Street smarts you need to hone as an entrepreneur

A critical skill that entrepreneurs must-have for success is street smarts. This skill, although difficult to define, is quite easy to spot in one who possesses it. Street smarts enable one to anticipate and deal with daily problems associated with running a business.

Some people may refer to street smarts as savviness, gut instinct, common sense, or survival skills. One thing is clear: a person who is street smart:

·         Has keen awareness of what is going on around them and how to take advantage of the situation.

 

·         They’re always collating, analysing, searching for and assessing opportunities and threats to their business.

·         Street smart people also have intuitive ability to read people and act accordingly. They can tell when a person is genuine, when there’s more than meets the eye, and people’s underlying motives.

Regardless of how far from the streets one is, “street-smarts” is a skill of great value in all aspects and walks of life. People argue that one can only become street smart through “being in the streets”. Being street smart is mostly born out of experiences, both good and bad. For example, a business person who has been scammed before is likely to be more cautious with their investments.

However, you can develop your street smarts without being down in the trenches. Here are some helpful tips:

1.   Work smart, not hard

Entrepreneurs take pride in being hardworking, sometimes to the detriment of their personal lives. Small business owners have the tendency of working long hours, gradually allowing work to take over their lives. Street smart business owners seem to always get more done, with more favourable results – all without putting in as much hard work. What are their secrets?

Well, first they know that the business is a means to an end. They know when it is time to work, and when to stop. They have mastered the art of delegation – especially for time-consuming admin work. They also create repeatable processes and automate certain business tasks.

Additionally, street smart business leaders identify the most productive time periods. For example, if you’re an early morning person, you can handle all your key tasks at dawn and use the later part of the day for more leisurely business networking.

2.   Polish your people skills

As an entrepreneur, you will find yourself interacting with people all day long – be it clients or customers, business partners, investors, or employees. To get the most from every interaction, you have to develop and polish your people skills.

To win people over, learn how to be empathetic. Don’t worry if this doesn’t come naturally to you - you can develop the skill over time. Try to put yourself in the other person’s shoes and see the situation from their perspective. Don’t be afraid to ask questions to help you see the other person’s perspective. Doing this right will help you determine people’s motives, predict their reactions, and forge strong relationships.  

Other people skills that will come in handy include being a good listener, being patient, making a good first impression, and adaptability.

3.       Focus on both the trees and the forest

A smart business leader knows that they need to focus, constantly improving their business processes as well as keeping an eye on the industry and the market as a whole. They study their competitors, analyse what market trends mean, and accordingly evolve their business products or services.

One crucial task that smart business owners don’t delegate is managing their company’s cash flow. They always have a good grasp of where every penny is going, when they break even, and always maintain a cash reserve for emergencies. Even if you dislike financial management, it is important that you adopt a positive attitude towards it to be a successful entrepreneur. It doesn’t take a financial genius to manage money properly – just discipline and relentless focus.

4.   Understand that almost everything is negotiable

Are you the kind of person that pays the sticker price for everything? Then you might be missing out on opportunities to save your business thousands of shillings. A smart entrepreneur understands that almost everything is negotiable – from the rent for the business premises, prices quoted by suppliers, employee salaries, investor demands and so on. In fact, every conversation in business is either geared towards enhancing awareness or negotiating.

Take time to develop your negotiation skills. Before you start negotiating, consider the dynamics of the deal. What are the motives of the parties involved? Which one of the parties has leverage over the other? Who wants the deal more? What are the alternatives the other party is considering? Establish what you want to get out of the deal, the compromises you’re willing to make, and what you are not willing to accept.

Street smart entrepreneurs also understand the power of making the first offer. This enables you to set the initial terms of negotiation, which leaves the other party feeling their offer has to be close to yours. Whenever possible, seize the negotiation table by making the first offer that favours your interests. If the other party makes the first offer, always negotiate for better. Regardless of what they say, most people have room for negotiation.

5.       Don’t get easily intimidated

A street-smart entrepreneur knows how to maintain an unruffled exterior, even when under pressure. They are assertive and aren’t afraid to clearly state their expectations in every relationship.

To increase your street smartness, understand that the business world is highly competitive. Even when you feel lost, be careful not to give off those vibes. Remain calm and confident as you look for solutions to your problems.