What does a mentor come with?

Advisors are typically known to add value to a company; they come with vast business knowledge and great domain expertise and startup experience that can help an entrepreneur to avoid simple mistakes. Mentors also open the door to a large connection like – investors, customers, entrepreneurs and other major players in the startup eco system. Mentors also come with great industrial contacts that would make procurement of funds easier, solving equity or debt related issues.  They also come with massive reputation in the industry which automatically increases the credibility of the startup and the entrepreneur.

How much must the pay be?

There are many factors that depend on the payment of mentors. If expert advices are taken from consulting people, it might become a major cost but it needn’t necessarily help the company. Outsourced professionals and experts charge a bomb for a seating but it needn’t necessarily fetch any results. Based on the company’s value and net worth an entrepreneur can fix the ownership rights of the mentor. On an average scale, a startup entrepreneur can give away anything around 0.4 percent to 1.5 percent at an early stage for all the efforts put in by the mentor. During the later stages of the organization, the entrepreneur can pay 0.2 percent to 1 percent.

These figures can increase depending on the growth of the company and it can also depend on the mentors commitment and loyalty towards the company’s growth and development.