Living In the Story: How Your Mindset Shapes Your Business Success

Every business owner has faced a moment of frustration—a job that didn’t go as planned, an employee who didn’t meet expectations, or a client who seemed impossible to please. But have you ever stopped to ask yourself, “Am I reacting to what actually happened, or to the story I’ve created about it?”

The truth is, we all live in the story. The way we perceive situations, assign blame, and process challenges isn’t always based on fact—it’s based on our experiences, beliefs, and emotions. If you want to grow your business, improve leadership, and make better decisions, you must learn to separate the story from what actually happened.

In this blog, I’ll break down how understanding the three human distinctions—living in the story, already always thinking, and running rackets—can help you become a more effective leader, communicator, and business owner.

Distinction #1: There’s the Story and There’s What Happened

Imagine you’re on a job site, and a painter didn’t cut a straight line. Your first thought might be, “He doesn’t care about quality. He’s lazy.” But what actually happened? The line wasn’t straight. That’s the only fact.

The story is the judgment you attach to it.

Instead of reacting emotionally, step back and ask: Did they have the right tools? Did they know the expectations? Were they properly trained?

By shifting your mindset, you stop reacting and start leading. Great leaders don’t live in the story—they analyze the facts and find solutions.

Distinction #2: Already Always Thinking

This concept explains how our brains fill in the blanks before someone even finishes speaking. You assume you already know what they’re going to say, so you stop listening.

For example: A painter starts explaining why they’re behind schedule, and before they finish, you’re already thinking, “Here come the excuses.”

The problem? You’re not actually hearing them.

When we practice active listening, we improve communication, strengthen relationships, and build a team culture based on understanding—not assumptions.

Leadership Tip: Next time an employee or client speaks, pause before responding. Really hear them out.

Distinction #3: Running Rackets

A “racket” is a behavior pattern people use because it benefits them in some way. Even if it’s negative, they keep doing it because it gets them a certain result.

Example: A painter shows up late repeatedly and always has an excuse.
A client constantly demands extra work without paying more.

Why? Because it works for them.

Your job as a business owner is to recognize rackets and set boundaries. If you don’t, you allow behaviors that drain your business.

Leadership Tip: Next time you see a pattern, ask yourself, “What’s the payoff for them?” Then, set clear expectations and consequences.

How These Mindsets Impact Your Business

Better leadership is rooted in responding to facts, not emotions, allowing you to make clear, objective decisions that guide your team forward. A stronger team culture develops when you prioritize active listening and open communication, fostering trust and collaboration. And higher profits naturally follow when you eliminate inefficient behaviors, creating a focus on actions that add value and drive success.

Want to learn more about mastering mindsets? Book a complementary strategy session with me! Follow this link: Connection Conversation with Michael