The 19 Business Owner Mindsets

Over a quarter of a century we have conducted over 20,000 meetings with business owners and their teams. This has given us a powerful understanding of the business owner mindset. 

Business owners are people, too. They have much in common with employees and non-workers alike. However, they have a unique set of issues that are not always understood.

Below are 19 mindsets that will allow you to be more effective whether you are a business owner or part of their team.

1.    Controlled Risk: Business owners are not truly the risk takers that everyone believes them to be. Business owners like to reduce risk whenever possible. They prefer certainty. They have also dealt with enough problems over time, both expected and unexpected, to want to deal with risk that they believe they can control or can reduce based on their actions. For example, investing in the stock market feels like rolling the dice when that is not accurate. However, business owners compare the stock market with investing in real estate where they will build a warehouse. For them, the warehouse feels like a sure bet that is controllable and familiar. When it comes to people and hiring employees, hiring a relative will definitely create problems, but it is the devil that they know rather than the unknown hire from outside.

2.    Quality of Service or Product: Many owners have a pride in the quality of what they do and how they do it. They may have worked for another company that did not do quality work. Owners, sometimes unfairly, believe that they are unique in the marketplace. While they will acknowledge a good competitor, they strive to get results and do a great job with their customers. The public perception that business owners are trying to “rip off” their customer is very unfair since owners understand that having a happy customer is necessary to short and long term success. 

3.    Wars on Many Fronts: Most business owners have more to do than is possible to handle at the moment. This is partly because of the environment and partly because of the many “wars” that have to be fought when running their business. There is always too much to do and too little time in which to do it. Having quality employees, suppliers and relationships that can help to prioritize the right items and at the right time is extraordinarily important. Having someone who also understands the whole picture is very valuable to the business owner. Someone who will advise, regardless of the consequences to themselves, with true objectivity is priceless to them. It is not always the knowledge of the situation that is valuable, but being able to ask great questions to help the owner “shake the box” and get the big rocks to the top.

4.    Independence: The majority of owners desire to do what they want to do. Early on, the business was the taskmaster and the owner was slave to its needs. However, over time owners want the business to serve their needs and allow them the flexibility and opportunity to invest time with their family, travel, and have a good quality of life. They do not mind returning temporarily to 18 hour days, but ultimately they desire to be independent of the business and to the have the business independent of them. There are a few control freak business owners who do not want the independence since they like the status being needed brings them; however, most of them are the exception to the rule.

5.    Lifestyle: Money is not a goal of a business. It is a by-product. We have a few clients that would actually pay to own a business because it is fun for them. These owners love the excitement, challenge and learning that goes along with owning a business. Because owning a business can be tough, it does create better people if handled correctly. This is true for the owner as well as for the family and employees of the business. Part of business owner’s lifestyle comes from money, but the money is only a result of a lifestyle where capital (human, spiritual and intellectual) is necessary to survive and thrive. This allows for money to become part of that result.

6.    Instinct: Owners use their “gut” in addition to a systematic reasoning process. Their experiences over time have resulted in what appears to be a different thought process, but on closer observation, it’s actually their “gut” that works very well in bringing it all together. They may have trouble verbalizing how “what” they do works, but they are very confident in sensing by instinct what is needed and then using it to get better results. At the same time, owners will resist change until they feel confident it is the right time to try “the new thing”. When they do agree to change, they go at it full force, sometimes to the exclusion of all else.

7.    Control:  Most owners have realized that there is little that they can actually control. Therefore, taking variables out of the equation and doing a great job at what they can control is the best way to achieve peace of mind. Non-owners sometimes take the stance that owners control a lot and so are able to make more things happen. Instead, we see that owners have a different mindset where they are willing to make things happen and take action; thus, making all the difference. In many cases, owners actually have more barriers to results than non-owners. The bottom line is that business owners are willing to live without a net and take risk that non-owners do not or will not want to take. Owners are willing to build a structure for others and live without structure themselves; while non-owners typically desire a structure in place for perceived stability and safety.

8.    Eliminate Obstacles: Most issues that an owner has to deal with require many things to line up for success. In some cases, the goals may take many years to accomplish.  For that reason, small victories and going in the right direction mean a great deal to an owner. They are looking for progress even though to the outside eye, this progress is not always visible. Owners are looking for people that realistically see obstacles and who can identify a number of ways to overcome those obstacles. They want people that take action. They want people that see opportunities inside of every difficulty and provide the best possibilities in order to create tactical results, strategic progress and improved capabilities.

9.    Can Do Attitude:  Owners believe they can do it. So far they have survived against the odds and fought a number of battles and won. This gives them a false sense of security as well as confidence to take the next step down a path that may be dangerous. Without this “can do” attitude and confidence, owners would not be able to move forward nor continue being who they are. They may take what looks like dumb or expensive actions, but if you look behind the tactic, you will see a strategic reason for what they did. It may also be that they were trying to spur someone else to action or convincing someone else to change their mindset at the right time.

10. Lack of Confidence:  While this may seem contradictory, many owners do not have as much confidence and certainty as it appears. The confidence and calm demeanor has been learned over time in order to protect themselves and to calm their teams. Being able to get behind the public face is important when dealing with business owners. This allows for us to see what their real fears and dreams actually are. Asking owners why they did something will give a person insight into how they see the world and the rules under which they operate. Many of the rules came from experience rather than textbooks or consultants. Helping owners understand their “recipe” is as important as helping them to know where and when to change the recipe.

