How A Change In Your Business Mindset Can Help You Find More Deals
Key Takeaways
- Business mindsets can be divided into two main categories: scarcity and abundance.
- An entrepreneur’s outlook on life can greatly influence their business practices.
- When setting business goals for 2018, investors should also reflect upon their attitudes toward resources and opportunities.
How does your business mindset affect your business?
It is a new year, and most likely you have reflected upon your failures and successes of 2017 in order to determine your business goals for the next 12 months. However, during the process, you may have forgotten to take a look at one of the most important factors that influence your investing career: your business mindset.
If you have read “The 7 Habits of Highly Effective People,” by Steven Covey, you may be familiar with the concepts of abundance mindset or the law of attraction. These concepts are based around the belief that an individual’s outlook on life will greatly affect the outcome of their business endeavors. Below, you will find an exploration of the scarcity mindset and the abundance mindset, two diverging groups in perspective, and how these two attitudes might affect a real estate investing business. Read on to find out which mindset you have, and how your thought process fits into your behavior in business.
Determining Your Business Mindset
The scarcity mindset is largely influenced by the idea that most situations in life are a zero-sum game, and that resources and success cannot be shared. The abundance mindset is based on the belief that opportunity can be created with effort, and that entrepreneurs can rely on each otherand share success. Which group of thought resonates more with you?
1. The Scarcity Mindset
According to Steven Covey, entrepreneurs with a “scarcity mindset” have a hard time believing that success can be shared, and feel that there are clear winners and losers in any type of situation. For example, they may have a difficult time sharing recognition or credit with others, or have difficulty being genuinely happy for the success of others.
How does one know if their business mindset is one of scarcity or one of abundance? First, there are several common traits associated with the scarcity mindset. In line with Steven Covey’s definition, individuals who tend to get jealous of others’ successes, or are envious of others’ possessions, may have a scarcity outlook in life. In addition, they may be afraid of failure, want instant gratification, or believe that successful people have good luck. Conversely, they believe themselves to be unlucky when they do not experience success.
The scarcity mindset described above translates into the entrepreneur mindset in the context of a real estate investing business, and any business for that matter. For example, a “scarcity investor” might feel like there are no deals near them, that the banks are not lending, or that successful competitors are just plain lucky. An investor may also fear failure. One example of this might be when someone is afraid to quit their job in order to pursue real estate investing full-time. Instead of wanting to share abundance and wealth, they may want to hoard investing strategies and tips to themselves. The overarching commonality for individuals with the scarcity mindset is that they tend to blame external factors when opportunities or successes do not come easily, and that they do not proactively search for solutions. If the above descriptions sound like you, then you may have a scarcity mindset.
2. The Abundance Mindset
If the traits of scarcity mindset do not sound like your own business mindset, chances are you fall closer to the abundance end of the spectrum. According to Covey, an individual with an “abundance mentality” or “abundance mindset” believes that success can be shared, and are able to celebrate the successes of others. The abundance mentality is also anchored in the belief of the law of attraction, through which focusing on positive thoughts can bring in opportunities and resources.
How does one know if they possess traits of the abundance mindset? First, individuals may be more inclined to collaborate with others rather than worrying about competition, and are genuinely happy for the success of others around them. They tend not to fear failure, and approach disappointments as learning opportunities. This may be because they think more in the long-term, and do not expect immediate success or opportunities. Finally, instead of assuming that something cannot be done, individuals with an abundance mindset will proactively search for creative solutions.
Having an entrepreneur mindset of abundance drastically affects a real estate investor’s experience in a positive manner. For example, an entrepreneur will genuinely feel happy for others when they close a deal, and are willing to share their industry tips and tricks. In return, they are not ashamed to ask for the help of others when needed. An “abundance investor” takes responsibility for their own mistakes and failures and realizes that luck doesn’t just happen; opportunities must be created proactively.
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Achieving An Abundance Mindset
The key difference between the scarcity and abundance mindsets boils down to how an individual’s outlook on their business affects their actions. An abundance mindset is not limited to that notion that investors attract deals and opportunities merely by thinking positively, and without putting in any effort. The significance of having an abundance mindset is that investors change the way they approach problems and are more likely to find solutions, as opposed to those who give up without trying. By taking proactive steps and creating solutions, “abundance investors” are able to increase their odds of achieving their goals.
If you read the descriptions above and feel that you have a scarcity mindset, do not worry. The scarcity mindset is extremely common, and one might argue that our society is trained to view the world in such a way. With constant bombardment from the news, friends, colleagues, and social media, it is only natural to feel that resources and opportunities are limited, or that success cannot be shared.
An abundance mindset cannot be achieved overnight, but can be attained with consistent effort over time. The first step in making a change is to be mindful and recognize moments of scarcity occurring. When catching yourself, practice reframing thoughts into those of abundance. Next, look for a mentor or a coach who actively practices a lifestyle of abundance and attraction. A mentor can help point out when you have defeating, negative self-talk and can help bring in a fresh, positive perspective. In addition, they can help hold you accountable in your practice. Finally, there are many education resources on the topics of abundance and the law of attraction, including books, blogs and podcasts. By immersing yourself in these topics, you will be sure to notice a shift in your outlook on life and in your business.
Your business mindset can greatly affect the way you manage your real estate business. When opportunities are hard to come by, do you tend to blame it on external factors, or do you spring into action and hunt for a solution? If you answered “yes” to the former, you most likely have a scarcity mindset. If you agreed with the latter, you likely have an abundance mindset. Regardless of which end of the spectrum you may fall on, there is always room for improvement in the approach you take to growing your business.
How do you think your entrepreneur mindset affects your business? Share in the comments below.