What Does a Business Mentor Do?

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What Does a Business Mentor Do?
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• If youve never talked to a business mentor then
  it may be hard to imagine the benefits of
  engaging one.
• When you first go into business for yourself, you
  may have found it a bit overwhelming with the
  large number of tasks that the role requires
  after the initial start-up phase. There are
  dozens of decisions to be made, such as
• Who to choose to build your business website
• What social media platform to use
• How to create content for posts
• Whether to have a blog and how to write a blog
  post
• What price point to use
• These are some of the first phase of business
  decisions to answer and all of them can determine
  how fast your business grows in the first year or
  two. If you have a great source of leads and
  sales then your business can grow much faster and
  thats probably the greatest challenge most
  businesses face.

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• After that early start-up and sales focused phase
  where the business gathers momentum and has the
  volume of sales to employee four or more
  employees at that time the business moves into
  the management phase where the owner can
  leverage themselves through the employees and not
  have to do everything themselves.
• In the management phase its a time to consider
  the benefits of a professional business mentor.
• A business mentor can assist the next dozen
  decisions that need to be made in the management
  phase. The common questions in the management
  phase include
• What to look for in choosing a dependable
  employee
• What marketing strategies can increase leads cost
  effectively
• Is the pricing points providing a high enough
  gross profit margin to cover overheads
• Is the net profit margin too low or about right
• What software does the business need for better
  management

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• In the management phase software is the major
  consideration so that you can manage your
  business better. Software choice is something
  most business mentors have experience with,
  especially if you have a service business mentor
  who has worked with hundreds of other service
  businesses.
• There are so many different software choices and
  choosing one can slow your business down in a
  year when you realise it was too simple and
  doesnt cater to your business needs.
• A business mentor can assist not only with
  software decisions but all of the above points
  and much more.
• The primary aim of a business is to increase net
  profit. This can be achieved by increasing sales
  income or by reducing costs of sales or by
  reducing expenses, or by increasing the volume of
  work carried out by employees by increasing their
  efficiency or by reducing the time taken to carry
  out tasks.

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• All businesses generate income, but not all
  businesses are very profitable. The more
  profitable a business is, the more its value
  increases and the more secure it is against
  failure.
• A business mentor can greatly assist with
  increasing the profitability of a business.
  Increasing profitability is an uncommon skill. If
  it was common a lot more businesses would be very
  profitable.
• A good business mentor will know the targets to
  aim for to operate at the very profitable mark.
  For a lot of businesses that figure is above 15
  Net Profit Margin.
• Many businesses struggle with low cash reserves
  and this is caused by two different reasons. The
  first is when money received from the sale comes
  after the work is completed, often 30 to 90 days
  later. This will cause cash challenges in the
  majority of businesses. Ideally, you want to be
  paid prior to carrying out any work related to
  the sale or before incurring any costs related to
  the sale. Unfortunately, most businesses dont
  have the luxury of being able to change when
  payment is received or how much of the payment is
  received. If you do have that choice then aim to
  obtain as much cash as possible the soonest you
  can.

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• The second reason for cash challenges is due to
  low profitability or the business having a low
  net profit margin.
• If the business has a 10 figure then only 10 of
  cash received from the sale stays in the bank
  account. The rest goes out due to Cost of Sales
  and overheads. This is a simple way of looking at
  it however it is a useful way of understanding
  cash.
• If the business has a 20 net profit margin then
  out of a 1,000 sale, 200 is still in the bank
  account after all costs and overheads are paid.
  Thats twice as much as would be the case with a
  10 net profit margin.
• A good business mentor will have a lot of
  experience with understanding finances and
  financial ratios to assist you in this complex
  area.

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• A professional business mentor can therefore
  usually pay for their fees with the increase in
  profitability of your business, and still
  increase your net profit after their costs.
• A business mentor can assist with how to
  implement systems, to clearly define roles of
  employees as your business grows, to assist with
  creation of an Org Chart, job descriptions, KPIs
  for roles and people and much more.
• Business mentoring is a fast growing industry due
  to the value it brings businesses. If youd like
  to grow your business faster and easier, or to
  increase your business profit margins then a
  business mentor is well worth considering.

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TIM STOKES
Business mentor Sydney Business mentor
Brisbane Profit Trans4mations Phone 1300 7
STEPS (1300 778 377) Phone [phone]
0477 https//www.profittrans4mations.com.au