As with most topics, the discussion around having the right mindset in business is important. However, for some it is not clear what this is and why you should be aware of which mindset to employ at a given time. Firstly, l will define what growth mindset and fixed mindset are.
Once we understand these two big mindsets, I will look at a relatable example of each scenario in a business context. This will allow you can apply it to your situation so that you can follow along. Furthermore, l will list the traits that are common with each belief process and conclude by looking at what it means to you as a business person.
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What is growth mindset?
A growth mindset involves continuous effort, learning, and improving. It is all about endurance when the going gets tough. Turning failure into practical useful data. It’s the underlying belief that ‘recognizes that ideas and abilities can be developed.
Dr. Carol Dweck, a Stanford University professor who is widely known for her work in this field defines a growth mindset as the “belief that your basic qualities are the things you cultivated through your effort“.
What is a fixed mindset?
On the flip side, she defines fixed mindset as, “believing that your qualities are imprinted in stone”. A belief that talent alone is responsible for success. Therefore, no effort is required from an individual as abilities are fixed and cannot be developed or changed.
So now that we understand the major differences in these two types of thinking. What does this mean for you as a business person? What role does mindset play in your business and how does it shape your performance?
Our minds play a powerful role in what we believe and how we think. Let’s look at some possible real-life business scenarios so that we have a better understanding of how this applies to you.
Business Case Study
Anna runs a successful small local beauty and nail shop. She has been in business for almost a decade. Her business operational approach is old school because that’s what has worked well for her in the past. Most of her clients are from word-of-mouth referrals and off-the-street walk-ins as the business are located in the main shopping village.
The business revenue has been stable for a few years. However, it has seen a steady decline this year because of the economic downturn experienced by most businesses in 2020.
- She has good people skills. This allows her to build a reputable name amongst the locals.
- A great communicator which makes visiting her shop a delight to most of her clients.
- Multi tasker and is a hard worker
- Good work ethics
- Values customer satisfaction
- She finds modern marketing methods a challenge especially the use of technology, computer programs and popular social media platforms.
- In general, it’s difficult for her to adjust and keep up with the fast paced digital world. However, most of her clients have recently expressed their great appreciation for the growing and popular online shopping trend.
An example of growth mindset in business
Anna is aware of the consequences of the shifting in shopping trends. The growing online trend has a negative impact in the current and future growth of her shop because clients favor flexible services.
As a result, she is witnessing a steady decline in overall customer numbers, especially this year. Traffic to her shop continues to drop whilst similar competitors with an online presence are flourishing because they are in a better position to meet their customers’ needs.
Therefore, she does not allow her weaknesses to stop her from venturing into the online space. She makes a decision to have an online version of her business. This will increase its market reach and allow it to become more competitive.
Above all, she understands that mindset is everything. Due to the current market shift having an online presence is of great advantage now more than ever due to Covid-19 and beyond.
Anna has a growth mindset because she believes that she has the ability to learn digital marketing to grow the business. She understands that it is a skill that a person develops. Her perspective is that you do not understand it as yet but with enough practice, patience, and effort you will master the skill.
To succeed she proceeds to source necessary training to get her business into the digital world. In order to expand your beauty empire.
An example of fixed mindset in business
Now let’s determine what a business person with a fixed mindset will resemble. Using the example above of local brick and mortar beauty business owners as our guide.
She has a fixed mindset if she believes that her business can’t have a presence within the growing digital space. If Anna thinks that this strategy goes against what she deems right because of her old school thinking. Furthermore, innovation and continuous growth are not achievable when you have no tech know-how.
Secondly, if Anna believes that her business should only be carried out the way it has always been done. As she doesn’t have the necessary abilities to learn a new skill.
This is because she has underlying thoughts which make her believe that upgrading her technological skill is meant for certain people but not her.
Thus, implementing digital marketing is not something that her business can achieve. Sticking to what she knows is the only feasible thing for her at the moment.
After all, her loyal clientele value the face-to-face service the business offers. Consequently, she stays in her own comfort zone, refuses to shift her perspective and thinking.
A challenge Only Becomes an obstacle when you bow down to it….. Ray davisTweet
Traits of people with growth mindset
They have some of the following traits;
- Welcome, accept and like challenges – (view challenges as an opportunity for self-improvement)
- They embrace change – (try different learning tactics and strategies)
- Always looks for opportunities – (reflect on your learning regularly)
- Think everything is possible – as the great Napoleon Hill summed it up well “Our only limitations are those we set up in our own minds”
- Treasure feedback and can learn eagerly – (effort is required to build new skills)
- Enjoy exploring new subjects – (find inspiration in others)
- View failure as an opportunity to learn – (perseverance in the face of failure)
- Are curious and commit to lifelong learning – (adopt a child like attitude, ask questions and seek answers)
Our only limitations are those we set up in our own mindsTweet
Some of the traits of people with fixed mindset
They have some of the following traits;
- Avoid challenges
- Dislike change
- Only focus on limitations
- Think they can do little to change the situation
- Don’t accept criticism
- Stay in their comfort zones
- Think efforts are not necessary sometimes
- Believe they don’t need to learn much after finishing school
Infographic – Growth Mindset versus Fixed Mindset
Bring it all together
To sum it up, harnessing the power of your mind is the most important step you can take towards building your wealth. Therefore, developing a pro-growth mindset will set you up for greater opportunities. After all, learning is a continuous and never-ending process.
On the other hand, a fixed mindset offers constraints and limitations that will affect your ability to achieve certain milestones. It fosters thinking that does not encourage nor cultivate a culture of ongoing learning or improvement. It assumes that understanding and abilities are relatively fixed.
The business and property investment world is dynamic. It requires you to have an agile mindset. Which can readily adjust to situations as need be. It’s clear that adopting a growth mindset in business and wealth accumulation through property investment will positively re-shape your thinking so that you can achieve your desired success.
What sort of mindset do you have? Please share your thoughts in the comment section below. I learn much from you as you do from me. Till next time – stay curious.