The Growth Mindset 

The Growth Mindset - A Little Trivia

Did you know that 86.3% of small business owners make less than $100K in net income per year?

So the lionshare of small businesses are just that - VERY small businesses.

Let me share another piece of trivia - most of those businesses could be making upwards of 300% in more revenue (within a 6 month timeframe) IF they marketed their businesses correctly or in most cases at all.

I find that 9 out of 10 businesses I come across are still relying on word of mouth, their website does not rank for top keyword phrases their target market conducts AND they are NOT investing in very lucrative advertising opportunities such as Google Adwords and Facebook advertising.

More Trivia

According to data from the Bureau of Labor Statistics, approximately 20% of small businesses fail within the first year.

By the end of the second year, 30% of businesses will have failed.

By the end of the fifth year, about half will have failed.

And by the end of the decade, only 30% of businesses will remain — that's a 70% failure rate.

There are many reasons a business fails. However, the reason why 82% of them fail is due to cashflow issues.

So what's my point?

Many businesses fail because they don't have the mindset to succeed... the mindset to invest in their own business.

The mindset to truly take on the role they aspired to as an entrepreneur, which is a risk taker.

You have to market your business, grow it effectively, and this will increase your chances of survival.

Having a solid marketing strategy can increase your chance of great profitability and survival.

Surviving Pandemics and Economic Crisis' 

The world was a scary and uncertain place in 2020. People were told to stay home, which is great for safety but bad for business. If people can't go out of their homes they can't go out and purchase products and services.

If you own a business of any kind, it is important to understand there will always be pandemics, economic woes, wars and any other number of obstacles.

Their will always be obstacles to overcome. The landscape of business will continue to change. The way humans receive and communicate information will continue to change.

All these things impact your business and your profitability and when they change and you don't - your business suffers set backs.

You weaken. When you weaken, you can fail.

If you create a strong marketing strategy in your business not just when you need customers but one that is constant and consistent, this is how you will weather any storm.

I like to think of a great marketing strategy as roots deep in the ground under the tree...it's these roots that will keep your business safe from the wind of a storm because you are so deeply planted.

If you adapt to change quickly and learn about new marketing opportunities - perhaps even ahead of your competitors (which trust me is not that hard to do) you will stay in business and put solid roots in the ground that will save you from the wind of the storms.

When the pandemic first hit, it sent many businesses into a tailspin. Mainly out of fear because they didn't know what was going to happen.

If people don't go out and buy things many businesses suffer - bottom line. Whether that be due to a pandemic or an economic crisis.

Each year over 600,000 businesses close down on average just in a regular year. The first year of the pandemic an extra 200,000 businesses closed their doors for good.

The next thing I am about to say could piss off some folks but so be it.

Based on my career over the past 10 years here's one thing I know for sure...and I am not saying EVERYONE but in some or perhaps most cases of those 200,000 businesses that closed their doors, it was not because of the pandemic....not directly.

It was because the pandemic exposed their weakness and that is what caused their business to close.

If you don't have a good foundation, if you're not focused on growth and strength, if you're not putting roots in the ground your business could become week.

When faced with adversity (and at some point you WILL), you could potentially fail. 

Fixed or Growth Mindset?

I remember a few years ago a client of mine called to tell me he had experienced a "first" in his business.

He had his first $100K month!

He doesn't have some huge business - he has a small service-based handyman business. 

This great news caused me to have a HUGE epiphany!

If you have a group of people who run the same business model and have access to all the same resources will all of them have the same success?

What determines this success?

The answer is - the mindset of the individual business owner. Some will have growth mindsets while others have fixed mindsets. This is why you will have very mixed results despite the fact that every business owner has the same assets. Their brains are going to be different.

Fixed or Growth Mindset - The Dividing Factor 

The client of mine that celebrated his first $100K month was part of a chain of independently owned franchises. His location became the top  revenue producing.

It was after we started working together that one of the one of corporate owners made notice of my work with this location and requested a meeting with me.

I was hired to act as a marketing consultant and advisor to all the individual franchises.

In this role I consulted and mentored the franchise owners regarding internet marketing and the profitability aspect of their location overall.

Once I was given the franchise list complete with the revenue of each location it was pretty simple to see which locations were struggling and why.

The diversity of these franchise owners across the country from a mindset perspective was very interesting. 

