Why a Growth Mindset is Essential for Success-Minded Small & Medium Businesses

Co-authored by Nate Olsen and Bob O’Malley

Why Growth Equals Business Success?

Many small business leaders are focused on survival and a comfortable lifestyle, many others are driven to see their businesses grow, expand, and out-compete. They view growth as the ultimate success criterion.

My comments in this posting are centered around growth and how small and medium-sized businesses (SMBs) can systematically achieve it, enabling all sorts of benefits.

According to Jill Zucker, Senior Partner, McKinsey, “Growth drives performance. It drives culture. It drives employee satisfaction. It helps you retain the best talent. And it fosters innovation in the marketplace. But it’s important to grow profitably. Top-line-only growth tends to catch up with you over time. And while most organizations aspire to grow, we find that growth is quite hard to achieve. Only 25 percent of companies grow sustainably over time. But if you can achieve it, that growth is rewarded, with sustainable growth outperformers generating seven percentage points more annual total shareholder returns than their peers.”

As companies increasingly face challenges related to competition, talent shortages, technology adoption, and operational efficiency, leaders who have the right mindset—and the right people—can make all the difference. Call the right mindset a “Growth Mindset.”

Studies show that having a Growth Mindset leads to sustainable success.  We believe in elevating the growth mindset ideology into how we help guide businesses toward achieving it.

Bob O’Malley, who brings over 35 years of experience leading companies in the technology industry, joins us in exploring how businesses can embrace this approach. 

Together, we will highlight how a Growth Mindset, when supported by thoughtful strategic outsourcing and expertise, helps SMBs streamline operations and focus on what really matters: markets, customers and growth.

What is a Growth Mindset?

A Growth Mindset, as defined by psychologist Carol Dweck, is the belief that talents and abilities can be developed through dedication and hard work.

⭐️ Companies with a Growth Mindset see challenges not as obstacles but as opportunities to improve and grow. 

Research has consistently shown that businesses embracing this mindset foster more innovation, boost employee engagement, and outperform their competitors.

In our combined experience, leaders who adopt a growth mindset create cultures where continuous learning and improvement are encouraged. 

For example, we’ve worked with clients who revamped their employee development programs, resulting in better team performance and a more agile approach to market changes.

In contrast, organizations with a “Fixed Mindset” are resistant to change, avoid challenges, and struggle to cope with setbacks. They have trouble attracting top talent and slip into mediocracy.

How Does Organizational Culture Fit with a Growth Mindset Leader?

Organizational culture is a reflection of leadership. 

⭐️ Leaders with Growth Mindsets build environments where employees feel safe to take risks, learn from failures, and innovate without fear of repercussions. 

This type of culture fuels progress and positions the business to adapt quickly to new challenges.

At BestFit PEO Solutions, we’ve seen many clients adopt this mindset by creating a culture that rewards learning and problem-solving. 

In our work across industries, we’ve noted that the shift from traditional technical management to client business transformation is a critical factor. 

Bob O’Malley, who has led several companies, including Immersion, Pinacor, and InFocus, has observed that today’s successful businesses are those that focus on business transformation rather than just operational tasks.

“We’re seeing a rapid shift in the value that solution providers in all industries, bring to their clients,” says Bob. “In an ever-changing business environment, the need for innovation in business models and a Growth Mindset are more important than ever.”

Efficient Avenues of Growth for SMBs

For SMBs, growth can take many forms, but the most sustainable approaches are often strategic and efficient. Some key avenues include:

• Expanding Service Offerings: Offering additional services to existing clients can drive revenue without needing to acquire new customers.
• Investing in Technology: Leveraging new technology to automate processes can delight clients. improve productivity, and reduce operational costs.
• Client Retention: Building trusted relationships with existing customers is one of the best ways to ensure long-term success.

We’ve helped several of our clients pursue these avenues by eliminating distractions and allowing them to focus on growth. For example, technology investments that automate processes have allowed our clients to achieve operational efficiencies without sacrificing service quality. 

With Bob O’Malley’s passion for technology-driven solutions, he adds, “Technology partners are more valuable than ever, but the key is to align the partner’s capabilities and aspirations with the client’s Growth Mindset. The cultures must fit.”

Why Don’t More SMB Leaders Pursue a Growth Mindset?

Despite the clear advantages of a Growth Mindset, many SMB leaders struggle to adopt it. The reason? 

Operational distractions that keep them from focusing on growth. Can keep them from allocating their full resources to growth generating activities. These distractions often include:

• Managing bookkeeping and cash flow.
• Recruiting and retaining top talent.
• Ensuring data security and compliance.
• Identifying and implementing new productivity tools.

While these tasks are essential, they often consume valuable time that could be spent thinking strategically about growth. These tasks also require sophisticated skills not found in most SMBs organizations. It’s easy for business leaders to become bogged down in these day-to-day responsibilities, losing sight of long-term goals.

How SMB Leaders Can Minimize Distractions Cost-Effectively

To overcome these distractions, SMB leaders need to bring in expert support on a project or part-time basis. This allows them to focus on the bigger picture while specialists handle specific operational tasks. We call the process strategic outsourcing. With strategic outsourcing, a SMB leader gets access to business infrastructure talent and skills of a large enterprise on an as needed basis.

Here are a few ways SMBs can leverage strategic outsources expertise:

• Managed Service Providers (MSPs): In the technology sector, an MSP can take care of IT infrastructure, freeing up business leaders to focus on core operations.
• Fractional CFOs: For businesses looking to scale, a fractional CFO provides the financial expertise needed to improve valuations without the cost of a full-time executive.
• PEO Service Providers: PEOs can manage HR functions like recruitment, employee benefits, and retention programs, allowing SMB leaders to focus on strategic growth initiatives.

“Bringing in the right expertise at the right time and at the right cost is a game changer for SMBs,” says Bob. 

“Whether it’s a fractional CFO, a PEO, or an MSP, these specialized roles give business leaders the freedom to focus on strategy without getting bogged down in daily tasks.”

Leveraging Expertise to Enable a Growth Mindset

For SMB leaders to fully embrace a Growth Mindset and guide their organizations toward sustainable growth, they need access to advanced skills—but they don’t need to employ these skills full-time. 

The answer lies in outsourcing certain tasks to external experts, such as fractional CFOs, MSPs, and PEOs. By freeing up leaders from operational burdens, businesses can focus on growth and innovation.

At BestFit PEO Solutions, we specialize in connecting SMBs with the right external partners, whether that’s a PEO to manage HR or an MSP to optimize technology operations. 

Our combined expertise with Bob O’Malley, whose extensive background in the IT industry has given us insight into the power of business transformation, allows us to provide affordable, tailored solutions to meet each client’s specific needs.

Our goal is to help SMB leaders cultivate a Growth Mindset, remove distractions, and focus on sustainable business growth.

Let us help you find the right fit and unlock your growth potential.