There is a certain kind of mindset for continuously successful businesses. The most important mindset is understanding the difference between owning a business and being a business owner. Some may think that this is just semantics, a play on words, but the ones that toss this aside are the ones that own businesses, not real business owners.
Those that understand this difference are committed to growing their business, not only for themselves but also for their employees and their customers. And not every business owner is in the same place as all others. Business owners tend to move through various levels of thinking depending on where their business is in its lifecycle or in the owner’s lifecycle. And there are times as the business grows that the owner needs to move up or down in their level of thinking to keep it going based on market conditions and the overall business environment. The key is to never get stuck in the lowest level of thinking.
As owners of our businesses, it is important that we understand and embrace these different four levels of owner thinking. These four levels are worker owner, manager owner, developer owner, and leader owner.
It is important to note that not all owners will fit neatly into one of these categories, and that there may be overlap between the different levels.
However, understanding these levels can help us to better understand our own thinking and our approach to ownership, which can lead us to better identify areas for growth and development.
As mentioned before, there are times where you switch from one level to another. This can happen during on a given day, for a week, sometimes a month or longer. The key is to return to the Leader Owner level of thinking as soon as possible.
When you are beset with a problem, you need to be in the Leader Owner level. When you are there, you are best able to think out scenarios that look to the long game. As I have written in other articles, decision making is made easier when you truly know your core values and whether your decision flows from those values. If a solution shows itself but does not connect with your core values, it becomes easier to discard it and concentrate on those solutions that do.
Now that we have identified these four levels of owner thinking, and you understand that you can move from one level of thinking to the other depending on the situation, the next step is to figure out how you move up to the next level and continue to do most of your work there.
Your goal as the true business owner is always strive for Leader Owner Thinking.
There are a number of steps that any owner can take to expand their thinking. Let's start with a couple of things that are needed at all times.
First, you need to be a continuous learner. As indicated in a study by Eggers, Hagel, and Sanderson, "the skills college graduates acquire during college have an expected shelf life of only five years" and "the lessons learned in school can become outdated long before student loans are paid off.” And it doesn't matter what type of schooling, the same drop off occurs.
And as I wrote in my book Principles for Sustainable Success - "Being a continuous learner keeps you and your employees current with technology, standards, innovations, market conditions, business and marketing trends and customer struggles. As a continuous learner you are then ready to tackle any problem, situation, or crisis that appears."
Learning new technologies, techniques, processes, programs, stretches your mind, flexing the strongest muscle you have in your body. You can’t do it alone. Get everyone in your circle to learn new things. To a certain extent, it doesn’t matter what the subject is, when you learn new things, it changes your mental processes.
The second step is making sure that you have a growth mindset. This means that you are dedicating yourself and your organization to growth, growth of all kinds. When you do, you are able to embrace new challenges and opportunities. Instead of just selling more of the same stuff, what else could you sell that builds on your current sales but doesn’t tie you down to one particular customer or market?
Third, take CALCULATED risks. You took a risk when you left a 9-5 job to start your own business, but I am sure you thought a great deal about and figured out how best to start and then keep going. This is the same thing. When you look at an opportunity, make sure you are looking at all sides, positive and negative. At the same time, don’t get bogged down in endless analysis. Use the Jeff Bezos concept and learn to be comfortable with about 70% of the knowable information you can get on a decision.
You also want to surround yourself with people who support and challenge you and seek feedback and advice from those you respect. You don’t want yes men or women but at the same time you don’t want Negative Ned. Your circle must be filled with those that can think analytically but also pragmatically. They also must be willing to take calculated risks and have a growth mindset.
Lastly, focus on your long-term goals and your core values. Stick to them with every fiber of your being. They are the ones that will provide you with drive for success and keep you in the Leader Owner level of thinking. Going back to decision making, if the solution to a problem does not address your long-term goals or your core values, discard it. Sometimes, figuring out what to get rid of helps you with deciding on what is left.
It isn't easy being an owner, but you can make it easier for you by developing your thinking skills.
Understanding these levels, and how to move up the levels, can help us to better understand our own thinking and approach to ownership, and to identify areas for growth and development.