The Game of Mindsets.

As a fellow entrepreneur, I know the entrepreneurial journey is always filled with twists, turns, and bumps in the road. And there are enough books, workshops, and podcasts flying around about finding the right keys, strategies, and skillsets to succeed in your venture and grow a business. No one approach fits all, different methods work for different people, and you will inevitably stumble upon contradicting advice. Among these, the most overlooked and underappreciated skillset is the Mind Set. 

Everything in life starts within your mind, then follows your actions. It’s our mindset that determines what steps we will take. To have a successful business, you need more than the essential business plan, product innovation, marketing strategy, and financial aids; you need the right entrepreneurial mindset. It is the single most crucial skill you need to accelerate and build your business.

The 80/20 Rule:

Peak Performance Strategist and Human Behaviour Expert Anthony Robbins suggests: “80 percent of success is due to psychology: mindset and only 20 percent is due to strategy—the specific steps needed to accomplish a result.”

Growth Mindset:

Traditionally a mindset is an established set of attitudes and beliefs. All successful entrepreneurs have a growth mindset rather than a fixed mindset. The growth mindset is essential for any entrepreneur. They believe in their abilities to learn, adapt, and grow. They see failure and mistakes as opportunities to improve. 

Fixed Mindset: 

How can I start a business? I am terrible at finance and accounts. I was always bad at it. I am not sure if I can do this!

Growth Mind-Set:

Finance and Accounting may not have been my strengths, but as I take on these tasks in my new business and with others’ help, I will learn and put my effort into becoming better at it!

Successful Entrepreneurs are comfortable with uncertainty and a certain level of discomfort. If they wait for certainty, they will only see what everyone else can see and miss the opportunities to get ahead of the game.

Have you heard that entrepreneurs who are ahead of their game follow the 40:70 principle? Collin Powell (Former head of US military forces and former secretary of state) has a rule of thumb that when making tough decisions, one should have no less than forty percent and no more than seventy percent of the information needed to make the decision. And when you can reach the sweet spot between 40% and 70%, then it’s up to your intuition to make the right decision. Most effective entrepreneurs are born because it’s not just about the facts but also the gut instinct.

Focused Mindset: 

Focused Entrepreneurs ruthlessly scan and eliminate distractions. The ability to directly focus on the task at hand, but time, energy, and attention towards their priorities are among the most valuable traits to develop. Every opportunity and activity has a cost. Is what you are dedicating your time to giving you optimal results? Clarity of your purpose and daily goals must come first. 

As Greg McKeown (Lessons from Essentialism) explains,

“You must purposefully, deliberately, and strategically eliminate the non-essentials. You must constantly be reducing, focusing, and simplifying. And it’s not just about getting rid of the obvious time wasters, but being willing to cut out terrific opportunities as well. Few appear to have the courage to live this principle, which may be why it differentiates successful people and organizations from the very successful ones.”

Entrepreneurs understand the consequences of focused decision making. They know the risks involved in delaying making a decision or a task. You can correct a wrong decision, but you cannot go back in time and reverse not making one. They focus on the opportunities, not the obstacles.

Optimistic Mindset: 

Even the most competent and lucky entrepreneurs experience failures, but their optimism facilitates them from bouncing back successfully. This does not mean they are naïve or unaware of difficulties; they positively approach setbacks and don’t fall into pessimistic mind traps. Adverse events are temporary situations to be overcome. They focus on solving the problem and moving on. Positive thinking encourages them to be more flexible and open to new ideas and outlooks.

Mental Habit of Warren Buffett:
One of the biggest reasons for Warren Buffett’s success was his relentless optimism. Just how optimistic becomes apparent in a data scientist’s analysis of Buffett’s letters to Berkshire Hathaway shareholders going back to 1977. Michael Toth, a data scientist at fintech company Orchard, decided to do a sentiment analysis of the letters, comparing the number of negative words such as “loss,” “difficult,” “bad,” and “risk” with the number of positive words, such as “gains,” “top,” “excellent,” and “advantage.” In the overwhelming majority of Buffett’s letters since 1977, positive words have outnumbered negative words, often by substantial numbers. In their foundation’s annual letter, Melinda Gates praises him for just this quality, writing: “Your success didn’t create your optimism; your optimism led to your success.