How does your locus of control affect your ability to run a business?

To be a successful business owner, you need to be many things.

A controlled individual.

Someone who is able to meet deadlines.

Adaptable and confident to bridge the gap in the market.

Above all, you need to be resilient.

Your mindset plays a big role in your success, with your locus of control having a significant impact on how you approach challenges.

Internal locus of control (strong)

A locus is a place where something is situated or occurs – emotions, physical events, decisions et cetera.

If you have a strong internal locus of control, you will likely feel that you’re in full control of the events in your life.

You will know that the decisions you make for your business are right and are focused on achieving the goals you set for yourself.

A strong internal locus of control often means those who embrace this quality make good leaders.

Although a strong internal locus of control is regarded as a good quality to have when it comes to being a business owner, a very strong internal drive might lead you to believe that you can control everything – even when events are genuinely beyond your control.

Adhering to a strong and stable level of control will help your business to succeed and grow when you recognise mistakes can happen but understand there are opportunities to learn as you grow.

Internal locus of control (moderate)

A moderate locus of control will mean you likely see your future in your own hands with the drive to engage in activities that will improve your situation.

Becoming a business owner, or enhancing your skills as a current business owner, requires you to work hard to develop your knowledge, skills, and abilities.

Very few people have a wholly internal or external locus of control.

Your locus of control may vary in different situations, but it is most important to use during your time as a business owner.

Having a moderate locus of control might make you accept situations that you can’t influence, such as rising inflations or changes to your tax obligations, whilst placing you in a better place to manage them effectively when they do arise.

External locus of control

An external locus of control will mean you likely believe that what happens to you is a result of luck or fate.

Feeling like you don’t have the power to change things that are affecting your business might drive you to give up and let your business run its course the way you think it is meant to.

It is important to step back and remind yourself that you can always make choices regarding the future of your business.

Self-confidence will quickly build once you have set goals for yourself and develop your decision making and problem-solving skills.

These tools enable you to take greater ownership of situations, helping you to become the best business owner you can be.

Adopting these mindsets, or growing from your current way of thinking, will help you to thrive as a business owner and increase your success.

Our experts specialise in advising business owners as they navigate their business journey, providing guidance at every stage.

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Posted in blog, Business, SME's.