Beliefs, attitudes and actions shape all aspects of a business – regardless of its form. A company culture that fosters and develops a strong growth mindset will see an enormous difference to its strategic success. Teams composed of analytical individuals with collaborative approaches will find it easier to execute their plans successfully.
Negative thoughts will only serve to limit you, while positive thinking will open doors of possibility. What concrete steps can you take to improve and change how your business operates? Being profitable as a business owner begins with changing the way you think.
Read our practical tips for shifting your mindset, to help propel business growth.
What is a growth mindset?
A growth mindset is the conviction that skills and abilities can be learned and developed over time, creating greater success when a healthy mix of risk is undertaken, collaboration is fostered between peers, and continuous learning is pursued. Entrepreneurs with this attitude tend to achieve more when willing to take risks, collaborate on projects together, and pursue ongoing education in the pursuit of growth.
A growth mindset develops adaptability and resilience, while encouraging an openness to change. A fixed mindset views skills as inherent and unchangeable, resulting in fear of failure and unwillingness to take risks.
Why mindset matters
It is common sense that confidence comes from ability. Your employees look to you for direction, leadership and decision-making. Your actions have an effect on their team as a whole – and may determine the profitability of your company. So it’s important to develop a healthy mindset that can positively affect the employees in your company.
Consider this:
Many businesses take a defensive stance during difficult economic conditions, reducing growth ambitions and prioritising short-term revenues over long-term profits. Businesses adopting this attitude rationalise their decisions as 'playing it safe' when, in reality, their decisions are made out of fear.
Positive people tend to invest more in growth. Businesses run by positive individuals will often emerge stronger from tough times.
How growth mindset differs from fixed mindset
Fixed-minded individuals believe their abilities are innate and cannot be altered. They believe their skills, and the skills of others, come naturally to them.
Growth-minded people believe their abilities can improve over time. They understand that being bad at something or not knowing how to do it temporarily is no cause for embarrassment or needing to prove your capabilities elsewhere. They view these circumstances as opportunities.
How to develop a growth mentality
An entrepreneurial growth mindset can bring great benefits to your business, with seemingly limitless potential outcomes. To foster such an outlook in yourself and your organisation, self-awareness is an essential first step. As is often the case when it comes to matters pertaining to the mind, success may be easier said than done.
Nurturing an attitude of growth is an invaluable asset. Business owners who adopt this mindset not only enhance their capabilities, but also position themselves more strongly for future business expansion in an ever-evolving marketplace.
Establishing a more resilient and assertive way of thinking doesn't happen overnight, but you can take steps towards it by focusing on these key components.
Take charge of your growth
Growth doesn't happen by chance; so take charge of it! In fact, learning alone cannot provide all of the answers when it comes to becoming smarter, better and more positive. There are multiple methods that can be employed in order to accelerate your growth outlook.
Make time for reflection, creating efficient processes, or meetings with your team about what they need to improve their own success – even 30 minutes a day dedicated to personal and company growth can make your business more lucrative.
Turn failure into opportunity
At times of economic stress, businesses tend to lower their goals. Instead of cutting goals back during these difficult times, aim higher than usual – you will accomplish greater things once you recognise it's okay to dream big.
Even if your goal is simply lowering prices to retain customers, your business will still be more profitable if the goal is positive rather than negative, for example with a focus on the number of customers you’re keeping, rather than those you’re losing.
As soon as you put these ideas into action, you'll begin to experience changes in your thinking and how people interact and respond to you. You may notice significant shifts both within yourself and how others perceive and treat you.
Know your fixed mindset traps
Understanding what an unfavourable mindset looks like is crucial to avoiding one. If you find yourself with thoughts that suggest your abilities won't ever change, such as “well, that's just me," when faced with flaws or weaknesses, or experiencing roadblocks that seem inevitable, be aware that you can change your business mindset. You can choose to become more adaptable, by recognising them as opportunities to learn instead.
Encourage persistence
A growth mindset is defined by perseverance. Being willing to push on even when times get difficult is at the core of a growth mentality and often results in individuals pushing through discomfort when confronted by challenges, rather than reacting defensively or giving in.
What next?
Every business will encounter challenging times at some point or another, so it is crucial that your thoughts reflect positive outcomes for the success of your organisation. By choosing to think positively, you can influence people and ultimately produce better tangible outcomes for your business.
An entrepreneurial growth mindset can be the cornerstone of business success, helping increase productivity, profitability and resilience. You can develop this perspective by taking more actions focused on outward expansion.
So set out with an entrepreneurial spirit to ensure profitability is preserved, and take note as new opportunities present themselves.
