Due to the massive success enjoyed by iconic leaders like Steve Jobs, Warren Buffett and Mark Zuckerberg, many burgeoning entrepreneurs go into business believing that they have to bear the burden of getting the companies off the ground by themselves. In truth, all of those leaders had advisers helping them along their paths to prosperity. In today’s globalized hyper-connected marketplace, business owners need qualified money managers to help them achieve their goals. Here are three reasons why you need a money mentor:
They can help you delineate assets and liabilities
In a recent Entrepreneur column, “Rich Dad, Poor Dad” author Richard Kiyosaki outlined a critical lesson his “rich dad” taught him at a young age — how to delineate assets and liabilities. When starting and operating your business, you make a lot of acquisitions. Some of these purchases, like company cars and equipment, will depreciate. Others things, such property, will not. A money mentor can not only help you tell the difference between the two, but they will also help you understand how you can take advantage of your liabilities.
They have a superior network
Your ideal money mentor should be someone who operates or has operated successfully in your industry. As such, they’ll have experience and knowledge that will prove invaluable in charting your company’s future. They’ll also have cultivated a robust network of contacts and connections that will help you make the kind of deals that will allow your business to maximize your profitability and minimize your costs. Their reputation within the business community will also open doors for you that would otherwise be closed to you, doors that will lead to the type of deals that will make your company.
They can help you avoid pitfalls
Another attribute possessed by a money mentor is their ability to avoid making the mistakes they made in the past. They can help you understand the complexities of government regulations and tax liabilities. They can identify faults in your long-term strategy that members of your team won’t have the experience to see. They can help you create the kind of budget that will let you grow your business exponentially. They can provide you with the kind of sober, objective advice that no one else can. In essence, a good money mentor can unlock your potential and help you do what you do best, only better.
This article was written by Mario McKellop for Small Business Pulse