THE PSYCHOLOGY OF BUSINESS SUCCESS (PART 2)

How to Look, Act, and Be the Part

Your appearance, actions, and attitudes affect your success in business. Experience has
proven this over and over again. How you look, behave, and project yourself has an impact on
the people you meet and work with. You can make your impression on them positive or an
experience they would sooner forget.

Each element — appearance, actions, and attitudes — should reinforce the other, and no
single element can substitute for the others. It isn't adequate, for example, to rely on the old
belief that "clothes make the man", because we are much more than whatever we cover our
exteriors with. We have thoughts, feelings, insights, behavior patterns, points of view, and skills
and talents, all of which, combined with our physical appearance, "make" us what we are.

Also, as entrepreneurs we are made with certain characteristics — with an inner drive toward
something better than what we have. With desires to create, to organize and develop, to direct,
to prosper beyond the norm, and to fulfill ourselves in a way that no one, not even the most
wise and benevolent employer or government, can provide for us. That's the real inner make-
up of an entrepreneur.

On top of that inner make-up, there are external factors that successful entrepreneurs have in
common. These are standards of appearance and behavior, which, along with correct
attitudes, will help to strengthen your identity as an entrepreneur.

Look the Part

When you meet professional people, you should wear a prescribed "uniform". Beyond this
uniform, there are other possessions that you should have or be working toward having. If you
have none of them today — not even the recommended wardrobe — then you should begin
to cultivate some basic habits of money management that will make having those things
possible.

Entrepreneurs are masters at what used to be called the "husbanding of resources". In the
early days of American entrepreneurship during the 1800's, small business owners developed
their ventures largely through thrift and sound management of money and materials. They
often built their businesses from very little, and they succeeded because they were exceedingly
prudent and disciplined in how they spent their time and money.

Today, however, the attractiveness of the affluent society — in real life and in the media —
and a general "credit mania" has encouraged many of us to live beyond our means. If you are

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PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2 - 1 All Rights Reserved.
caught up in this trend, you must master it before you can be successful financially. The most
productive first step you can take to become an active, disciplined entrepreneur is to assess
the undisciplined ways in which you spend money. In other words, make a list of all the ways
you "blow" money and put an annual price tag on each. Such expenses include:

1. Whimsical purchases (knick-knacks, car accessories you don't really need, novelty or
"impulse buy" items peddled on television through 800 numbers and home shopping
channels, etc.). Just spending time browsing the internet can be very costly.

2. Vices (smoking, alcohol, drugs, overeating, gambling, etc.)

3. Business expenditures not directed toward your specific goals.

4. Mistakes (business and personal).

Cease making such wasted expenditures as best you can, get yourself out of debt, and re-
direct your funds to finance any improvements in appearance you may need to make. Your
appearance makes a statement about you. If that statement conflicts with what you say and
do, your credibility will be reduced.

Wardrobe

The following attire is the basic and accepted "Business Uniform", which you should wear
when you meet bankers and other lenders or any other business professional (accountant,
attorney, business owner) whose assistance you need or who is a key figure in your business
plans.

Men

1. The Business Uniform (for the look and feel of success)

a. Business suit
i. All wool
ii. Dark color: navy or charcoal — solid or pinstripe
iii. Cleaned and pressed
iv. (these convey conservatism and dependability)

b. Dress shirt— white (best -projects honesty), eggshell, or pale blue

i. Stays in collar

c. Tie
i. Silk
ii. Color: primarily maroon and/or navy
iii. Pattern: stripe, club, paisley, or solid

d. Jacket pocket handkerchief — silk (optional in Midwest)

i. Color and pattern: coordinated or compatible with tie

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 2

 e. Socks
i. Calf-length Must Have Asset # 1
ii. Lint free If you don’t already have a
iii. Color: black
Business Uniform – GET ONE!
f. Belt — leather with a conservative You don’t need the most expensive
buckle
designer labels. Conservative and in-
i. Color: black
good-taste are the watchwords here.
g. Shoes — laced, thin-soled, no worn
soles or heels Color: black Good buys can be found at bargain
outlets such as Marshall’s, Ross, 3-Day
2. Showered and clean-shaven Suit Brokers, TJ Max or Manufacturer’s
Outlet Stores.
3. Hair and nails trimmed
The best buys we have found are at
4. Breath mints before meetings Macy’s and some other fine
department stores during their 50-50
Women
sales.
1. The Business Uniform (for the look and
feel of success) On most Monday holidays, Macy’s takes
50% off the price and then another 50%
a. Tailored suit off that price at the register on a large
i. All wool assortment of items including all of the
ii. Dark color: navy or charcoal business uniform components.
— solid or pinstripe
iii. Cleaned and pressed
iv. (these convey conservatism and dependability)

b. Dress blouse — white with white tie (bow)

c. Shoes
i. High-heels
ii. Color: Black or navy

2. Showered with light make-up

3. Hair styled and nails manicured

4. Breath mints before meetings

You should modify the above basic uniforms to fit your geographical region. Mountain and
West Coast states, for example, tend to be less formal. However, doing business in large cities
in any part of the country will require stricter adherence to the dress code than in small towns.

