Small businesses are the engine of modern economies and in the United States alone, 99 percent of businesses are considered small. Owners play key roles in small businesses and in some cases, are the sole person that handles all aspects of the business. The multi roles that owners take on could be a mitigating factor in the 21% of small businesses that fail in the first two years of operations. Owning a small business can be a very satisfying and financially rewarding endeavor but there is a certain mindset that successful owners have. Starting and managing a business from the ground up is an uphill battle and the rigors of handling most if not all aspects of the business can take its toll on even the sturdiest of persons but identifying key straights and strengths can help current and future small business owners focus on developing the mindset needed to undertake business ownership.
Mental Agility and Flexibility in Thinking
The commonality between small business owners is that they are key and sometimes sole decision makers for anything related to the business or operations. That imparts a lot of responsibility as each choice or decision made by the owner can have great effect on profitability and the bottom line. Owners and leadership that have a degree of mental agility are better positioned for success . Some key traits that improve chances of success are:
- Ability to pivot quickly when change in necessary
- Open mindedness when it comes to new ideas related to the business
- Flexibility in beliefs when it can improve the business
- Capability of seeing things from different perspectives ie: the customer’s perspective
- Forward thinking abilities to identify roadblocks or opportunities early on
Mental agility is also driven by strong organizational habits that keep every aspect of the business in check. Owning a small business is not easy and the many hats the owners wear can cause attention deficits in certain areas but strong mental agility combined with defined organizational habits can keep the business moving forward.
Advanced Communication and Listening Abilities
In many instances, the owner of the small business is also the face of the small business and elite communication and listening skills are crucial to success. Upskilling areas such as tone control, pace and vocabulary can have positive effects on reputation, customer service and the bottom line. Owners who have preconceived beliefs will not do well connecting with other people and a certain degree of flexibility is essential when communicating. Master communicators can alter their style to better suit the other person, encouraging deeper connections and better understanding. Strong and effective communication with customers will result in higher performance and increases to the bottom line. Owners may also be tasked with managing people and high level communication skills are critical in getting the right messages across to teams and motivating them to higher levels of performance and accuracy. The other half of communication is active listening skills with the goal of full understanding as to what is being said. In fast paced environments, it is crucial never to interrupt the other person and allow them time to fully explain what is on their mind. This holds true for customers and employees and allows them to open up for discovery.
Strategic Disruption Skills
One of questions that small business owners should ask on a consistent basis is:
- How can I separate myself from my competition in my marketplace?
Small business owners should have a deep understanding and a high level of expertise in regards to the product or service being offered. That understanding extends to the marketplace as well. Savvy owners will fully analyze and understand the nuances of their specific market and build marketing strategies based on that. Taking that a step further, the term ‘disruption’ has become somewhat of a buzzword in the business world but the reality is that these ‘market disruptions’ have a cause and effect that can benefit businesses behind the disruption. Mentioned earlier, mental agility drives market agility and owners who are well versed in their industry can take things a step further and identify opportunities to ‘disrupt, or shake up the marketplace. One of the key advantages of small businesses is their size and ability to pivot quickly in the face of market or preference changes. Smaller size organizations can also identify those ‘disruptor’ opportunities and deploy resources quickly and more efficiently then bigger companies. Small businesses can essentially stay ahead of the game and dictate the direction through disruptor type initiatives.
The Bottom Line
Small business plays a crucial role in economic ecosystems but their success greatly depends on the efforts and abilities of owners. All aspects of the business from marketing to sales to day to day operations are handled by small business owners which can be taxing on a sole individual. A certain mindset is necessary for small business owners as consistently high effort and engagement is the only path to success. Identifying key traits can help current and new business owners fine tune their personalities and develop skills sets that are essential for the hard work and a successful mindset needed to start and build a successful and thriving small business.