Street-Smart Wisdom for Entrepreneurs and Leaders

 

Success in the real world, especially in the business world, requires you to be street-smart rather than just book smart. Street smartness is vital because in the real world, there is no structure. There are so many variables, and those variations when combined in different ratios yield different results (ditto, success or failure).

For example, a new competitor may join your niche and they come with a limitless budget. Can you sniff out their Achilles’ heel and beat them at their own game? Can you read the personalities of their key team members and react proactively? Can you leverage your network to remain in business despite the bigger competitor out to muscle you out of the niche? Navigating these variables successfully calls for street smarts, which can broadly be categorized under effective communication, strategic thinking, solving problems creatively, and thinking adaptively.

We discuss below some specific, actionable tips that you can put to work in order to grow your street smarts and increase your odds of succeeding as an entrepreneur or leader in your field.

Everything is Negotiable (almost)

 

One way to boost your street smarts is to develop a mentality that nearly everything is negotiable. I know someone who even negotiates before booking an Airbnb after reviewing the listing and liking it!

Street smart people know that nothing is fixed in the real world. They therefore negotiate and secure a favorable position for themselves. For example, the rent for your premises is negotiable, so are employee salaries, and so are vendor rates. If you can’t negotiate on price, at least negotiate on the associated terms!

When you do that, you not only get to save money but also work out arrangements that suit the unique characteristics of your business. These little advantages eventually add up, and they can be the difference between struggling and thriving.

Have a Bias for Action

 

Street smart people know that action always beats inaction, every time. For example, when an opportunity arises to supply a large client that has published a call for expression of interest, street smart people quickly put together their bid, activate any connections they may have with that client, and swoop in to grab the opportunity. It doesn’t matter whether their paperwork is perfect or not, they just get on with whatever they have. Many times, this bias for action serves them well unlike people with lesser street smarts who remain undecided and postpone taking action.

Charlie Munger, Warren Buffett’s right-hand man aptly calls such inability to decide and act “thumb sucking.” Street-smart people don’t thumb suck, they act! They know that delaying to act will swing the advantage to other interested parties or competitors, and the world has no shortage of competition for every opportunity.

 

Guard Your Reputation

 

Your reputation always precedes you. Learn to cultivate, nurture and protect your reputation. If you have a reputation for keeping your word, people will trust you and open doors for you.

Street smart people have learnt to guard their reputation because it is often their bond. They steer away from situations that can damage their reputation, and they do whatever they can to enhance it. Customers, vendors, competitors, potential employees and everyone else always seeks to find out what your reputation is before they can deal with or do anything with you.

If your reputation is bad, you will find it hard to transact business with anyone because they will avoid you. If your reputation is good, a time may come when there is no shortage of willing people to transact or associate with you. And that, my friend, can be your key to success in business and in life.

 

Grow Your EQ

 

Emotional intelligence (EQ) is very vital to success in real life, and street smart people invest in improving their EQ. EQ is the ability to be aware of yours and other people’s emotions, and leverage those emotions for positive ends.

For example, an emotionally intelligent person can effectively convey their enthusiasm and passion to their team, and the whole group will work cohesively towards the attainment of a desired objective. Street smart people rely on their EQ to build and sustain beneficial relationships, solve problems whenever they arise, and build loyalty in their employees, customers and all stakeholders. Learn to be street smart, grow your EQ.

 

Body Language is Pivotal

 

Your body language communicates a lot, and street smart people know this fact. Have you heard the adage “the apparel maketh the man”? This ancient wisdom connotes that how you dress defines who you are. This is but one aspect of body language, and it is an important one because it can result into people getting a favorable first impression of you or dismissing you even before you say a word.

Body language refers to the non-verbal cues like posture, facial expressions, gestures and intonation while you speak. Be conscious about your body language because it often reveals your true intentions regardless of the words you speak.
That is why it is wise to be authentic, because your body language will mirror the words you are saying without you exerting any effort to control that body language.

Learn to leverage body language rather than not paying attention to it and it ends up working against you. Be street smart!

 

Take Official Lines with a Pinch of Salt

 

Street smart people know that in the real world, the official line can often differ by a wide margin from reality or the truth. People with book smarts immediately trust the official line and are often set aback when they later discover that the reality was far from what the official position conveyed.

Being street smart means that you go an extra mile and investigate the official line in order to ascertain that it is the reality. For example, haven’t you heard or read about institutions or corporations that are in financial trouble heavily publishing statements in the media affirming their “sound” financial health only to collapse spectacularly shortly after?

Street smartness calls for not falling for official narratives until you dig around and confirm that it is what they are saying it is. What you see or hear is not always what it appears to be!

 

Trust Your Gut

 

We have already mentioned that in the real world, you often don’t have enough information about something, or new developments can come up unexpectedly. As you go about your leadership or entrepreneurial journey, learn to trust your gut or instincts as valuable guides while navigating this rapidly changing landscape. The more experience you have, the more accurate your gut feelings or instincts are likely to be.

Of course you shouldn’t throw logic and rationality to the wind as you look to your instincts as your guide. Street smartness calls for paying attention to your gut, and using logic as well to make a decision that is best suited to the situation you are dealing with. Both logic and instinct have their merits, so learn how to benefit from both for greater success.

 

Learn to Read People Quickly

 

Street smart people have a seemingly uncanny ability to read people quickly and know whether they are BS-ing them or not. In business and in the real world, there are lots of people out to get you or take advantage of you, and it helps to cultivate the ability to read personalities accurately.

You can read to learn how to do this, and you can also learn from your experience with people in order to deepen your ability to quickly analyze personalities. Of course, don’t forget your instincts in this quest!

The better you get at reading people, the easier it will be for you to form the right connections, select the right partners (business partners or otherwise), and tweak your communication style in order to be more effective while interacting with people. That is an invaluable aspect of street smarts!

Being street smart calls for always expanding your comfort zone, being a lifetime learner and constantly adapting to the changing landscape. The tips above can help you with that, and your growing street savvy will point you in the right direction regarding what more you need to do. Remember, the real world rarely has structure, so start your journey now to become street smart and thrive in the formless world of entrepreneurship and leadership!