How they accept and learn new information, adapt to modern marketing techniques, and operate in their businesses is very different across the country.

Let me say there are many factors that could weigh on how much revenue one location makes over another.

Demographics of a specific area plays a large role in the revenue opportunity of a local business.

But to answer the question, if you have a group of people who run the same business model and have access to all the same resources will all of them have the same success?

The answer is no and it has nothing to do with demographics.

It's all about their mindset. Their mindset determines where they fall in the profit hierarchy.

What Makes a $100K Month Possible for a Really Small Business?

Well, first of all a great marketing person! 😂😂😂

However, the real answer is a growth mindset.

The owner of the highest revenue producing location has a growth mindset. He understands what he has to do in order for his business to grow.

He understands he must always be ready for change in today’s world, he must be versatile, he must adapt to the ever-changing landscape of how the consumer communicates and buys.

How a Growth Mindset Helps a Business Owner to Succeed

A growth mindset can help business owners face adversity in their business by providing them with a more resilient and adaptable mindset.

Here are some ways a growth mindset can help:

1. Embracing challenges: Those with a growth mindset see challenges as opportunities for growth and learning, rather than obstacles to avoid. This can help them face adversity in their business with a more positive and proactive attitude.
   
   
2. Learning from mistakes: People with a growth mindset view mistakes as opportunities for learning and improvement. Instead of being discouraged by failure, they use it as a chance to analyze what went wrong and make changes for the future. (Here's a great example if they try something like Facebook advertising and it doesn't work out the way they planned instead of thinking that advertising doesn't work they instead could consider maybe they could have done it better or a different way.)
   
   
3. Seeking out feedback: A growth mindset involves being open to constructive feedback from others. They don't let ego or negativity stand in the way of hearing other ideas and learning.
   
   
4. Being flexible: Those with a growth mindset are more adaptable and understand change is inevitable. This can help them face adversity in their business by being open to new approaches and ideas.
   
   
5. Persevering through challenges: A growth mindset involves having a long-term strategy and a willingness to persevere through difficult times. This can help individuals in business stay motivated and focused on their goals, even when things get tough.
   
   

Overall, a growth mindset can help individuals in business to view challenges and setbacks as opportunities for growth and improvement, and to approach adversity with a more positive and proactive attitude.

Examples of a Growth VS A Fixed Mindset 

I want to provide an outline of each mindset so you can decide which one you mostly relate to. It's perfect normally to have traits of both however if you put a pen and paper to it, it will become very obvious which one you lean the most to.

A Fixed Mindset: A person with a fixed mindset typically believes their basic abilities, intelligence, talents, are fixed traits.

A person with a fixed mindset doesn’t typically like change, they aren’t very versatile and they don’t like being challenged. A fixed mindset person isn’t the ideal candidate for entrepreneurship. However, there are exceptions to this rule. I have had clients with fixed mindsets. There are struggles but they can have successful businesses.

A Growth Mindset: A person who understands their talents and abilities are not limited. Their abilities can be developed through effort, good teaching and persistence.

Also, the exact opposite of a fixed mindset they accept and are very adaptable to change. They thrive when being challenged. This person is the ideal candidate for entrepreneurship.

Here are some examples of fixed and growth mindsets:

Fixed Mindset: "I'm not good at sales. I'll never be able to increase my revenue."

Growth Mindset: "I may not be great at sales right now, but with practice and learning, I can improve and increase my revenue."

Fixed Mindset: "I've always done things this way. There's no point in changing my approach."

Growth Mindset: "I'm open to trying new approaches and experimenting to see what works best."

Fixed Mindset: "I don't have the education or experience to apply for that promotion."

Growth Mindset: "I may not have all the qualifications for that promotion, but I'm willing to learn and acquire the skills I need."

Fixed Mindset: "I made a mistake, but it's not my fault. It's just the way things are."

Growth Mindset: "I made a mistake, but I can learn from it and use that knowledge to improve."

Fixed Mindset: "I can't take on new challenges. It's too risky and I might fail."

Growth Mindset: "I'm willing to take on new challenges and take calculated risks to grow and learn."

Growth Mindset: There are Downsides

I am an entrepreneur with a growth mindset and I can surely tell you that even though I have an advantage, I certainly have my fair share of challenges.