Likewise your profession may alter your business uniform. If you're applying for a loan to buy
a machine shop which you will be operating yourself, you should wear a business uniform
which is more consistent with the image of a tradesman — perhaps a sport coat and dress
pants instead of the classic 3-piece business suit. If, however, you're an entrepreneur with

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 3

multiple business interests and are buying a machine shop which someone else will operate,
then you would more likely wear the traditional business attire.

Certain high tech industries pride themselves on a non-conformist business culture. The
successful entrepreneur in such an industry may typically dress down with simple boots, jeans
and a tee shirt or dress up in very expensive highly styled casual attire. So a wise entrepreneur
researches his target industry and dresses according to the expectations of success in that
field.

Before you build or add to your wardrobe, pick up a copy of John Molloy's Dress for Success
or Women’s Dress for Success. These books are periodically revised and remain the foremost
authority on proper business attire. The book's recommendations are the result of interviews
and studies made with successful business people around the country. It has been updated
and expanded since its original printing, and, among other things, it will tell you much more
about appropriate business dress in your particular region.

Transportation and Residence

After you take on the essentials of the entrepreneur's appearance — business uniform and
professional poise — you can set your sights on adding (if you don't already have them) the
following non-essential items:

1. An upscale automobile — late model, classic or prestige type, but not flashy (an
S-Class Mercedes-Benz, for example, instead of a Corvette)

2. Prestige living accommodations.

These items are non-essential because they don't have to enter into your business life. For
example, you'll meet your banker at his branch office, a business owner at his business, and
other business professionals at their offices. Or you may rendezvous with any of them at a
restaurant. What kind of car you drive or where you live doesn't have to enter into it. If you
already have a status automobile and/or residence, or once you obtain either, you can use
them to solidify your business relationships because they reinforce your image as a successful
person.

However, don't feel handicapped if you don't drive a Mercedes or Range Rover or live in a
posh neighborhood. Many entrepreneurs get into their first businesses under relatively modest
circumstances (and some under downright deprived circumstances) and then use their
businesses to improve their living conditions and add those amenities that give them the look
of the entrepreneur.

Spending money to look the part is not a selfish extravagance to an entrepreneur. It is an

investment in a success image that will pay big dividends. “Everyone loves a winner.” People
love to share in the success of others. Your success image can act like a magnet attracting to
you the very people whose resources you wish to leverage.

Look Like a Million for a Thousand: Since this is a course on creative finance, this might be
a good time to introduce an innovative method for obtaining prestige living accommodations
without very much cash, even if you have little or no income.

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 4

There are companies in most major metropolitan areas that provide what is referred to as a
“house fluffing” service to the real estate brokerage community. Brokers know if a house is
vacant it will take several months longer to sell and will sell for a lower price than if it were
occupied. These house fluffing companies (usually small, run by an entrepreneur and maybe
one assistant) specialize in finding and screening “resident managers” to occupy and maintain
these otherwise vacant homes until they sell.

The resident manager is responsible for “decorating” the house with his/her own furniture and
other household items in such a manner that the house “shows well” leading to a quicker sale
at a higher selling price. If you have, or are
willing to acquire the appropriate upscale PRINCIPLE # 1
furniture and home accessories, you There is an important principal at work in
probably can qualify to become such a this illustration:
resident manager.
People have everything you want.
You will pay a monthly fee to the company And, they will give you what you
that places you in the home that will be a want if you give them what they
small fraction of the monthly rental value or want.
mortgage payment on the home. Imagine
living in a home with 5 bedrooms, a pool and Cash is certainly something people want,
a tennis court in the best neighborhood in but there are other ways to give them what
town, valued at 1 or 2 million dollars for less they want. In this illustration, you provide a
than $1,000 per month. service using assets that you already have
to help someone who owns a prestige
There are some obvious downsides to this home sell it quicker and for a higher selling
arrangement. However they can be handled price. They in turn will give you the use of
and this could be a great way to create a that prestige house until it sells, which you
successful image with potential business can now use to enhance your success
associates. image.

If you would like to explore this possibility, contact some real estate brokers in an upscale
community where you would like to live and ask them if they work with anyone to “stage” or
occupy vacant listings. If no one is doing it, maybe it’s a business you might start at the same
time you use this process to establish your own new residence. For more detailed information,
call the AdvisorLine™ at 1 (805) 497-1000.

