What is the difference between a mentor, an advisor, and a consultant?

First thing first - let's set expectations of different roles. This isn’t the sexiest of topics, but it is a very important one to get started. When you are seeking help for your startup, it is important that you are pursuing the correct role and skill set.?

You might ask, “I am a #Founder or #SmallBusiness Owner and think I want to get a #mentor, what can/should I expect from him or her? How will that role differ from an #advisor or a #consultant?” There is no one specific answer to those questions, but we will discuss a few of those differences in this first article in the Avoiding Common Issues in Startups series.?

Let’s start by saying that there can be a lot of overlap in these roles or people with these titles, so, don’t be surprised to see tasks that a person performs spanning two of these roles. E.g., an Advisor could also perform some activities as a mentor or activities that would typically be done by a consultant. Having said that, let’s talk about the roles….

Mentors

The thing that stands out to me the most is that mentors generally work on the assumption of altruism and don’t have anything to gain financially from the relationship. Many are motivated by giving back to the business community or entrepreneurial community.

A mentor typically spends, say, 1 to 3 hours per month on a startup in a high-level, strategic role, although mentors can provide guidance on specific tasks, when needed. Given the time constraints, mentors provide guidance, but don’t actually do the work, as a consultant likely would.

One example of a common mistake that I have seen several times recently is that a founder engages a mentor to develop some very specific metrics or KPIs for the startup, such as lifetime customer value or customer acquisition cost metrics. A mentor may provide guidance on how to get those very important metrics, but a mentor is not the right person to dig in and actually figure out those metrics for the startup. The founder, a team member, or a consultant are more appropriate to develop those metrics.?

A mentor is generally a long-term relationship, which spans more than a project or phase of a startup.?

If you are interested in getting a mentor, things to keep in mind about how a mentor evaluates prospective startups and founders to mentor. Mentors are looking for:

• Founders who appear genuinely open to feedback. If a founder appears defensive or dismissive of suggestions, the mentoring relationship is likely to be frustrating to the mentor and ultimately fail.?
• Founders who have done their homework on their idea or startup and there are no obvious gaps, regardless of which phase the startup is. E.g., if a startup is in incubate phase, but hasn’t done a thorough market analysis or financial model, the mentor may ask that be completed before taking on a mentor role. Doing something as detailed as a Financial Model is typically not feasible in the time available for the mentor. Said another way, the mentor may provide guidance on the Financial Model, but he or she is not likely going to do the model for the founder.?
• Startups in industries that are interesting to them.?
• Startups that need the help in functional areas or industries that the mentor has expertise.

Advisors

Advisors have domain expertise and help provide street credibility to the startup.?

Advisors are expected to have significant input into the startup at some phase, but may not be heavily involved throughout the startup. E.g., a medical doctor or nutritionist may be involved in a health food startup. You wouldn’t expect them to be involved much in the production phase, but you would expect them to be in developing the formula for the food product. Or, a SaaS (Software as a Service) CTO (Chief Technology Officer) may be involved in a SaaS startup during design and development, but probably aren’t going to be very involved in the Market Definition and Analysis phases.

And, don’t be surprised if a potential investor contacts your advisors to gauge their involvement. It is expected that the advisor can speak intelligently about the startup and has legitimately been involved in it. This is to keep startups honest and give investors confidence that the startup has a solid foundation and is receiving adequate guidance. So, just like a reference on a resume, if you list someone as an Advisor for your startup, make sure that he or she knows you consider him or her as a formal Advisor, their name is in the pitch deck, and potential investors may contact them. (You may laugh, but this happens!)

Finally, advisors may invest in the startup. That shows investors that the advisor is committed to the startup and has something to lose, if they don’t take their role seriously and dedicate time to it.?

Consultants?

Consultants are there to help you execute tasks, develop products or services, and actually do the work. While there may be some strategic level work completed by consultants, they typically serve in a role more as “doers” than “thinkers” in startups. They are engaged in project based activities with deadlines, rather than more of an as needed, support basis.?

Summary

In summary here are the general guidelines for what the roles do, but, again, there can be overlap.?

Mentor

• Role: Strategic
• Invest in the Business: No
• Time Commitment: 1 - 3 hours per month
• Length of Relationship: Long-term

Advisor

• Role: Strategic
• Invest in the Business: Possibly
• Time Commitment: Heavy for at least one phase of the startup
• Length of Relationship: Focused mostly on a few phases

Consultant

• Role: Tactical
• Invest in the Business: Possibly
• Time Commitment: Part-time or Full-time
• Length of Relationship: Short-term Project- or Task-Based

Hopefully, this has given you an idea of what to expect from each role, and it will help you engage the right person/skill set based on your startup’s needs.?

Please ask any questions in the Comment section below.

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