Opinions expressed by Entrepreneur contributors are their own.
When you consider the various factors that contribute to your success as an entrepreneur, mindset may not be the first thing that comes to mind. Mindset may not seem important when transitioning from one task to the next, but it has a significant impact on how you run your business.
Successful entrepreneurs have a different mindset than everyone else and it influences the way they run their business.
Let’s look at seven mindset shifts you need to adopt as an entrepreneur and why each one is important.
Related: Why Mindset is Important for Success
1. Reframe error
Many people believe that failure is the opposite of success, but failure is actually a necessary step to success. Failure is part of every entrepreneur’s journey – Walt Disney, Steve Jobs and Arianna Huffington all experienced significant setbacks. What matters is how you react to failure and turn it into something positive.
View every setback as an opportunity to learn something new and practice resilience. Failure is often the catalyst for innovation – research shows that companies that encourage risk-taking and trying new ideas perform better in the market.
2. Think big
Successful entrepreneurs have big, ambitious goals for their business. The best way to achieve more is to aim higher and go beyond what you think is possible.
Most people get into entrepreneurship because they are naturally big thinkers. However, this mindset can easily be lost when you focus on the day-to-day operations of your business. In some ways, this is normal – your employees need to be paid and there are daily to-do lists that need to be completed.
But if you’re not careful, you may lose sight of your larger vision for your business. Thinking big helps you break out of that mindset and see opportunities you might have otherwise missed.
3. Take calculated risks
It is impossible to start a business or launch a product without taking on some degree of risk. Entrepreneurs therefore need to be good at taking calculated risks. When you take a calculated risk, you accept some chance of failure because it can potentially advance your business. It is an informed decision based on market data and not a random decision based on feelings.
The key is learning when it’s worth taking a risk and when it’s not. Start by developing a decision-making framework that will help you lay out the facts, evaluate your options, make a decision, and commit to following through.
4. Keep learning
The most successful entrepreneurs are known for continually learning. Bill Gates, for example, is known for being a voracious reader and regularly shares thoughts on his favorite books. When he goes on vacation, he spends about three hours a day reading and taking notes.
Continuous learning can take many different forms, such as reading, attending industry events, or taking courses. By expanding your knowledge and improving your skills, you will gain an edge over your competitors.
Related: 8 Mindset Changes Entrepreneurs Must Make to Achieve Their Ultimate Goal
5. Adopt a growth mindset
The term growth mindset refers to a person’s belief that their skills and abilities can be improved through effort. In comparison, those with a fixed mindset believe that their personality and abilities are fixed characteristics that don’t really change.
A growth mindset gives you the resilience to adapt and overcome challenging situations. It allows you to learn from mistakes and find the necessary resources to grow your business.
If you want to launch a new product, a growth mindset allows you to test and iterate your idea. Instead of viewing negative feedback or slow sales as a sign that you should give up, you can use this feedback to improve your product offering.
6. Focus on delivering value
Successful entrepreneurs focus on adding value rather than just making more money. This can be a challenging change in our mindset since we all need money to pay our bills and buy the things we want.
But when you focus on making money as the end goal, it’s easy to fall into myopia and make every decision based on maximizing immediate profits. If your customers don’t get value from your products or services, you won’t be able to build a sustainable business in the long term.
7. Ingenuity
When you start a business, time and money are almost always tight and unexpected problems arise. You have to learn to be resourceful and find creative solutions to problems.
Being resourceful also means being flexible and willing to adapt to an ever-changing environment. For example, the most resourceful entrepreneurs were able to pivot, adapt their business strategy, and identify new opportunities during the Covid-19 crisis.
Related: It’s All in Your Head: How to Change Your Mindset for Serious Success
Most people attribute entrepreneurial success to things like planning, innovative ideas and product-market fit. While these things are certainly important, it’s easy to overlook the importance of mindset when starting or growing a business.
Your mindset is important because it shapes your decisions and actions. By adopting the seven mindset shifts outlined in this article, you will set your business up for even greater success.