The Value of Optimism

From placing the ball to walking a few paces back to where his run-up would begin, he didn’t feel in control of his legs and the voice in his head – an inner narrative he believes everyone has and is key to wellbeing – offered up only negativity. What if he sliced the ball? Or didn’t even hit the target? Southgate felt the weight of attention that would never, really, leave him; the burn of a spotlight that would scar.

Those that followed English football in the 1990s know that any hope of success was eventually snuffed out from 12 yards by a team of imperious Germans. This was best demonstrated by Gareth Southgate’s weak effort on a balmy night at Wembley in 1996, ensuring that football wasn’t actually coming home after all. But why did the result repeatedly end this way? Technique? Practice? Luck? Or was it about the German team having a more optimistic mindset? Research has shown that players thinking about the impact of missing a penalty are less likely to score than those focusing on the glory of scoring. England have consistently had some of the best footballers in the world since the game was formed, but only have a 60% scoring rate in shootouts against a global average of 71%. The German rate is 85%. Is optimism the key to success?

It’s not easy to approach life with optimism at the moment. Even the most indefatigable amongst us are affected by the impact of omicron, inflation, global political instability, and a range of other factors creating a “perfect storm” of concern. I have certainly sensed this and I recognise it in many friends and colleagues. Given this I have started thinking about the power of optimism, and why I believe we should all attempt to actively enhance our ability to think and live optimistically.

The Benefits of Optimism

When one reviews the available research it is very hard to find anything that isn’t beneficial about being more optimistic. A 2019 study led by Lewina Lee from Boston University School of Medicine suggested that optimists live longer lives, with the most optimistic having a lifespan almost 15% longer than the least. Lee said it was not yet clear why optimism is linked to longevity. “In our study, healthier behaviours, fewer depressive symptoms, and more social ties only partially accounted for the association from optimism to exceptional longevity,” she said, adding there are likely to be other mechanisms at play, such as optimistic people coping better with stress.

Research also shows that optimists are, unsurprisingly, happier than pessimists. There are numerous reasons for this, but one of the most interesting is that according to researchers from Stanford University optimists have higher quality and longer-lasting romantic relationships. And, perhaps surprisingly, these results hold when only one partner is an optimist. Psychologists believe optimism leads to a greater sense of perceived support from a partner, which helps couples fight fair. When asked about a point of contention in the relationship, both optimistic thinkers and their partners were more likely to say that the other partner was invested in making the relationship better, leading to greater conflict resolution.

Optimism also has the benefit of leading to improved performance at work according to Dr. Beth Cabrera, Senior Scholar at the Center for the Advancement of Well-Being at George Mason University. “One study looked at the impact of positive thinking on performance of insurance agents working at MetLife. The researchers discovered that agents who scored in the top 10% on an assessment of optimism sold 88% more than insurance agents who scored in the bottom 10%.” And MetLife is no anomaly. Dr. Cabrera said that a study of several organisations showed a correlation between employee optimism and higher performance ratings. “People are more likely to work hard and persist towards their goal if they expect to succeed,” she said.

Martin Seligman Ph.D has published prodigiously on the subject, “optimism can increase the duration and intensity of your positive emotion, can enable you to use your highest strengths and talents more effectively, and is invaluable for the meaning of life. With a firm belief in a positive future you can throw yourself into the service of that which is larger than you are.” Dr. Seligman has led the concept of Learned Optimism, and has proven that it is possible to become more optimistic through following basic and simple techniques.

Becoming More Optimistic

So how does one become more optimistic? It certainly isn’t as simple as choosing to be so. Below are some tips that may help.

Assess your own optimism

Optimism vs pessimism isn’t black and white. We all exist on a sliding scale and this can be ever changing. To assess your own current level of optimism try to actively notice your thinking and assess whether you are focusing on positive or negative thoughts, and whether you are being fair and reasonable to yourself when evaluating situations. More formally there is a test that can be taken within Dr. Seligman’s book, Learned Optimism. A pdf of the test is available here, although I would recommend purchasing the book for a fuller view.

Spend time with positive people

Optimism can be contagious (unfortunately so can viruses and so be careful on this one). If you surround yourself with negative people then this is likely to impact your own view of the world. Positivity doesn’t have to come in the form of a Ned Flanders figure, legendary Scottish football manager Sir Alex Ferguson would never give his players more than a “well done” in praise as his whole mantra was based on positive belief in winning. I personally find a calm, authentic and positive voice in a business environment very inspiring.

Keep a gratitude journal

This won’t be for everyone but a tangible step that can be taken is to write down three things each day that you are grateful for. It sounds very simple but it can have a significant impact on resetting negative thoughts. My own personal experience of this is that it can be very useful short term, but can end up repetitive in nature after a month or so, hence losing impact. There are tools such as The 6 Minute Diary that can be purchased to facilitate this process, but my advice would be to try this initially without spending any money and invest only if it is working for you.