Act the Part

Acting the part of the entrepreneur comes easiest when you have altered your opinion of
yourself so that your actions naturally and spontaneously reflect your self-image. This is why,
in "The Psychology of Business Success (Part 1)", we talk about your self-image and how to
improve it.

Even if you don't yet feel like an entrepreneur, you can begin to act like one. Speak and behave
in ways that a successful entrepreneur would. For example, consider the following situation.

Some of your friends want you to join them on a weekend trip out of town, but you don't have
the money for it or you don't want to spend the money because it would mean sacrificing
something more important to you or going into debt. So you decide to decline. Instead of
saying— to yourself or to them — "I can't afford it", say: "It's not in my budget".

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 5

Take a moment and say those two sentences to yourself. Notice the effect each has on you
emotionally. When you say "I can't afford it", you reinforce feelings of lack, and you weaken
yourself. You may even feel yourself get a little depressed or sick when you say it. But when
you say "It's not in my budget", you feel more in control. You've taken command of your life
and put yourself in charge. Whether you have the money or not doesn't matter. What matters
is your attitude toward yourself — regardless of how much money you have.

Learn how to set and live within a budget. After all, if you can't live within a budget personally,
how will you ever run a successful business? Be willing to evaluate your expenses. Avoid those
which drain your finances and which do little or nothing to move you forward in your progress
toward owning or expanding your business. This is one of the ways entrepreneurs build wealth
from little or nothing. By disciplining themselves to operate their lives like a business. By doing
the most with what they have, no matter how little it is. By reminding themselves that short-
term sacrifices produce long-term gains.

Posture

Modern-day stress, soft couches, lack of exercise, and plain laziness all contribute to our
tendency to slouch (concave chest and rounded shoulders). Slouching is not an image you
want as an entrepreneur, because it projects a poor self-image and fails to inspire other people
to have confidence in you.

In contrast, standing up or sitting up straight is a trademark of people who feel good about
themselves and who convey an image of professionalism, optimism, and poise. To assume
good posture (whether you're sitting or standing), arch your lower back slightly. You'll feel your
chest lift up and your shoulders go back. Next, notice the position of your neck and head. Does
your head hang forward (and tense up the trapezius muscles in the upper back and neck)? Or
is your head positioned directly over your body so that your neck and shoulders are relaxed?
A "head held high" reflects the healthy posture of an entrepreneur who is self-assured and in
control.

Other Ways to Act the Part

Make your conversation straight-forward, simple, and clear. Eliminate street talk from business
conversations. Be authoritative about what you know and humble about what you don't know.
("Let me check it out and get back to you on that" should be your response if you can't answer
a question. Don't ever try to "snow" anyone.) Maintain a sense of good will and good humor
with the people you meet. Be cheerful and gracious.

Cultivate relationships with people who can work with you in advancing your plans for your
business. In the Bizar Financing Section J on "Financial Institutions", you'll find a supplement
called "How to Shop for a Bank", which lays out a procedure for building a solid relationship
with your banker. One recommendation is to take your banker to lunch two or three times a
year. This gives you a chance to strengthen your relationship and discuss your business plans
in a setting where pressures of the banker's office are not present. You should do the same
with your attorney and accountant. Make all of these professionals part of your team.

If you discover that you have common outside interests, participate together once in a while.

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 6

Take them to a play or concert or ball game. Play tennis or golf together. When you can afford
it, join a club to expand your business contacts and to have a place to entertain your business
team (attorney, accountant, and banker) or prospective business clients.

An excellent way to develop good financial contacts, especially if you're starting a business
that will require private investors, is to Do Charity Work. Pick one that appeals to you
personally and volunteer as your time allows. You'll eventually rub elbows with some of that
charity's wealthier supporters, and once you've cultivated a relationship, you'll be in a position
to get their feedback on your business plans and, if it's favorable, ask them to consider
investing in your project.

Don't assume that wealthy charity volunteers will necessarily look rich, either. In fact, chances
are that they'll show up to do charity work in casual dress, and only through conversation will
you discover what their status really is. Meet people naturally and don't be pushy. This is why
the charity you volunteer for should be one you're genuinely interested in, and any financial
contacts that come from it will be fortunate by-products of your honest commitment.

Another source of private investors is politics. Helping candidates or a specific party will also
put you in contact with the shakers and movers in your community. Helping with fundraising
especially pays off because you get to find out who the big givers are. Big givers are frequently
big investors.

Be the Part

Education: The Information Age we live in requires periodic upgrading of knowledge in fields
related to your business. In whatever area you lack knowledge or skills, be willing and prepared
to learn and apply.

