurs shape the direction of the company, mold the business, and otherwise add value. However, entrepreneurs need mentors, who can help them deal with the stress that startup life puts on the entrepreneur's health, finances, and psyche, as well as her relationships with family, friends, and colleagues.

So ... if you're a first-time entrepreneur, please find yourself a mentor who has been an entrepreneur before. Believe me, you'll be glad you did!

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