Get some sleep

On average two thirds of people reading this will not be getting enough sleep. For many experts the lack of sleep in the developed world is the greatest health crisis that we face and is the root cause for many of the other physical and mental health challenges that gain significantly more media attention. A lack of sleep leads to tiredness, which leads to becoming emotional and anxious. It’s much harder to be rational and logical when you are tired and so optimism will suffer. Rather than create a big list of tips here I recommend reading Why We Sleep by Matthew Walker, but my top tip is to be conscious of the impact of substances such as caffeine and alcohol on sleep quality, because quality of sleep is just as important as quantity.

Look after your body and your mind

Rather than putting anything preachy here I’ll just reinforce the need to take care of your physical and mental health. Those that don’t are more likely to think negatively. I am a fan of mindfulness and there are many books and apps which can help train how to meditate (Waking Up by Sam Harris is excellent). I’ve personally found that escaping into the countryside on my bike serves the same purpose and so I make sure that I carve out time to do that as a priority.

Don’t believe the doom

Even prior to the pandemic the newspapers and social media made pretty grim reading. It’s hard to feel positive about the world when it appears that it is falling apart, and many social media platforms are awash with anger and falsehoods. My recommendation is to assess whether social media is enhancing your existence, and if not then remove yourself (as I did from Facebook). Regarding the world falling apart, this is actually as far from the truth as you could be. On pretty much any measure such as inequality, life expectancy, famine or democracy the world is improving. But rather than take my word for it review the data for yourself; Our World in Data is a great resource for seeing the facts for themselves.

Before I finish I just want to reveal a Shawshank Redemption style twist; I am by any test and measure a natural pessimist. My awareness of this means that I need to be conscious of my thinking, and ensure that I follow my own advice. It is important to mention here that when applied rationally pessimism can be realism, and can be of great value. I work best with those who dream big, not because my nature prevents these dreams becoming reality, more that I see likely problems and challenges before they arise so that proactive plans can be made to overcome them.

I started this blog talking about a negatively minded Gareth Southgate missing a penalty in a major football tournament, and by a twist of fate a quarter of a century on he is now manager of the English national team. This Summer, back at Wembley, his team had the chance to win the tournament on a penalty shootout. Did his focus on positive thinking result in a breaking of the voodoo? I’m afraid for these green lands (and the narrative of my blog) it didn’t, a team of talented and fearless Italians deservedly won the trophy. Optimism didn’t lead to Southgate’s team winning, but without doubt it will mean that they can take the loss constructively and strive for better in the future.

However you see 2022 and onwards I hope that you are able to see some hope on the horizon, if not then please reach out to me for a chat. I wish all of my clients, suppliers, colleagues and friends an enjoyable Christmas period and an optimistic future.

Suggested Reading

Learned Optimism (Martin Seligman)

Why We Sleep (Matthew Walker)

Waking Up (Sam Harris)

Our World in Data

My lessons from a year running my own business

Today is the first year anniversary of the establishment of my company, Viability Solutions Ltd. Unlike other first birthdays this is less about caterpillar cakes and Peppa Pig themed gifts, and more about adhering to HMRC requirements and renewing annual costs such as this website. Running my own business was something that I had always aspired to do, but continually put off due to it not being the “right time”. So, on this anniversary I wanted to put down on paper (or in this case at least 364 more days of funded web space) some of my lessons around starting a business, and why I believe more people should consider it.

Firstly it is worth starting with the reasons that I didn’t, and millions of others like me don’t, take the step from being employed to being self-employed;

Security – what happens if I don’t have enough customers? What happens if I get ill? What happens if there is another financial crash? These are all legitimate questions and I certainly wouldn’t want to underplay any of them. However, particularly given the experiences of many during the pandemic, when you peel back the façade of security that most have in employment the reality doesn’t always appear as secure as one may assume. Lack of sick pay in particular catches many people out at their most vulnerable.

Self-doubt – it is very easy to believe that there will be aspects of running a business that may be very challenging. But isn’t this the case for pretty much everything worth pursuing in life such as buying a home or becoming a parent? Spoiler – it’s probably harder than the first but definitely easier than the second, particularly when you throw home schooling in. And as we all tend to find out sooner or later, if you don’t believe in yourself then who else will?

Not having an idea – for every company based on a moment of genius there are a thousand based on doing basic valuable functions well. As I’ll touch on later it is important to understand the value proposition of your business, but you don’t need to have come up with the next Uber to start a business.

Funds – depending on the business model setting up and running most small businesses isn’t expensive, living is expensive. Assuming that you aren’t looking to make a significant capital investment or purchase a franchising opportunity the question that needs to be answered is how much do you need to “take home” each month to support yourself and your family?

