Small businesses are considered the engine of any modern economy and in the US alone, small businesses created 55 percent of jobs between 2013 and 2023 (US Bureau of Labor Statistics). Many of these small businesses are sole proprietorships and in most cases, have only the owner handling the day to day operations. With the many hats and roles that small business owners wear, success can be dictated by the individual and owners that have the proper mindset and entrepreneurial drive are better positioned for success in a category with a high failure rate. Entrepreneurial drive simply refers to the individual’s level of enthusiasm for the business idea and the business itself and is a critical component as little to no support is usually the case for small business owners. Asking questions to oneself and how quickly and confidently the answers come is an excellent indicator of the level of entrepreneurial drive and can foreshadow what the short term future will look like for the owner.
Defining the Mindset
Having the appropriate mindset is essential for success for any business but this is especially true for small business owners. Mindset, as simply defined, refers to a set of attitudes and beliefs within an individual. These mindsets can have positive and negative effects and for small business owners, it is important to check those ‘attitudes’ and make adjustments when necessary. Focusing on certain attitudes can bring an individual into the ‘small business owner’ mindset:
- The Entrepreneurial Spirit – curiosity for ideas and their business relations is a core attitude
- Goal Oriented – Having set and achievable goals will build confidence
- Blinders – The ability to ignore and separate from distractions and negative inputs is essential to achieve goals and build the business
- Appreciate the Benefits of Working Solo – Most small businesses are run by an individual and it benefits the owners if they can work alone effectively and productively
Business specific mindsets are also critical for success and a firm belief in the product or service should provide the foundation for beliefs and attitudes that are needed to achieve set goals and milestones.
Understanding Merchant Mentality
Customer facing businesses have their own unique set of challenges when it comes to the owner mindset. Merchant Mentality is a way of thinking that approaches the business from the customer’s perspective or view. This perspective can include:
- The way the owners interacts with the customer
- The messages delivered by marketing elements
- The physical presentation of bricks and mortar locations
Merchant mentality is a mode within the overall small business owner mindset and can shape and adjust attitudes and beliefs for the betterment of the business. Taking a merchant mentality approach to the business can elevate customer experiences, potentially increasing transaction values and spending. Better customer service can also deliver external benefits through word of mouth marketing and increases to brand reputation.
A Skills and Habits Check In
There are specific traits that successful small business owners exhibit and taking a personal inventory of skills and habits can provide valuable insight and help improve and adjust one’s mindset to the right direction. At the core of essential skills is complete knowledge of the products and services being offered. Improving organizational habits will translate into better mindsets and more effective planning and strategizing for the business. Consistent application of positive elements is another habit that can increase chances of success. Small business owners will always benefit from advanced communication skills that can help translate visions and will positively impact customer experiences. Mental repetition is an excellent tool to stay focused on goals while blocking out negatively impacting distractions or other non-relevant hurdles.
The Bottom Line
Owning a small business is an uphill battle and maintaining consistent performance can be challenging for the individual but preparing mentally and emotionally for the journey can help favor success. Owners themselves face bigger challenges when going it alone and have to ensure that all aspects of the business are performing at a top level. From marketing to operations to customer service, these facets could literally be handled by one person and that can appear daunting to the unprepared individual. By addressing mindset and improving skills and organizational habits, small business owners give themselves a better chance of success in a category with a high failure rate. A laser focused mindset and a discipline to avoiding negative distractions are key factors that can help with success. Setting achievable goals and increasing performance within steps is how one can build confidence, a strength that every successful small business owner must have to win in a very competitive marketplace. With small businesses, it literally does start at the top, inside the owner’s head.
