In this article we’re going to discuss both, so you can see which one you have and how to be more of an entrepreneur so that success increases effortlessly.
If you want to become a true entrepreneur, first you need to become a business owner with a business that makes you a lot of profit (money) without it needing all your time to make it.
Beyond the business ownership level entrepreneurship begins where leveraging through people is your whole mindset and way of life. This article is about the mindset needed to achieve that true “business owner” level.
Think of a mindset as being like you’re trapped in a six sided box.
We operate our business in the box trying to be successful at a higher level, by figuring out the shortcut to escape the box to reach the next size box or next trap to break through.
Unfortunately though, the instructions on escaping are on the outside of the box! Once you have escaped the limitations of your current level of success you can see the box you operated in, as you then enter another mindset level or box.
As a trainer of business owners, having been in the industry since 1997, we’ve met some extremely successful people in business. One of our clients from 1998 who was turning over $6 Million a year now turns over more than $40 Million with a net profit margin of 19% – i.e. a net profit of $7.6 Million.
We see the mindsets people operating their business at various levels and there isn’t just type of mindset, there are a bunch of them.
The only limitation for great success in business is within our own mind!
It’s important to realise successful outcomes at higher levels are the result of actions at higher levels. Actions are the result of focus and focus is the result of mindset.
Mindset is based on experiences and education from others on the specific subject. In order to become very successful, with say a business operating with 15% or greater net profit margin and you not working more than forty hours a week, this is the result of following the steps just mentioned.
In order to have this level of business success you need to first of all look at your mindset, then adopt a change of focus, which will allow you to take different actions which then create different outcomes and the success you desire.
Actions create outcomes and the definition of insanity is to take the same actions and ‘hope’ for a better outcome.
So let’s now begin our mindset exploration!
As a business owner you start out in business as an employee. As an employee you adopt a certain mindset. Commonly what happens is you excel in your work as an employee and over months or years you start to feel the entrepreneurial calling self- employment coming on. You feel you are worth more money than you are getting because of your technical skills, i.e. industry relevant skills.
You may be also feeling unappreciated by your boss who doesn’t feel the need to treat you better, give you more money and/or trust you with more responsibility. The result of all these are the reasons why you (or the vast majority of business owners) start up their own business.
This background of employee thinking is what you take with you as a mindset into self-employment or working for yourself. You feel because you are very good at your job (technical work) that means you will make a lot of money going into business doing that work.
This is BIG, false assumption.
Being good at your job has little to do with business success. So being good at your job (technical skills) doesn’t relate to how much you are paid as the owner of the business. There are many reasons why you won’t make big money in business even though you might be a technical genius.
As a business owner you need to know how to price all your products/services accurately (with a predetermined minimum gross margin to make sure you have a minimum net profit margin). Unfortunately as an employee you would rarely if ever know the basis of pricing from your previous boss. Rarely are employees taught by their boss how to price.
Did you know 90% of all SME businesses aren’t making a decent profit (i.e. over 10% net profit margin), so copying the prices of your old employer and thinking you have enough profit, or being cheaper than your previous boss can mean you make virtually no profit!
If you haven’t been taught a specific way of pricing using facts and figures are you assuming that pricing what you sell the same or lower than your previous employer means you will be making good profits? False assumption!
Pricing with a specific, minimum gross and net profit margin is critical when you start in business, or two years later you’ll be wondering why you still aren’t making much for yourself even though you’ve worked sixty five + hours a week for two years.
Price is a mindset that limits growth so look hard at your thinking and see if this applies to you.
Another mindset is one of an employees.
As you were probably not fully appreciated as an employee and felt unrewarded, maybe even made to feel dumb or unimportant, this can become your method of managing your own staff when you hire them. Not seeing the value staff is a mindset that prevents leverage of your own time as the business owner. Without leverage you will rarely make decent profit margins, no matter how high your turnover gets.
Business owners feel they can’t trust their staff to do the work they can do, so this lack of trust mindset prevents them from training their staff who come and go every few years. Staff don’t feel trusted, they feel unimportant, unappreciated and as a direct result leave. The business owner can believe this was going to happen anyway. They often think, ‘what happens if I train them and they leave?’
A far more important way of thinking is, ‘what happens if I don’t train my staff and they stay!’ This mindset is about leveraging your time. When you train your staff, send them to external courses, teach them everything you know, encourage them, allow them to learn and make small mistakes, then your staff become fellow team members where Together Everyone Achieves More.
The mindset of ‘lack of trust’ becomes a self-fulfilling prophecy created by the mindset.
