Scarcity vs. Growth Mindset
It is so easy to get into a scarcity mindset and it can be tough to get out of it! Believe me, I know and I have learned some valuable tips that I’m going to share with you to help you pivot and regain a growth mindset.
So what is a scarcity mindset?
This is when you become so obsessed with a lack of something, usually time or money, that you can't seem to focus on anything else, no matter how hard you try. In a business sense it’s when cash flow slows, income is light or has slowed to a trickle, perhaps business is quieter than usual or new inquiries have slowed or stopped!
What happens?
We panic, we stress about income and how we will pay bills if this slowdown continues. We worry about the survival of our business. What about rent? What about studio supplies? Aghhhh! I don’t have enough money! This negative mindset is consuming and potentially destructive. It can effect how you move forward in your business and how you are perceived with your potential clients.
Scarcity Mindset = Stress + Anxiety & Panic Decision-making.
When we start making MOUNTAINS out of MOLEHILLS we lose sight of our business goals, we lose focus on our clients and we concentrate all our energy into anxiety. I learned specifically from Sue Bryce Education, (suebryceeducation.com) the bigger the mountain gets, the more you focus on it until that’s all you see! For example, let's say you wanted to focus on family; the more you focus on family, the more you focus your time & efforts on them. This is great for your family but what about other areas of your life? Same goes if you focus all your efforts on your home - repairs, maintenance, and cleaning; your house looks great but what about your family, your business and yourself? When it comes to a scarcity mindset, all you focus on usually is money and your lack of it. You start thinking you don’t have enough of it, you start to try to think of ways to make quick money just to pay the bills. Anything to get the next dollar. A new client represents your bills rather than a client you want to serve.
Honestly - having a scarcity mindset might seem like the most natural thing to do when money is tight but in reality the balance is out of whack as other areas are neglected and overall the effect is negative. A scarcity mindset has a very narrow focus, it’s not a healthy mindset and it takes real focus and dedication to pivot out of it and into a more balanced and healthy mindset. What I like to call - fix it mode, where you start thinking of steps that you can take to better the situation.
Here are my top 3 tips to help you shift from a scarcity mindset to one of growth and positivity.
1. TAKE A BREATH
When things get tough or scary and stressful - take a breath. Step back from the situation for a minute. Because when you're focusing on things in the moment, everything can seem chaotic. Everything can seem stressful and it can seem really daunting to deal with. So take a moment, take a breather. Take some time to breathe and look at the big picture. If you have a close friend, confidant, coach , or business advisor then now is a good time to chat with them. Share your concerns and fears and take time to listen to feedback or advice. Having someone that is removed from your situation offers a different, more OBJECTIVE perspective rather than SUBJECTIVE. And maybe that perspective can help you kind of tone down what you're feeling and help you to take a different approach to resolving the issues.
2. ASSESS THE THREAT
Once you’ve taken a breath and consulted an objective party then you are ready to assess the ‘threat’. This sounds a bit aggressive but if you think about it, scarcity is a threat to our wellbeing in some way. It has to be assessed thoroughly in order to make a plan. For example: If for some reason business isn't going the way you would like and you start worrying about bills and all the things it takes to run your business, you don't want to all of a sudden start throwing out discounts just to try to get money in, because now you're looking at your clients as a way to pay your bills. That’s the wrong energy to have.
What is the threat? The threat is:
reduced clients = reduced income = panicked short term fix (discounting) = unhappy clients long term = lost future business.
You NEVER want to lose sight of the core values of your business in order to make a quick buck. If customer service is at the heart of your business then when you assess the threat you need to consider that whatever action you take it must maintain quality customer service! If you only look at your clients as a way to pay the rent or the utilities, then they're not your client anymore. They're a bill! They have become a way for you to get money, to serve yourself rather than serving them.
Think about your business activities over the last few months….
Is there anything that may have caused business to be scarce?
Was there an advertisement that you haven't done?
Have you not been networking as much as you could have been?
Has your social media stalled a little bit?
Are there things going on in the world that have slowed your client flow?
Overall, what does demand for your product/service look like?
Answering these questions is a great way to identify external & internal factors that may be impacting your business. For example, if my business is lawn mowing, I have loads of work during the Spring & Summer months, but all of a sudden when Fall hits, I'm not getting as much business as I was. It may seem obvious, grass doesn’t grow as much in the cooler months so customer demand for my services drops significantly and my income takes a dive! Argh! Panic! It would be easy for me to slip into a scarcity mindset due to seasonal fluctuations. But wait, let’s assess the threat. What if I pivot my business in the Fall & Winter months? Maybe I switch to raking leaves & trimming trees in the Fall and snow management in Winter? Seasonal fluctuations are out of your control, so are global pandemics! COVID has hit people hard. These things are out of your direct control. If, however, you’ve dropped the ball on your marketing efforts or failed to effectively manage your cash flow then these are examples of internal factors and you can control these! As a small business owner there is a fine balance between serving your existing clients and marketing to new clients.
So, now that you’ve stopped, taken a breath and assessed the threat? Well, you make a plan.
3. FIX-IT MODE >>> MAKE A PLAN & RE-FOCUS
It’s simple really. A plan, strategy, blueprint - whatever you want to call it - I call it fix-it mode - is the best way to move forward and avoid a scarcity mindset. You want to tell yourself the truth by telling yourself what you can do about this particular situation.
Your FIX-IT plan might include:
BOOST - or develop your Marketing Strategy. Rejoin social media channels and reach your target audience with great content. Perhaps you can target your existing clients for referrals and offer them a bonus. Research local networks in your area and join business networking opportunities. Collaborate with an industry colleague to offer a new service to existing clientele.
BUDGET - review your business overheads, where can you trim without compromising your business? Plan to consult a financial advisor or business development coach. Develop a cash flow forecast so you can better manage the usual and unusual fluctuations in revenue flow over the year. Are there other ways you can generate revenue in quiet times with little or no investment? For example - as a photographer I have a studio that I make available for rental. Clients can utilize this space for small business gatherings or as a gallery for an art show etc. I already have the studio and when I am not busy with photo shoots, it’s a great way to supplement revenue and offset overhead.
Let’s recap, turn a negative into a positive before it becomes a negative.
Take this time to take a mental break. If you need to, take this time to figure out other strategies, or to do the things in your business that you otherwise don't have time to do, because you're so busy serving your clients. You want to get out of the scarcity mindset and you want to go into fix-it mode. You want to go into the mode of working in your business and putting your clients right, where they belong. Clients that you want to service, not clients that you want to get money from. Turn a scarcity mindset into one of growth and purpose!
