What is the secret to being smart in business (and life)?

Welcome to Impact Thinking.

Hi, I’m Peter. I’m a full-time solopreneur. I’ve run a one-person strategy consulting company since 2019. Before that, I worked in finance & strategy at Harvard. This newsletter distills helps you become an impact thinker. Ditch the noise, spot the signal, and think with impact.

Read time: 4 minutes

What is the secret to being smart in business (and life)?

The single biggest mistake I have made throughout business (and life) is wasting energy trying to prove I’m smart.

There is a fundamental difference between projecting smart and doing smart things.

This misguided pursuit is fueled by ego mixed with a lack of proper understanding of why it matters to be “smart.”

As for the ego, I’m working on it.

But for the lack of proper understanding, I see an opportunity to gain clarity and redirect energy to the correct type of progress.

And progress equals happiness.

Like many, I would associate being smart with sophistication, complexity, and above-average intelligence. Interestingly, if you ask people if they consider themselves smart, I’d bet the majority would answer ‘yes.’

This is where the math doesn’t add up - being above average implies being in the minority, not the majority.

These two points may seem unrelated and anecdotal, but until I sat down to write this post, I hadn’t grasped my own confusion.

And unfortunately, this confusion has led to wasted energy.

So, let me save you the trouble and share the secret to being smart in business (and life) so you stop projecting and start being.

Being smart isn’t about sophistication; it’s the ability to simplify complex matters and effectively implement simplicity to drive progress.

This applies most to business for me and probably for you too.

As a solopreneur and natural problem-solver, I run head-first into complexity. But there is a big difference between solving for complexity and operating with complexity. If I operate with it, I’m setting myself up for failure.

Making smart decisions is the root of progress, and I can only achieve this by embracing simplicity.

I’ve done a disservice by intentionally inserting complexity as the mask of sophistication.

Smart means simple.

It’s worth repeating in different words: being smart requires you to implement simplicity.

Thinking and deciding are essential prerequisites, but implementation is paramount. I cannot claim to be smart without ruthlessly pursuing simplicity.

And my business is full of complexities:

• Convoluted processes with too many steps for the output they generate

• Inefficient tasks that drain energy and cause unnecessary frustration

• Confusing messages that deter customers from buying my services

• A long list of items that I want to learn but have yet to prioritize

• The misconception that “more” is always better

I’ll stop there for now.

I started to notice the breadcrumbs of simplicity about 7 months ago, especially when observing the behaviors and habits of successful solopreneurs:

• Creating repeatable templates and processes

• Communicating with clear, concise language

• Leveraging frameworks and systems

• Eliminating unnecessary noise

• Actually doing less

These 5 habits are easy to understand, but they don't hold tangible meaning until you’ve done the opposite. I’ve been operating under the wrong lens of being smart…just grinding away.

Now armed with the awareness, the next most important question is: how do I create and implement simplicity?

There are 3 ways to create and implement simplicity:

1. DIY (Do It Yourself): I can use my critical and creative thinking skills to build simple solutions. This approach spends time to save money. It means making mistakes, but I gain broad experiential knowledge that compounds in other areas.

   I’d consider this approach as investigative research or experimentation and iteration.

2. Borrow: I can shorten the process by adopting someone else’s proven simple formula. This approach spends money to save (some) time. It means sidestepping self-inflicted mistakes while still building muscle memory because implementing the process is still on me.

   I’d consider this approach as working with a coach or purchasing a course or guide.

3. Buy: I can fully leverage the expertise of a professional to do it for me. This approach spends money to save time. It means I wouldn’t have to worry about anything other than ensuring the results meet my expectations. And I could repurpose the saved time in other areas.

   I’d consider this approach as hiring a freelancer or consultant to do the work for me.

Why does being smart matter in the grand scheme of business?

Simple is the key to long-lasting success.

Success is the sum of making smart decisions, consistently showing up, and adapting to feedback without ever giving up.

Success = smart moves + consistency + persistence

• Simple is smart

• Simple drives consistency

• Simple enables persistence

Remember, it doesn’t matter which path you take to create and implement simplicity: DIY, borrow, or buy.

The key is to recognize that being smart requires you to implement simplicity.