How to Change Your Mindset for Business Growth

As a business owner, the journey to profitability starts with you. Your beliefs, ideas, attitudes and actions shape every part of your business, whether you’re a solo entrepreneur or leading a team. Negative thinking will always limit your potential while positive thinking will open up a world of opportunity. That’s why a positive attitude is critical to achieving sustainable business success.

What is a Growth Mindset?

A growth mindset believes that your abilities and intelligence can be cultivated over time, not fixed traits. This mindset encourages continuous learning, collaboration, and risk-taking. It acknowledges that failures are part of the journey, setbacks are inevitable, and persistence is a key part of moving forward.

Why Mindset Matters: Growth vs. Fixed Mindset

Your mindset affects your leadership, decision making and ultimately the profitability of your business. Making informed decisions based on data and insights is crucial for managing risks and seizing opportunities. During tough economic times many businesses go into defensive mode, focusing on short term gains over long term growth. This approach often justified as ‘playing it safe’ is actually driven by fear. Those with a growth mindset invest in growth and come out stronger from adversity.

James Ashford, VP of GoProposal, shared a great analogy on Sage’s Sound Advice podcast:

“Have you seen Forrest Gump? You know when they’re on the boat and the storm comes? And they choose to go into the storm? That boat was built for a storm. And your business has got to be built for a storm. If you’re retracting, recessing and cutting costs you’re essentially tying yourself to the rocks. And all those boats that tied themselves to the rocks got smashed. The only one that survived was the one that took the storm head on. That’s what we need to do—strengthen our boats and go for it.”

Recognizing the impact of your mindset means taking personal responsibility for your business’s outcomes. Whether your business is successful or struggles your mindset plays a big part.

Benefits of a Growth Mindset:

Adaptability: You’ll see challenges as opportunities to improve, push boundaries and adapt quickly to market changes.
Resilience: You’ll bounce back from setbacks, learn from failures and stay motivated.
Continuous Learning: You and your team will always be seeking new knowledge, skills and stay ahead of innovation.
Innovation: You’ll be open to new ideas, technologies, strategies and business models, compete with bigger entities.
Risk Management: You’ll be better equipped to assess potential risks and make data-driven decisions to mitigate them.

The Limitations of a Fixed Mindset

What is a Fixed Mindset?

A fixed mindset is the belief that your abilities, intelligence, and talents are static traits that cannot be changed. People with a fixed mindset often think they are either born with certain skills or they are not, and there’s little they can do to alter this. This way of thinking can be incredibly limiting, as it discourages the pursuit of new skills and knowledge. Instead of seeing challenges as opportunities to grow, those with a fixed mindset may view them as threats to their self-worth.

How a Fixed Mindset Can Hinder Business Growth

A fixed mindset can be a significant barrier to business growth. When you believe that your abilities are set in stone, you’re less likely to take risks or explore new ideas. This can stifle innovation and creativity, which are crucial for staying competitive in today’s fast-paced market. Additionally, a fixed mindset fosters a fear of failure, making it difficult to take the necessary steps to achieve your goals. This fear can lead to a lack of resilience, causing you to give up easily when faced with setbacks. In a business context, this can mean missed opportunities and stagnation.

Recognizing the Signs of a Fixed Mindset

Identifying a fixed mindset is the first step towards change. Common signs include:

A fear of failure that prevents you from taking risks.
A tendency to give up easily when faced with challenges.
A focus on proving yourself rather than improving yourself.
Blaming external circumstances for your failures instead of taking responsibility.
A reluctance to try new things or step out of your comfort zone.

Recognizing these signs can help you shift towards a more growth-oriented mindset, paving the way for greater business success.

How to Cultivate a Growth Mindset

While the benefits are clear, changing your mindset isn’t an overnight process. A fixed mindset believes that abilities are static and unchangeable, which can hinder growth. Here are practical steps to start evolving:

Prioritize Your Health

Your health is non-negotiable. Without it you can’t perform at your best or support your team. James Ashford says:

“The reason you don’t find time to focus on your health is because it hasn’t been prioritized. It needs to be number one. You need to be spending 30 minutes to an hour a day getting your body moving. It doesn’t have to be anything crazy. It can be as simple as going for a walk.”

Remember mental health is equally important:

Avoid excessive news consumption.
Schedule regular breaks.
Improve productivity to free up personal time.
Limit time with negative influences.
Set boundaries to protect work-life balance.
Practice gratitude and help others.
Use therapy, meditation and stress management techniques.

Take Control of Your Growth

Growth requires active effort. Engage in continuous learning through various mediums like audio books, YouTube, podcasts or courses. Reflect on your business, refine processes and meet with your team to get the best out of them. Spend at least 30 minutes a day on these activities for consistent progress.

Aim High—It’s OK to Fail

In tough times many lower their targets due to their fear of failure. However, there is no such thing as a purely ‘growth mindset’ or ‘fixed mindset’; individuals often navigate varying mindsets based on their contexts and experiences. Instead aim higher than usual. Even if you don’t hit your targets you’ll still do more than if you had set conservative targets. For example aiming to double your fees might seem unrealistic but even a 20% increase would be a big win.

Developing a Business Mindset

Key Components of a Business Mindset

Cultivating a business mindset is essential for achieving long-term success. Here are some key components to focus on:

Growth Mindset: You must truly believe that your abilities and intelligence can be developed through hard work and dedication. This mindset encourages continual learning and resilience.
Self-Discipline: The ability to regulate your behavior and stay focused on your goals is crucial. Self-discipline helps you maintain consistency and achieve your objectives.
Continual Learning: Commit to lifelong learning. Seek out new knowledge and experiences through books, courses, and personal interactions. This keeps you ahead of industry trends and innovations.
Informed Decision-Making: Make decisions based on data and thorough analysis. This reduces potential risks and increases the likelihood of success.
Personal Experience: Learn from your own experiences and apply those lessons to future challenges. This practical wisdom is invaluable and can make a huge difference.
Different Mindsets: Be adaptable and open to new perspectives and ideas. This flexibility allows you to navigate various business challenges effectively.
New Skills: Be willing to learn new things and adapt to changing circumstances. This keeps you relevant and competitive.
Managing Overwhelm: Develop strategies to manage stress and avoid feeling overwhelmed. This helps you stay focused and productive.
Stay Informed: Keep up with the latest research and findings in the field of business and entrepreneurship, such as those from Stanford University. This knowledge can provide new insights and strategies.
Think Like a Business Owner: Make decisions that are in the best interest of your business. Understand the needs and challenges of different businesses and adapt accordingly.

By focusing on these components, you can develop a robust business mindset that drives growth and success.

What to Do Next

Once you’ve started developing a growth mindset expand your focus:

Build a Productive Growth Culture: Embed growth and productivity into your company culture so your team can achieve more and find satisfaction in their work.
Activate Your Growth Strategy with Tech: Work with your team to plan and implement the tools that will deliver your growth ambitions.

Final Thoughts

Even successful businesses will face tough times. What matters most is your mindset. It drives your actions, influences your team and shapes your business’s future. Start with a growth mindset and watch as new opportunities emerge and your business grows towards greater profitability and success.