Helping the entrepreneur understand conversational clues during a meeting with a potential investor

When you and the potential investor first meet there will be an immediate automatic and elemental probing. Elemental or if you prefer, fundamental – despite the veneer of civilised behaviour. Much of this is unconscious and some is conscious. It starts with the handshake.

Ever stopped to think about the purpose of the handshake? In history, it was a simple demonstration that your open hand didn’t hold a weapon. Thus you were non-threatening or at least hoped to be perceived as such. In business culture the handshake is a powerful and anticipated gesture. Anyway, moving on from that gesture, the talking commences.

• Whenever you speak, you're going to disclose something about yourself. Focus on the word ‘yourself’ please. Disclosing your plans is part of the meeting. Disclosing your state of mind is something else.
• The above might seem blindingly obvious. However, observation of entrepreneurs in dialogue with potential investors demonstrates that it isn’t.
• The way you phrase a question, the way you volunteer an opinion are clues for the wise potential investor
• The non-verbal style in which you speak (no, not a contradiction in terms) reveals to the potential investor almost everything there is to know about you.

The potential investor hears what you have to say and forms perceptions. These are influenced not only by the logic and sense of what you are saying but on the way you say it. Even so, no one should base total judgement and evaluation on that first impression.

Most people know how erroneous a first impression can be, especially when it is based on such slight evidence. Experienced potential investors might well hold off a little in order to gather more information. This gives them time to consider a response. However, don’t count on it. Not all potential investors behave in the same way. Some are overwhelmed with certitude and believe that they are excellent judges of character. Some are and some aren’t.

• Irrational though it may be, both entrepreneurs and potential investors tend to judge and evaluate others with great certainty during the first moments of communication.
• They claim to be using their intuition.
• However intuition is an unreliable friend.

The soft-spoken entrepreneur might be judged to be shy. Not necessarily a bad thing, but a useful illustration of cause and effect.

The verbally loud entrepreneur might judged to be aggressive or bold. Aggressive might be perceived as disadvantageous. The reverse might be perceived as attractive. You the entrepreneur cannot know for sure. However, both perceptions might be inappropriate. So:

• Speak in a voice neither loud nor soft
• Speak possibly at the volume of the potential investor.

The first impression, be it right or wrong is usually irreversible.

Extreme types of verbal expression can create unhelpful perceptions in the potential investor’s mind. Yes, they might revise their initial impression later on but first perceptions tend to be more enduring. Moreover they are difficult to shake and sometimes impossible to change.

How do you, the entrepreneur, know what to say in order to impress somebody else? It's easier said than done. The following rules will help:

• Try to communicate honestly about who you are, rather than trying to paint a favourable but untrue picture of yourself.
• Paint a false image and sooner or later you will be found out. So why place yourself into such a position?
• Avoid deliberately – or though inadequate preparation – painting that false image
• An inappropriate image inevitably proves embarrassing in subsequent meetings
• Don’t strive to prove a point today that will mean nothing in the long run.

If you want to talk to the author then please phone Howard Popeck on 07870 192618.

Link

http://www.go-between.co.uk