Now that we’ve established the reasons that one may not set up a business, let’s explore the benefits of doing so;

Autonomy – the beauty of running your own business is that there is no-one telling you what to do (the horror of running your own business at times is also that there is no-one telling you what to do but that is a different issue). You are in charge of all of the things which you previously may have questioned; strategy, culture, marketing, dress down Fridays. It is hugely liberating.

Work / Life balance – many small business owners will be aghast that I have suggested that setting up one’s own business involves anything approaching work / life balance… but that is the point. You can choose to have a business where you work night and day, or you can choose to have a business that fits around the life that you aspire to have. Neither of these is right or wrong and both will not go to plan all of the time, but you are in control.

Rewards – the vast majority of us work to live and not the other way around so it is important that we can see some form of financial return for our endeavours. I think if you asked the majority of small business owners, particularly in their early years of setting up, they would say that their personal earnings are below the level that they were, or could be, in an employed role. However the main reason for this is that they are sacrificing in the short-term to try and build something of value in the long-term. Earnings through PAYE will be heavily punished by HMRC once they reach a certain level, it is far more tax efficient and flexible to use a combination of PAYE and dividends with your own business, and as well as this you are building something of value which you may one day choose to sell.

I hope that this has helped to explore why you might or might not want to establish your own business. I’m now going to move on to some advice that may come in handy if you do choose to establish a company yourself.

Access the right advice

This section splits both formally and informally. On the formal side I would strongly recommend finding an experienced and competent accountant. Whether you struggle with numbers or (like me) consider spreadsheets close personal friends, there are a number of areas which would either pose a significant risk of falling foul of rules and requirements, or missing out on potential tax efficiencies. The rules are extraordinarily complicated and rather trying to understand them all yourself it is best to pay for an expert to worry about those things for you. IR35 is a good example of an area that can be highly confusing. Out of the 1,018,250 inquiries between November 2019 and May 2021 on the HMRC’s online checking tool, 210,000 came back as “unable to determine” whether a contractor was IR35 compliant or not. As well as formal advice I would recommend finding one or two mentors who have been through this process before and can help to guide you. Running your own business can be a lonely endeavour and so being able to lean on someone experienced in wearing the t-shirt can be of great value.

Understand your value

This is as fundamental to Amazon as it is to a sole proprietorship, who are your customers? Why should they choose you? What other options do they have? The answers to these questions should fundamentally shape your strategy, marketing and pricing. If you are confident in your strategy then you will feel under less pressure to drop your pricing when pushed. Linkedin is a great place to examine how companies communicate their value, and how many fall into the potential pitfall of just making noise rather than having a clear value proposition.

Know where your first invoice is coming from

I know that this sounds idealistic but it is a fantastic way of validating whether the business is workable in reality. Converse informally with potential clients prior to making a decision to proceed, and attempt to gain a verbal indication that they will become a paying customer at launch. If you are considering moving from being employed to being self-employed then this work can happen prior to resigning, and depending on the terms of your contract (worth a check in any circumstances), you can start running the company prior to making the decision to resign from your job.

Be stubborn about your goals but flexible about your methods

This quote from William A. Donohue I think is perfect advice for any small business owner. I find it interesting because it stresses both the need to understand your goals as well as making it clear that flexibility will likely be needed to get there. Your goals may be a feeling of self-control, they may be building a valuable company, or they may be spending more time with your family. Whatever they are it is important to understand them and keep them front of mind. Being flexible involves being open minded to change, being happy to pivot towards opportunities as they arise, and not allowing one’s pride to get in the way. There is no shame in taking an employed role to pay the bills if things don’t go to plan.

Be yourself

At the pinnacle of Maslow’s Hierarchy of Needs sits self-actualisation, this is defined as “the complete realisation of one’s potential, and the full development of one’s abilities and appreciation of life.” For me this is the point where one can be truly authentic and at peace with yourself. Whether that makes you Don Draper or David Brent doesn’t matter, if you can’t try for this running your own business then when can you?

As I finish this blog (that’s right, nearly there) I want to stress that some of my most rewarding moments have come whilst working in an employed capacity, and they may again. I certainly wouldn’t want to give the impression that this is somehow of lesser value. We are all just trying to make the most of the time that we have and it’s not for anyone else to say what decisions others should make.

The trends of the workplace were changing long before COVID-19; the emergence of the gig economy, more home working, less job security. The pandemic has impacted us all differently and whatever your personal priorities are as we restart normal life with those precious anti-bodies coursing through our veins, I hope that should you be considering starting your own business then reading this may have helped. As I enter my second year I am just scratching the surface of my learnings, but if I can be of any assistance then please give me a call.