This Is the Mindset You Need to Adopt to Unlock Your Business' Full Potential Crossing the bridge to business ownership and growing it both require a specific mindset — a growth mindset vs. a fixed one. Here's how to master it.
By Mohammad Farraj Edited by Kara McIntyre
Key Takeaways
- You have to have self-awareness and the willingness to change to truly unlock a growth mindset.
- If you want to grow, you'll have to make sure your mind is prepared for the flexibility it'll need when scaling a business.
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There are several steps in personal growth that go along with growing a successful business. From self-awareness to risk tolerance, many of the buzzwords in entrepreneurship actually come from popular psychology. Having a working knowledge of how an entrepreneurial mind processes information is a good start to figuring out whether — and how — starting a business is best for you. Perhaps the biggest step is going from being an employee at someone else's business, to deciding that you truly want to lead your own.
Crossing the bridge to business ownership requires an entrepreneurial, adaptable mindset. First, understand that you'll be going from a 9-5 mindset to one that is on 24/7, 365 days a year. It may feel overwhelming, but it's something every successful business leader cultivates. Second, you'll be going from following orders to leading other people, which requires another shift in perception. Third and most importantly: To grow a business, you need a growth mindset.
Related: 5 Reasons Why Personal Growth Also Boosts Business Achievement
Know yourself
Self-awareness is the most basic and essential attribute for an entrepreneur, which is why it's become a business buzzword. Surprisingly, a study reported in the Harvard Business Journal found that "even though most people believe they are self-aware, self-awareness is a truly rare quality," and estimate that only 10% to 15% of the people surveyed actually have the self-awareness necessary for a managerial position.
To gain self-awareness and determine a path to successful entrepreneurship, take an honest look in the mirror. What are your strengths and weaknesses? What motivates you? Looking inward leads to decision-making about whether being an employee is the best fit or if you have the core mindset to be an entrepreneur — and, for an entrepreneur, self-awareness is also the power for cultivating a great team.
Leaving the comfort of an organization to start a new venture requires overcoming fear, building fortitude and taking a leap of faith. Going from an employee mindset to an entrepreneurial one may be the biggest emotional jump — but it will be the first of many.
Related: Why Self-Reflection and Self-Awareness Are Vital Skills for Any Entrepreneur
Creating an adaptable mindset
Having an adaptable mindset is one of the key elements of creating and growing a business. What is an adaptable mindset? It's what the brain does behind the scenes to help us learn from mistakes and overcome setbacks to find solutions and move ahead, instead of accepting failure.
This resilience can't be underestimated in entrepreneurship. Not only does business survival depend on the ability to learn and overcome difficulties, but it allows a business owner to seek and leverage new opportunities.
There was a groundbreaking book on this very subject published in 2006 by psychologist Carol Dweck titled Mindset: The New Psychology of Success that explores the concept of growth and fixed mindsets, terms that the author coined. Examining brain processing activity, her team measured brain activity as students reviewed their mistakes on a test. They found some students had more brain activity, demonstrating a growth mindset, and others had none — a fixed mindset. She postulated that a fixed mindset prevents you from learning from mistakes, while a growth mindset can empower you to perceive mistakes as learning opportunities.
Is it possible to train oneself to create a growth mindset? Absolutely. It's a matter of transforming thinking from a one-size-fits-all to an adaptable mindset. Here are a few tips:
- Be human: Humans are flawed by nature. Accept imperfection in yourself and those around you and embrace the uniqueness that makes you, you.
- Be brave: Overcome fear by seeing new challenges as opportunities. Fear is a natural emotion, and having the ability to forge ahead with a can-do attitude will take you through many crises and allow you to operate in a high-pressure environment. Think of business as an adventure and achieving success as a climb along a rocky, winding trail to the mountain top.
- Be mindful: Give consideration to what you're thinking and saying. There's an old song recorded by crooner Johnny Mercer in 1944 titled Ac-Cent-Tchu-Ate the Positive that allows us to, as the lyrics go, "eliminate the negative," which holds true. Self-censor the negative thoughts in your head, and don't let them exit your mouth. The more you focus on the good, the less the bad will concern you and the results will be self-respect, ethical behavior and the ability to reach higher to achieve loftier goals.
- Be creative: If you can dream it, you can do it. Your brainstorm needs a clear vision about what it is, and the need it fills. Envision what success will look like and create a detailed business plan to achieve it. When we started our food truck business our goal was to offer amazing fresh Mexican food in a casual atmosphere. We knew that success for us would be an escalation to more trucks, then brick-and-mortar locations and finally a franchised business model.
- Be real and realistic: Take a deep dive into what you want to achieve in business. Is it fame or fortune? Is it a dollar amount? A number of locations? Goals are essential, but just as important is a realistic plan to reach any objective. Time, funding and knowledge each contribute to the capability to reach any goal.
Related: Success Is the Biggest Benefit of Being Adaptable
The need to know
Establishing an adaptable, growth mindset is a core element of entrepreneurship. But what you fill that same mind with is just as essential. Being familiar with the ins and outs of business and acquiring top leadership skills are the basics. Business knowledge will help to create a better employee environment provide a better chance of success in business, greater personal development, more adaptability and enhances communication skills in the workplace
One of the best places to begin when seeking financial literacy for starting a business is the U.S. Small Business Administration (SBA). This government organization is dedicated to bringing "financial literacy not only to America as a whole, but specifically to small businesses and future entrepreneurs." They offer a Money Smart for Small Business toolkit that provides an introduction to small business management topics.
Transforming from an employee to an employer, overcoming fear and gaining knowledge all contribute to developing a growth mindset. With adaptability and a positive outlook, anything is possible, especially business growth and success.