Another mindset of business owners is to falsely believe being better technically will make them more money and bring in more customers. This is a very limiting mindset.
People skills are what will make you more money in business than technical skills. People skills are what give you the ability to persuade more customers to buy from you and not your competitors. It gives you the incredibly rare skill of being able to win more sales at higher prices too! This skill is so rare, yet this skill alone can make a massive difference to your net profit margin, ten times better than having great technical skills.
You can be the world’s best trades person, but won’t make as much money as the person who is the world’s best salesperson!
People skills are relevant because people are your customers, your suppliers and employees. The greater your people skills the better you get at selling, marketing, leadership, advertising, negotiating and much more. The greater your people skills the happier you get as the less people frustrate and annoy you, as they start to become very predictable, less annoying and more reliable.
Adopting a people orientated mindset will make you millions of dollars – it has for numerous clients over the last seventeen + years.
Another mindset is one towards marketing. Nearly everyone in business thinks it’s a necessary expense, not the best investment they will ever make with their own money.
If you don’t understand numbers you won’t understand the value of marketing. You can spend $1,000 and make $12,000 back where the profit from the sales pays for the marketing. The rest is pure profit! This is the reward for learning marketing but again the mindset of business owners is, ‘I don’t have time to learn marketing, I’m too busy’.
This mindset is one of the most limiting there is. Learning marketing yourself is one of the best strategies for success there is in business. Marketing includes understanding websites, copy-writing, selling, advertising, pricing, merchandising and much more.
Another mindset is the “too busy” mindset. This has to be the most common one of all.
Suppose you knew in three month’s time you were going to be so sick it was going to be impossible to go to work at all. That you would be so sick you couldn’t get out of bed or talk to any of your employees at all. You had zero communication for a period of two months.
What would you do now if you knew this was about to happen to you in three months time?
For the majority of businesses – the business would fail in that two month time frame because the business owner IS the business! It cannot operate without them being there every hour it operates let alone for two months without them.
This scenario brings up a few more mindsets; for example the business owner believes customers only want to deal with them and not any of their staff. This is a self-created situation because when business owners don’t ‘trust’ their staff, or feel they aren’t worth training because they might leave later, they don’t receive training.
So you see, as a result of what the business owner believes is true (for them); the staff can’t look after the customers, is simply because they’ve never been trained to.
Business owners rarely learn how to be better teachers as their mindset is not focused on being a teacher or leader or even to improve their people skills. As a result they find it hard to pass their knowledge onto employees and so they don’t, because of their lack of teaching skills not being seen to be important.
In our scenario, if you knew you wouldn’t be able to work at all, or communicate with anyone in your business in three month’s time for a two month time frame, what would you do differently now? Would you start to train your staff intensively working towards the deadline? Most people would reply with ‘yes’.
Here’s the interesting thing, you’re never too busy to free up your time in months to come, if you make it a priority to have lots more time. You always have time for what’s important in your business, no matter how busy you are. The reason why business owners are constantly saying, “I’m so busy” is because of their mindset and that’s it!
They don’t have a desire for more time, or they would change their focus to what would give them more time, training staff to do the work they currently do. Instead their lack of trust prevents them from freeing up their own time, so they perpetuate the problem instead of changing it permanently, forever, and for good.
It’s not impossible to free up 100% of your time so your business operates virtually without you, but it is if your mindset is one of skepticism.
The final mindset I will touch on is doubt.
Doubt is what business owners commonly have where they doubt anyone can help them in their business. They doubt anyone who says they can help them to overcome whatever challenges they have. This doubting mindset is what truly prevents their success, not that someone can’t help them.
Academy of Business Mastery Training creates phenomenal outcomes but not for doubters who can’t attend the training.
Great success is the proof of a way of doing something. There is proof you can make massive wealth through property (I’ve met dozens who have), yet people still doubt it. There is proof you can make massive wealth through shares and trading (again, I’ve met many who have) and there is overwhelming proof you can make massive profit and wealth through your own business by getting the education you never had on business management.
But not if your mindset is one of doubt, then it’s impossible… for you at least, but not for others who have a trust or faith or open-minded mindset! They can and do achieve incredible success because their mindset allows them to.
Mindsets are what hold people back and whatever level of success you have achieved in business, there’s always another level of mindset success. Adopt an open minded, trusting education orientated mindset and nothing will stop you achieving any level of success you desire!
Think about that, but be sure to act on it.
Subscribe to the 7 Steps of the Academy of Business Mastery Training to begin your entrepreneurial training – officially, with a great action. You have nothing to lose, but so much go gain.
(An entrepreneur would).