The funny thing is even a growth mindset can have some downsides. I think it's only fair to explore it and be transparent.

Let me share with you my personal downsides as an entrepreneur with a growth mindset:

1. I am a recovering perfectionist. I am constantly questioning my work, if it's ready to go out into the world and if it's good enough. This has caused me so many setbacks and so much time and money.
   
   
2. I drive myself way too hard and I often get burned out as a growth mindset can lead to an overemphasis on effort and hard work.
   
   
3. I sometimes have very unrealistic work expectations and this has really hurt me when it comes to hiring employees. I find it hard to let people work for me because I don't think their work or effort is as good as mine. This leads to a lot of disappointment and frustration.
   
   
4. I sometimes ignore my own limitations. My growth mindset drives me to constantly improve however, we all have limits. Ignoring limitations can lead to unrealistic goals and potential failure. I have experienced this first hand.

Breaking the Mindset Barrier

Today’s world is changing so quickly. The way the consumer communicates and accepts information has drastically changed the landscape of business. Thus impacting the way you run, grow, and market your business. 

Those who are resistant to not only accepting this fact but also learning to adapt will grow at glacier pace in their business if at all.

Each one of the handyman franchises I mentioned in the previous section above all had access to the same resources and technology as any of the others yet the ones on the bottom of the profitability chain have not yet conformed and adapted. 

Yet, the franchise model having the owner with a growth mindset achieves a level of revenue in his business in one month that is not far off than what the lower producing ones do in an entire year. 

What is the barrier? The mindset. It’s everything. 

It’s the mentality to take chances and be versatile in a fast changing world.

But more importantly - the business owner who succeeds in creating a structured marketing plan and looking past a 30 or even 60 day mark will prosper. It's because they are looking at the big picture.

Most businesses struggle because they can’t seem to get to this point. They are stuck in wanting immediate gain instead of the understanding a profitable and sustainable business is built over time. 

You can't create a 6 or 7-figure business with a 5-figure mindset - it will never work.

You can say you want to create a 6-figure or even 7-figure (or more) business but if your mindset and actions equal a 5-figure business, you’ll never see change.

How To Create Change? What is the First Step?

Understand that small thinking brings small profits.

It’s essential to train yourself to create a long term strategy and look at the big picture in your business.

Always know your numbers inside and out. How much revenue did you bring in this month? How much revenue did you bring in this time last year? What products and services make up those numbers?

What areas are you weak at? Is your business missing valuable opportunities because it's not be found online?

Which are most successful? Most profitable? Which are dragging? 

What is the distance between where you are and where you want to be? 

To build a bridge between that distance you need a strategy - a plan. 

What does a new customer cost you? What is a customer worth to your business over 12 months? Or perhaps a lifetime? 

How large is the gap between where you are and where you want to be in your business? What fills that gap?

A marketing strategy that is combined with short-term gain and long-term growth.

Want a Further Education on Fixed and Growth Mindsets?

I want to suggest a great book I truly love and has a permanent space on the shelf in my office. The book is called Mindset: The New Psychology of Success by Carol S. Dweck, Ph.D..

About the book:

This best-selling book that has changed millions of lives with its insights into the growth mindset. 

“Through clever research studies and engaging writing, Dweck illuminates how our beliefs about our capabilities exert tremendous influence on how we learn and which paths we take in life.” (Bill Gates, GatesNotes)

After decades of research, world-renowned Stanford University psychologist Carol S. Dweck, PhD, discovered a simple but groundbreaking idea: the power of mindset. In this brilliant book, she shows how success in school, work, sports, the arts, and almost every area of human endeavor can be dramatically influenced by how we think about our talents and abilities.

People with a fixed mindset - those who believe that abilities are fixed - are less likely to flourish than those with a growth mindset - those who believe that abilities can be developed. Mindset reveals how great parents, teachers, managers, and athletes can put this idea to use to foster outstanding accomplishment.

In this edition, Dweck offers new insights into her now famous and broadly embraced concept. She introduces a phenomenon she calls false growth mindset and guides people toward adopting a deeper, truer growth mindset. She also expands the mindset concept beyond the individual, applying it to the cultures of groups and organizations.

With the right mindset, you can motivate those you lead, teach, and love - to transform their lives and your own.

Lesson Overview