11. Always Learning: Many owners put time and energy into situations and people that are difficult. They do that to learn, to help people and to remove major obstacles. Recently, I had a 71 year-old client say, “I wish I was 30 again!” He sees so much to be learned, and he wants to learn it. However, he is afraid that he does not have the time to do so. When working with owners, if you can provide them insight into affective, conative and cognitive issues, it will matter to them. Values and beliefs are very important to them and guide what they do and the decisions they make. 

12. Legacy:  Owners believe that what they leave behind is important. It may sometimes be about the money, but more often, it is about what experiences, teaching, beliefs, and capabilities they leave behind. Owners want the business to survive, and they look at the business a bit like a teenager on steroids that will never grow up. They see The Next Generation as the parents of the business “child” that will ensure it survives for employees and the community. They want their life to have meant something. Legacy is what ultimately drives their behavior.

13. Do Not Suffer Fools Gladly: Owners don’t mind mistakes being made as long as you learn from those mistakes and do not blame other people or circumstances. If you do not connect with owners quickly and deeply, many will just smile and quietly usher you to the door. You can then spend countless hours trying to get them to see you again, but your efforts will fail. This is mainly because owners have learned how to avoid contact if it’s unwanted. It is critical for you to ask questions in order understand the world as the business owner sees it rather than trying to explain your view of the world to the business owner. If they are giving you time, it is one of your most valuable opportunities. Figure out how to produce something with that time which will be of exceptional value for them. It may simply be getting them to talk so they can learn how smart you really are. 

14. Lonely: Because owning a business can be lonely, having someone to talk to with low risk helps owners understand themselves and their world more deeply. If you do not feel you are getting the real them (i.e. it is a very surface waste of time discussion), challenge them by asking, “This discussion seems to be very trivial. How can I really get to know you and understand what is important to you?”. If they do not open up, quickly get out of there and do not waste your time on surface stuff. On the other hand, if they are doing all the talking (perhaps because they are lonely or they are too insecure and trying to fill the void or are trying to keep you from selling), try to get it into a dialogue. If they do not get “having a dialogue”, don’t waste any more time on them.

15. Respect: Owners want you to disagree with them. However, when disagreeing, be respectful of what they have achieved. Especially today where there seems to be a negative tone to owning your own business, realize they have beaten the odds and achieved a great deal. Do disagree and challenge them, but do it with an understanding that there may be a lot happening with them that you do not know about. Like a duck that looks calm on the surface but is paddling frantically below the water line, many owners have hidden issues. Asking owners what other issues are on their mind can be critical to rounding out your view of their world.

16. Ignore Negatives or Problems: Limits on energy require that owners sometimes ignore certain issues. The most successful owners have ignored issues they believe are not relevant or that they cannot control. By focusing their energy on what can happen, business owners are able to make a great deal happen that would otherwise be impossible. Rather than waiting for “all of the stars to align”, owners will persistently and tenaciously work towards an objective. The best owners enjoy this journey and know how to leverage all tools to the cause and how to ignore anything that can’t be influenced or controlled.

17. Action and Results Based: Owners like to see thoughtful action. While results are best, most owners give high credit to those that work hard, learn from failure as well as success, and teach others. Action is critical. Ultimately business owners need to see results, but if progress is being made no matter how little while working hard and learning, you will be on good terms with them. Getting great sustainable results ends up being the icing on the cake.

18. Unreasonable: Due to variables a business owner must handle, they can, at times, become very difficult to work with. Owners can become emotional time bombs in terms of people as well as making erratic decisions on how they deal with situations. This is where a person’s willingness to take some hits from the owner, coach them back to sanity, and then nurse the owner back to emotional health may be needed. While time can fix some of this, helping owners learn how to prevent this type of situation is best. A quick recovery is second best. Owners need to learn how and when to vent. If it is with you, they must trust you. If they are unreasonable, after they settle down, share with them how you expect to be treated.

19. Know It All (or so much more than anyone else): Since owners have access to a lot of information, have a great deal of experience, and are where the buck stops, they do have a tendency to think they know best.  However, the best owners are open to ideas and opinions from others. The worst owners have a habit of denying the truth of something since it came from someone “who doesn’t own a business” or “has never been there”. Having a strong Board of Advisors as well as a strong Leadership Team is important to crack through the defenses of a business owner when needed. Sometimes owners simply need a good gut punch, and if done with respect, they will appreciate the wakeup call.

Remember, business owners are people too. However, there are some unique factors they respond to that causes a difference between them and non-business owners. Additionally, among owners there are differences. The above list describes some common mindsets among the majority of owners. Depending upon when and in what form the mindset is practiced, it can have a positive or negative outcome for the organization, the team and the owner. Regardless of the external behavior, it is important to understand what is on the inside and where it came from. Ultimately, business owners respond to the same needs and desires as others, but will use more focus, longer time frames, and more resources than others to achieve the goals.

For more information about business owners’ mindsets and our program for dealing with all of the opportunities and obstacles in owning and running a business, call Applied Vision Works, Inc. 800-786-4332 or email us at dhadley@appliedvisionworks.com.