Fixed Mindset vs. Growth Mindset: Differences and Benefits

Adopting a growth mindset can unlock your potential and enable you to overcome challenges to succeed as an entrepreneur. Explore the differences between fixed mindset vs. growth mindset, plus ways to change your perspective for success in life and business.

Exiting the perceived security of a regular paycheck and a predictable work routine at a corporate job to launch a business can be daunting. Only slightly more than half of businesses stay open past the five-year mark, according to data from the U.S. Bureau of Labor Statistics. The top reasons businesses fail are lack of business acumen, poor planning, customer retention, and financing challenges, according to Investopedia. Small business owners often find themselves handling day-to-day duties to keep their business afloat, instead of concentrating on strategic growth. Harnessing the right mindset can help set you up for success.

Fixed Mindset: A Limiting Attitude

A person with a fixed mindset believes their abilities, intelligence, and talents are static traits. They fear failure or judgment and avoid challenges, which can inhibit learning and growth. Many tend to believe that success results from inherent talent, rather than hard work and perseverance.

Having fixed mindset vs. growth mindset can be particularly detrimental for business owners for several reasons:

• Resistance to change: In a rapidly evolving market, adaptability is key. A fixed mindset can lead to resistance to change, making it difficult for a business to innovate or adjust to new trends, technologies, or customer needs. It can hamper growth and leave the business lagging behind competitors.

• Fear of failure: Fixed mindset vs. growth mindset often comes with a fear of failure, as individuals see their abilities as static and equate failure with a lack of inherent ability. Fear can prevent business owners from taking necessary risks, exploring new opportunities, or implementing initiatives that could drive their business forward.
• Poor resilience: Business owners with fixed mindset vs. growth mindset may need help to bounce back from setbacks or challenges because they view these as insurmountable obstacles rather than opportunities for learning and growth.
• Ineffective leadership: Leadership requires the ability to motivate, inspire, and develop others. A fixed mindset can lead to a leadership style that fails to encourage growth, innovation, and learning among team members, potentially creating a disengaged and underperforming workforce.
• Neglecting feedback: A fixed mindset can make business owners more likely to dismiss or ignore constructive criticism and feedback, viewing it as a personal attack rather than an opportunity to improve. Dismissing feedback can prevent the implementation of valuable insights that could enhance business operations, customer satisfaction, and product or service quality.

Growth Mindset: The Path to Potential

Individuals with a growth mindset believe they can develop their abilities and intelligence through dedication, hard work, and perseverance. A growth mindset thrives on challenge and sees failure as a springboard for growth.

Adopting a growth mindset offers numerous benefits, particularly as an entrepreneur. At least 23% of people who open a business were unhappy at their corporate job. Turning to business ownership to improve their outlook can be a first step to a new future. Approximately 73% of business owners are at least somewhat happy or very happy as entrepreneurs, according to Guidant Financial.

Yet, starting and running a business is fraught with challenges and setbacks. Having a growth mindset in business fosters resilience, empowering entrepreneurs to persevere through difficulties, maintain a positive outlook, and stay focused on their long-term goals despite temporary setbacks.

Learning enables growth-focused entrepreneurs to make more informed, strategic decisions. They consider a wide range of options, weigh the potential for development, and choose paths that offer the best growth opportunities. People with a growth mindset seek out new markets and expand their product lines to ensure the long-term sustainability and growth of the business.

The tech-savvy millennial generation is often touted for its growth mindset. Nearly16% of all business owners are millennial entrepreneurs, according to the Guidant Financial study sourced above.

Premium Service Brands: Cultivating Growth Mindsets

Franchising offers a turnkey business and a proven brand coupled with training and ongoing support. It can help give entrepreneurs a competitive edge by taking steps to foster a growth mindset. Premium Service Brands (PSB) is a leader in the home services franchise industry. We have nine brands on our roster, including 360° Painting, ProLift Garage Doors, The Grout Medic, and House Doctors. We recognize a growth mindset is crucial for personal development, business expansion, and overall success in our industry.

Here are five ways PSB encourages its franchisees to adopt and maintain a growth mindset:
 

1. Comprehensive training: We provide extensive training for new franchisees, covering all aspects of running a successful home services business. Beyond initial training, we offer continuous support and coaching to our franchisees through regular check-ins, and opportunities for further education through webinars, workshops, and conferences. By creating an environment of constant support, we encourage franchisees to tackle challenges head-on and continuously seek ways to improve their operations and customer service.
    
2. Franchise network: Our network of franchisees provides new owners with valuable resources to help them focus on growth. Through peer support groups, our franchise owners share best practices, tips, and valuable lessons with owners who are getting started.
    
3. Innovation and adaptation: We encourage our franchisees to be innovative and adapt to changing market conditions by adopting new technologies, exploring new service offerings, or implementing more efficient operational processes.
    
4. Awards: Our practice of recognizing franchisees for their hard work and highlighting success stories reinforces the value of setting ambitious goals, persevering through challenges, and continually striving for excellence.
    
5. Brand stacking: We allow our franchise owners to expand vertically. Brand stacking demonstrates our commitment to providing pathways for franchisees to expand their entrepreneurial ventures, diversify their service offerings, and ultimately build a larger portfolio

Join the PSB Franchise Family

At PSB, we believe in having fun, being healthy, and living well. We’re searching for entrepreneurs with a mindset for business success who share our commitment to customer service excellence and passion for their work. Get started to learn more about how PSB can help you develop an entrepreneurial mindset focused on growth.