I recently discussed the value of having an abundance mindset, which got me thinking about how the mindsets we bring into our personal and professional lives shape our experiences.
So, over coffee, I asked a group of women how much they thought mindset impacted their businesses. Their answers ranged from 60% to 95%, which I found striking. And while those numbers are high, I fully agree.
Certainly, success in business involves planning, executing those plans, growing the business, and finding the right support. However, if your mindset isn’t aligned with your business goals, it can leave you feeling overwhelmed, lost, and chaotic—a mix that can spell disaster.
As I explored the concept of a business mindset, I realized it’s a broad topic—too much for just one article! So, this first piece will cover what a business mindset is and why it’s crucial. The second article in the series will discuss how to develop this essential mindset.
What is a Business Mindset?
A business mindset involves making decisions and handling situations from a business-focused perspective. It’s about understanding that your decisions should support the business’s goals, vision, and profitability. This mindset aligns closely with an entrepreneurial way of thinking and echoes Carol Dweck’s growth mindset approach. And the best part? It can be learned! (More on that in “How to Develop a Business Mindset.”)
What are the Key Components of a Business Mindset?
A business mindset can be a vital factor in a business’s success. Those with a business mindset understand their unique values and insights, and generally share seven key components.
1. Goal Orientation
People with a business mindset are highly focused on their goals. They have a clear vision of where they want their business to go and make strategic plans to get there.
2. Risk Management
A business mindset involves balancing and managing the business’s risks and rewards, while making the calculated decisions needed for sustainable growth.
3. Innovation
People with a business mindset are agile thinkers, open to new ideas and creative approaches. This innovative thinking gives businesses an edge, whether through new products, services, or ways of working.
Successful innovation isn’t just about coming up with ideas; it’s about implementing them. Each year, around September, I review our plans for the upcoming year with questions like:
– What’s our ‘business-as-usual’ plan for the year? (For us, this includes 1:1 Coaching and
Thriving Women programs.)
– What major new projects do I want to take on? I typically limit these to one per quarter,
such as launching a new website, diagnostic tool, or hosting a big event.
– Are there new programs I can create to fill a market gap?
My sister and Business Manager, Serena, plays a key role in making these ideas actionable, scheduling everything like a game of Tetris to make sure we stay on track. Having someone who understands you and your business is vital. Serena also leaves room in the schedule for me to develop new programs mid-year, so we remain relevant to our clients’ needs.
4. Resource Optimization
Those with a business mindset value resources and prioritize using them effectively—whether it’s time, money, talent, or other assets.
5. Resilience
Business often comes with setbacks and failures. A business mindset includes the resilience to handle these challenges, learn from them, and continue moving forward.
6. Customer Focus
A business mindset includes understanding and prioritizing customer needs. This focus helps build strong relationships and customer loyalty.
7. Continual Learning and Adaptability
The business world is always changing. A business mindset embraces ongoing learning and adaptation to stay current and competitive.
Operating Without a Business Mindset
There are many advantages to having a business mindset, but the challenges of operating without one are also clear.
– Lack of Direction: Without a business mindset, it’s easy to lack clear goals and a strategic
direction. Having a clear vision and a plan helps guide informed decisions and knowing
which opportunities to pursue or avoid.
– Increased Risk: A business mindset involves carefully weighing risks and rewards. Without
it, you may take uncalculated risks that lead to financial or operational setbacks.
– Stagnation: A business mindset encourages innovation and growth. Without it, your
business may become stagnant, and you might find yourself merely “treading water.”
– Inefficiency: Part of a business mindset is valuing resources and using them wisely. Without
it, resources may be wasted, leading to increased costs and lower profitability.
– Poor Customer Satisfaction: A business mindset keeps customers in focus. Ignoring
customer needs can result in losing them to competitors.
The Key to Business Success
Running a business without the right mindset may work for a time, but the risks are clear. The right mindset is a vital element of business success.
What’s Next?
Now that we’ve explored what a business mindset is and why it’s important, we’ll look at how to develop it. My next article will guide you through the steps to building a business mindset.