Welcome to the Owner Institute Newsletter where we talk about getting owners working on and not in their businesses.

In this week’s issue:

Quick Hits

Deep Dive:

The Brutal Truth: Everything in Your Business is Your Fault

(And Why That's Good News)

I'm about to tell you something that might piss you off. But it's the most important lesson I learned in 18 years of building a business:

Everything in your business is your fault. You either hired it, did it, or allowed it to happen.

Harsh? Absolutely. True? 100%.

The Blame Game

I've coached dozens of business owners, and here's how those conversations often start:

"My employees just don't take initiative." "My clients keep asking for discounts." "My vendor keeps missing deadlines." "My sales team isn't hitting their numbers."

Notice the pattern? "My" business, but "their" fault.

I used to do the same thing. Blame the client who was "too demanding." Blame the employee who "just doesn't get it." Blame the market for being "too competitive."

Meanwhile, my business stayed stuck at $4 million for years.

The Mirror Moment

My breakthrough came when I finally looked in the mirror and asked: "What am I doing wrong here?"

Turns out, a lot:

Everything that wasn't working was because of decisions I made or didn't make.

That's a gut punch. But here's where it gets good.

Why This Is Actually Great News

If everything is your fault, that means everything is in your control. And that's power.

Think about it:

If your employees aren't performing, that's your fault... Which means you can fix it by changing your hiring, training, or management practices.

If your clients are difficult, that's your fault... Which means you can fix it by changing your sales process, contracts, or client education.

If your cash flow is a mess, that's your fault... Which means you can fix it by changing your financial systems, pricing, or spending decisions.

Once you accept that everything is your fault, you stop being a victim of your business and start being its owner.

The Ownership Mindset

This isn't about beating yourself up. It's about taking radical ownership of your business. Here's what that looks like:

1. Stop the blame reflex

When something goes wrong, your first question shouldn't be "Who screwed up?" but "How did I create a situation where this could happen?"

2. Look for patterns

If you're having the same problem repeatedly (high employee turnover, cash flow crunches, missed deadlines), that's a system problem. And guess who's responsible for the systems?

3. Accept the uncomfortable truth

Some problems exist because they're serving you in some twisted way. Maybe having "irreplaceable" employees means you don't have to document your processes. Maybe constant firefighting makes you feel needed.

4. Focus on what you can control

There are a million things outside your control. The economy. Competitors. Pandemics. But there are a thousand things within your control. Focus there.

My Most Painful Example

At one point in my journey, I spent a year replacing half my leadership team. That came after years of frustration with them not taking enough initiative, not building proper systems, not thinking strategically.

Then it hit me: I had hired people who were great at their previous level but couldn't grow to the next. I had failed to set clear expectations. I had allowed firefighting to be rewarded over process-building.

It wasn't their fault. It was mine.

And once I accepted that, I could fix it. Not by demanding they change, but by changing myself, my expectations, and sometimes, yes, my team.

The Power of "My Fault"

Start saying these words: "That's my fault."

Lost a client? "My fault for not delivering more value." Cash crisis? "My fault for not watching the numbers."

It's liberating. Because once you take the blame, you also take the power to make changes.

Your Turn

Next time something goes wrong in your business, resist the urge to blame others. Instead, ask:

The most successful business owners I know aren't the smartest or the luckiest. They're the ones who take 100% responsibility for everything in their business - good and bad.

It's not easy. But it's the difference between staying stuck and breaking through.

In this episode of the Small Business Black Holes podcast, Alan Pentz shares his insights on why proper financial tracking is the "dirty secret of entrepreneurship" that many business owners avoid.

Whether you're struggling with receipts, wondering if your gross margin is sustainable, or just need clarity on your business finances, this episode provides actionable advice for entrepreneurs at any stage.

Key topics covered:

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