Opinions expressed by Entrepreneur contributors are their own.
There are over 34 million small businesses in the U.S., but according to the Bureau of Labor Statistics, 20% fail within their first year. That begs the question — what makes the difference between a successful business and one that doesn’t last?
There are many different answers to this question, but one factor that can’t be overlooked is the mindset of the business owner. Your mindset shapes how you handle problems, act on opportunities and the kind of company culture you build. Let’s look at the five mindsets all entrepreneurs need for a successful 2025.
Related: Entrepreneurial Success Comes Down to Having the Right Mindset — Here’s How to Make Sure You Do
1. Cultivate self-belief
Self-belief is a prerequisite to success because starting and running a business is full of uncertainty. You have to believe in your ability to face challenges and accomplish your goals. Your self-belief can inspire your team and help them become more willing to take risks and face challenges head-on. And investors will be more willing to take a chance on a founder who’s confident about their vision.
One way to cultivate self-belief is by focusing on your strengths instead of your weaknesses. Many people try to manage their weaknesses, but according to Gallup, you can’t create a strength by investing in a weakness. Identify your areas of expertise and focus on leveraging those strengths in your work. You can hire people to do the work that you’re not suited for, which will help you build a well-rounded team.
2. Build resilience
Resilience is what allows you to recover from setbacks and continue moving forward in the face of adversity. It also allows you to find ways to adapt and pivot when what you’re doing isn’t working. Resilience isn’t a trait that you have or don’t have — it’s a skill that can be developed over time.
You can build resilience by developing a growth mindset and viewing challenges as opportunities to grow. When you find yourself in a difficult situation, take some time to consider what you can and can’t control. From there, put your energy into the things you can control and let go of the rest.
It’s also important to build a strong support system of peers and mentors who can encourage you through the hard seasons. You can meet these individuals at networking events, by participating in online communities or by joining a mastermind.
3. Set clear goals
The right goals will provide direction and purpose for your business. Without a goal, it’s impossible to know what you’re striving for and what success even looks like for your company. However, many people make the mistake of setting goals that are too vague or that don’t align with their mission.
Focus on setting SMART goals — goals that are specific, measurable, achievable, relevant and time-bound. Create a timeline for when you hope to achieve your goals and track your progress to make sure you’re staying on track. That way, you can adjust your strategy if you notice your progress has stalled.
It’s also a good idea to set a combination of short-term and long-term goals. Involving your team in this process will help them become more invested in the company and provide you with accountability.
4. Focus on solving problems
Problem-solving is a process of identifying issues that could hurt your business and finding ways to mitigate or eliminate them entirely. To a certain extent, everyone understands how to problem solve, but it’s a skill you can get better at over time.
Problem-solving also enables you to think creatively and set up your business in a way that’s different from your competitors. It improves your decision-making and allows you to quickly adapt to changing market conditions.
To become a better problem solver, you need to find a process that allows you to evaluate your situation, brainstorm possible solutions, execute your new plan and measure the results. You also need to develop a mindset where you embrace problems as opportunities to grow.
5. Stay customer-focused
Without your customers, your business would cease to exist, which is why it’s so important to build a business that’s always trying to improve the customer experience. By building a customer-focused company, you’ll improve your bottom line and stand out from your competitors.
In order to do this, you have to start regularly asking for feedback from your customers. Fortunately, businesses have more ways to reach their customers than ever before. You can email your customers surveys, request customer reviews, conduct customer interviews and monitor social media feedback.
You can also build a customer-focused business by taking care of your employees. Richard Branson has been quoted saying, “If you take care of your employees, they will take care of the clients.” When you invest in your employees, you’re empowering them to deliver better results for your customers.
Related: If You Want to Be More Successful Than Your Competition, You Need This Mindset to Win
Setting your business up for success in 2025 requires the right mindset. The five mindsets outlined in this article will enable you to navigate uncertainty, take advantage of opportunities and build stronger relationships with your customers. It will also help you create a long-term vision for your business and continue to grow as a leader.