Finance: While Bizar Financing gives you a thorough education in leveraging and creative
financing strategies, there are everyday financing concerns in a business which you may want
to know more about; budgeting (for your particular industry), cash management, collections,
etc. Consult your industry's trade association or your library for more information. Or call a local
college and enroll in an accounting class.

Management: "The Psychology of Business Success (Part 3): The Four Personality Types"
will give you useful insights into how to communicate with and manage people. For specific
management techniques, read The One Minute Manager, by Drs. Kenneth Blanchard and
Spencer Johnson. It contains probably the simplest, most effective principles of management,
and is also available with accompanying audio. You should find other management advice in
the "Business" section of your local bookstore. Researching online puts the world of published
knowledge at your fingertips.

Leadership: Leadership is different from management in that as an entrepreneur you don’t

always want people to do what you tell them. Sometimes you want other entrepreneurs, who
would never do what you tell them, to follow your lead. The 21 Irrefutable Laws of Leadership
by John C. Maxwell contains straight forward easy to understand principals that can simply
improve your leadership skills or build them to world-class status.

Motivation: Motivational training is helpful if you are in a slump personally or if your staff (most
often sales staff) needs an emotional boost. When all is said and done, any lasting motivation

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 7

has to come from within you or from within your staff
members. However, periodic motivational seminars can PRINCIPAL #2
provide the psychological equivalent of a vitamin B-12 Remember at all times…
shot and may therefore be worthwhile to help you over a that from now on…
short-term crisis. Just don't get addicted to the idea of You Are An
needing someone else to bail you out of a bad emotional
Entrepreneur.
or economic state.

Speaking Skills: Few people think about how important An entrepreneur is a person
good speech and a good voice are to making favorable with a dream that leverages
impressions on people. And yet poor articulation, bad other people’s money, assets,
grammar, and a thin, nasal, or grating voice can hamper time, talent, knowledge, and
business relationships. ability and orchestrates them
to the fulfillment of that dream
The prevalence of good voices on radio and TV every day in the real world.
of our lives has conditioned us to respond more favorably
to people who sound good and speak well. Record yourself in casual conversation with
someone else. Then listen. Are you understandable and do you sound good? Is your
conversation clear and articulate, or is it laced with "ahhs" and "you knows" and "I don't
knows"? Is your voice strong and commanding of attention? If it isn't, pick up a copy of Change
Your Voice. Change Your Life by Dr. Morton Cooper and learn how to make a "sound"
impression on people. You may even want to learn about public speaking if you have expertise
that you can share with others.

Self-awareness: This is probably the largest category of personal development training since
"EST" and similar programs emerged in the 1970's. During the 1980's, many of these seminars
were modified for use in the business community. Companies often enroll management
personnel to improve their abilities to solve problems, administer more effectively,
communicate with workers, etc. Through the decades, these types of programs are more
numerous and more powerful than ever before.

Some of the best "do-it-yourself" methods are in books by Dr. David Viscott, the popular radio
psychiatrist, who has written a self-improvement course that's ideal for entrepreneurs called
Taking Care of Business. You'll find it in your bookstore along with other personal development
books derived either from seminars or various kinds of therapy.

Industrial and Technical Knowledge: Your own experience is the best measure of your
competency and “currentness” in this area. If you hear in casual conversation or in the news
about new products, techniques, or trends in your industry, it's time for you to subscribe to one
or more trade journals or websites that can keep you up to date in your particular field. These
trade media may also contain advertising for correspondence or web-based courses that may
be of benefit. Before you buy, ask questions so that you know you'll be receiving information
you really need.

Reading and Memory Skills: Learn how to skim books, journals and web pages to find
information you need quickly. Take a course in memory training if you're weak in that
department. Learn about library and web research if you've forgotten what you learned in
school or never had any research training.

Experience: The more work experience you have which is directly related to the type of
business you plan to start or buy, the greater your chances of success in the business. Be

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 8

willing to apprentice yourself or work at a reduced rate (an offer an employer can't refuse) if
you want to gain experience in a field that's new to you and which you want to be involved in
as an entrepreneur. If you're buying a business and the seller obviously knows more about it
than you do, arrange for that seller to stay on for a period of time and share their insights with
you.

Unless you were born with entrepreneurship in your blood and never worked for anyone but
yourself (the type who opened their first lemonade stand at age 4), then you can be an
entrepreneur only as a result of experience. Training and education can set you in the right
direction, but being an entrepreneur means operating with a set of attitudes that usually
develop only as a result of doing. The more you operate in the business world, the more your
applied book learning will become second nature, and the more you will be the part.

As you do those things necessary to look, act, and be the part, you will soon find yourself living
the part. Approach each day with the confidence that you can accomplish your objectives, and
that belief in yourself will make your goals happen.

PSYCHOLOGY OF BUSINESS SUCCESS (PART 2) A2- 9