Ever have those mornings where you run into back-to-back problems, where it feels like it’s one thing after another?
Your kid needs something, your car breaks down on the way to work, then when you finally get to work, your employees already have a list of issues that need to be fixed.
That’s how it was for me today.
This morning was hectic – my daughter had several problems that I needed to tend to, and by the time I finally made it to work, I had my own challenges to face. No parking. Tight deadlines. My team had issues too. It felt like a cascade of problems.
But why does it always feel like problems multiply?
The answer lies in our biology. Humans are wired to focus on problems. It’s our natural instinct to identify threats and jump into fight-or-flight mode – a relic of our primitive minds.
The problem with this is, when all we see are problems, we can get overwhelmed by the “threats” in our environment to the point where we become ineffective at solving those problems.
But today, I want to take a step back and explore how we can break free from this biological trap. It’s important to retrain our minds to focus on solutions instead of problems as this is the key to success. Not only that, evidence suggests that making this shift leads to greater wealth, health, and longevity.
First, let me share an example of one of our searchers in the Acquisition Lab who was able to turn a seemingly bad deal into an incredibly good one by remaining solution-focused throughout the process.
One Man’s Trash Is Another Man’s Treasure
In the Acquisition Lab, we work with about 600 buyers looking to acquire a business, and let me tell you, the small business landscape is challenging. Notoriously difficult to navigate, finding the right deal often takes longer than expected.
You go from thinking you’ll land something in a month to finding yourself still searching months down the road. A listing that was once a good fit for you now no longer is. When you’ve been in the search for some time, it’s easy to start believing that every new business you look at won’t be the right one.
One of our searchers recently shared a unique approach he took with his latest acquisition.
The acquisition started out as a listing that had been on the market for a while – 12-18 months. The broker was likely asking for too much, particularly since the business had been trending downward for a few years. Several buyers had shown interest, but none had closed the deal, and the seller was ready to move on.
This buyer figured out that during the pandemic, the seller had relocated to Florida, leaving the business without any real management. No one was actively running it, and as a result, the business had several operational issues.
But this searcher took a different approach.
Instead of walking away, he asked if he could work in the business for a month to figure out what was going on. The seller agreed.
Once inside the business, the buyer quickly discovered that the business was being poorly managed. They were overpaying for their inventory because of lazy purchasing practices, and their sales efforts were just as careless. Their gross margin had shrunk dramatically, simply because no one was paying attention.
On top of that, the buyer discovered that their highest-margin product had been discontinued – not because of any strategic decision, but simply because no one was keeping track!
It became clear that the seller was already checked out and ran the business on autopilot, just trying to keep it afloat until a sale could be made.
So the buyer made an offer of 0.7 times earnings, all in cash at closing for both the business and the real estate. For the inventory, he offered to buy it on consignment, which would help the seller get paid out quickly.
The seller agreed to these terms, and they closed on the deal.
Most buyers would look at this business and think it was a lemon, but for this buyer, it wasn’t – it was an undervalued gem. By identifying and addressing the root problems, he was not only able to secure the business for a fraction of its earnings, but he was now able to implement very easy solutions to dramatically increase its profitability in a short period of time.
The moral of the story is that his willingness to dig deeper and invest time where others hadn’t is what made a “bad deal” turn into a good one. Sometimes the difference between an impossible problem and a day-saving solution is the willingness to pursue a solution at all costs.
Relentless Solution Focus: The Key to Overcoming Negative Thinking
This concept can be described as “relentless solution focus” (RSF), coined by Dr. Jason Selk, who has written a number of books on mental toughness, including the book Relentless Solution Focus: Train Your Mind to Conquer Stress, Pressure, and Underperformance.
Source: Bookish Elf
I met Dr. Selk in 2010, who was the mental training director for the St. Louis Cardinals for six years, helping them win two World Series championships.
What is RSF?
RSF is a mindset that allows you to stay focused on solutions, even in, and especially during, adversity.
Cultivating this mindset can help us overcome our tendency to see the worst in situations and retrains our brain to think about solutions instead of focusing on problems.
It’s not just about being optimistic and happily accepting everything the way it is – RSF allows us to focus on how we can improve our circumstances.
As Selk says in his book, “RSF is the antidote to mental weakness and negative thinking.”
RSF is a three step process:
- Recognize when negative thinking has set in.
- Replace the negative thinking with more positive thoughts within 60 seconds or less.
- Retrain the brain into developing mental strength by developing your framework for success and honing in on your life’s vision.
I like to tie this in with the concept of a growth mindset – something I’ve talked about a lot, especially in reference to the work of Carol Dweck and Marty Seligman in positive psychology. In my view, relentless solution focus is not just a mindset but also a practical approach to how we face challenges, whether in life or business. I’ve applied it many times myself.
RSF can transform not just your business but your entire life. Research shows that people with an RSF mindset are healthier, happier, and more successful. In fact, they tend to live 14 years longer than those who don’t adopt this approach!
Source: Facebook | Dr. Jason Selk
In business, it’s especially important because challenges are constant. The acquisition landscape is fragmented, opaque, and tough to navigate. And if you’re already a business leader, fostering this mindset in your organization leads to improvements across the board – personal and professional.
Mental toughness is not an innate trait – it’s a way of thinking that anyone can learn.
Running a Book Printing Company In a Digital Era
Shortly after meeting Dr. Selk, I was running my book printing company, and the industry was in crisis.
Amazon had just released the Kindle, Apple launched the iPad, bookstores were closing down, and even newspapers were going out of business. People’s reading habits were changing.
Source: The Guardian
I had to lay off 10% of my workforce and furlough another 15-20%. Every conversation was about what we couldn’t do. Meetings seemed to be filled with, “Yeah, but we can’t do this because of that,” or “That won’t work because of this.”
Although it would have been easy to get stuck in negativity, I remained solution focused. Without realizing it, I started using RSF by repeatedly asking, “What is the one thing we can do differently to make this better?”
I instinctively realized that we needed to change our mindset. That shift in focus, from problems to solutions, was invaluable in helping me lead the team through such a difficult period.
Using Relentless Solution Focus in Acquisitions
This is a lesson I also emphasize in the Lab with our buyers. I try to get our buyers out of the habit of aiming for perfection and simply focusing on improvement.
When dealing with an ambiguous situation, I advise them to ask themselves, “What needs to be true for me to take the next step?” This is important when evaluating a deal or any situation.
The problem with aiming for perfection is that you’ll never get anything done. You don’t need a full solution to move forward – you just need to do one thing better.
In the example I shared, the searcher realized that the only way to solve the problem was to spend time in the business, and the seller – motivated by how long the business had been on the market – was open to it. This approach led to an incredible deal with huge growth potential.
One of the important aspects of RSF is the R – relentless. This means you are always doing this. Every single time. Because our brains are wired to focus on problems, you have to actively train yourself to shift from problem mode to solution mode. And you need to do this fast – Dr. Selk says you should switch your mindset within 60 seconds.
By doing this quickly, within those first 60 seconds, you tap into the power of “expectancy theory,” which states that what you focus on expands. This creates a positive feedback loop, moving your thoughts from problem-focused to solution-focused and making the mindset a habit.
Even identifying a potential solution boosts optimism, and it starts a cycle of forward-thinking.
Take this relentless solution focus and apply it to your life – whether at work, in your search, your investments, or even your relationships. What’s a problem you’re facing right now? What’s the one thing you can do to make it better? Start applying RSF to your life today, and watch how it transforms your life.
Ready to acquire a business in the next 12 months? The Acquisition Lab is your first stop. Reach out to us today and get on the fast track to becoming an acquisition entrepreneur.
