Rich Dad Education Blog

In some circumstances, an entrepreneur’s idea is so revolutionary that their new business has no real competition. While this scenario is rare, it is still conceivable. The challenge then becomes educating the public and convincing people that their business fills a need or desire. And once their novel idea has caught on, would-be competitors are sure to start springing up all over the place, using gimmicks and running tempting specials with the aim of stealing away your established clientele.

Most new business owners give considerable thought to starting and running their new business; however, there are things that never cross their minds. These are the intangible aspects of operating a successful business, and the details can make or break you. No article could be written which could address the multitude of points to consider, so we will start with a basic first step: making a good first impression.

We have all heard the admonition, “One never gets a second chance to make a first impression.” Truer words have never been spoken. I once read someplace that it takes seven meetings in which an impression, contradictory in nature, to the first impression is given before a person can change his or her mind about someone or something. While this can be good news to someone who made a great first impression but bombed on the second meeting, it illustrates the importance of getting it right the first time!

Before the First Meeting

While some are naturally charismatic, poised, and influential, most of us have to put some work into presenting ourselves in a favorable light. The best way to do this is to:

• Ask yourself what impression you wish to convey
• Devise a strategy for achieving the desired result
• Rehearse all aspects of the strategy until you can implement it smoothly and comfortably

The Impression You Wish to Convey

The first two components one should strive to incorporate into a first impression are universal and crucial regardless of the nature of your business, while the third will require some reflection and insight:

• Competence. Everyone wants to do business with someone whose ability they can trust
• Integrity. People also want to be able to trust the character of the people to whom they are entrusting their patronage
• The specific needs unique to your clientele. To determine these needs, you must understand the individuals who make up your target market. For example, would affordability appeal, or would they be drawn to more luxurious or exclusive options, and be willing to pay accordingly?

Perhaps the consumers value environmentally friendly alternatives to the status quo, or do they care more for convenience than conscientiousness? If you are unsure of your consumers’ preferences, make it your priority to find out. Do your research. Conduct surveys, or informally poll friends and acquaintances for their opinions

Once you have done extensive research to determine who your target market is and what they want and need, find out about your competitors to determine where they fall short. Learn how to position yourself in such a way to fill in those gaps. Once you have committed yourself to doing business in this manner, consider how you can communicate to a potential client. Be comprehensive and concise, and devise a way to convey the superiority of your product or service without criticizing your competition or sounding arrogant. Practice your pitch until you are satisfied that you have nailed it; you should sound confident and knowledgeable, but not rehearsed. When rehearsing, enlist the assistance of someone who can ask questions to help you become more comfortable with being put on the spot.

Avoid the tendency to sound like a high-pressure salesman. While your job as an entrepreneur involves a degree of salesmanship, that fact should never be in the forefront of a person’s mind when he or she is engaged in a conversation with you. Customers should get the impression that you are making yourself available to answer their questions and provide information to help them make up their minds whether or not they would like to do business with you. Know your ideal customer’s needs, know how you can meet them, and practice communicating your value in that respect in an effective way. But leave the hard selling to car salesmen.

The First Meeting
The First Seven Seconds.

While we may tell our children that you cannot judge a book by its cover, we all do it on a daily basis. Studies have shown that the most important part of a first impression is formed within the first seven seconds. This means that, like it or not, your appearance is a crucial part of a first impression.

• Pay close attention to grooming. Be freshly showered and have neatly trimmed, combed, and conservatively styled hair, brushed teeth, fresh breath, and clean, trimmed fingernails. Men should be clean-shaven, with any facial hair trimmed and tidy
• Dress appropriately. Dress professionally and in a way conducive to the impression you are trying to portray. Now is not the time to strive to look unique; in fact, any consultants to fledgling entrepreneurs teach that standing out in appearance in any way is a serious strike against a business person. Your clothes should be carefully selected and properly laundered or dry cleaned. If you are uncertain as to how to dress for a specific occasion, purchase a book on the subject
• Develop good posture. Your posture is the way you share your opinion of yourself with the world. Stand up straight, put your shoulders back, and hold your head high
The Greeting
Once you have made your initial impression, the next couple of minutes are the most important.
• Make eye contact. Doing so lets someone know that he or she has your attention
• SMILE! It is impossible to present yourself as a friendly person if you don’t wear a genuine smile
• Introduce yourself in a clear voice. “Hello, I am…” Use the appropriate volume
• Give a brief, firm handshake. Your hand should not be limp or fingers loose, but neither should you squeeze so hard that it seems as if you are trying to assert yourself. Release the hand before continuing to speak past your introduction
• Remember the name. Use it often in the conversation to follow
The Conversation
• Treat small talk as an opportunity to gather information. Take mental notes, and use those notes later in the conversation if the opportunity presents itself. If the person is an important potential client, take actual notes as soon after the meeting as possible, and review them often for information that may prove useful to you
• Take care to use open body language. It has been said that up to 93 percent of communication is nonverbal, which means that one’s body does the majority of the talking! Keep your arms and legs uncrossed, your head up, your body positioned directly toward the person with whom you are speaking, and eliminate any fidgety body movement
• Maintain eye contact. This lets the person know they have your undivided attention. It also makes you appear more honest and trustworthy
• Speak and listen. Answer any questions fully, but do not monopolize the conversation. Never interrupt when someone else is speaking
• Speak as one who is intelligent and educated. Speak smoothly and use proper grammar, and avoid the use of slang. Do you remember Audrey Hepburn’s character, Eliza Doolittle, from the movie My Fair Lady, and how drastically her image was transformed simply by refining her speech? If you find yourself in need of some assistance in cultivating the way you speak, consider purchasing one of the many programs available for helping one polish and refine his or her speaking habits. It is a worthwhile investment of your time, money, and effort
• Show the appropriate level of enthusiasm. Others cannot be excited about the products and services you offer unless you show that you are
• Use reflective listening. When appropriate, nod, respond with facial expressions, say, “Mmmhmm,” or otherwise let the person know you are listening. It also helps to find occasions to repeat portions of what he or she said. “I agree with your earlier statement that…”
• Be conscious of your words. Pay attention to what you are saying at all times. Be careful with the humor you choose to use and use it in moderation, as it is difficult to be absolutely sure you are not risking offense to someone or creating a negative impression of yourself
• Read cues and respond accordingly. Adjust your approach if someone seems uncomfortable, proceed if someone seems interested receptive

The Farewell

Be willing to end the conversation whenever the person with whom you are speaking indicates that he or she has no further need of the conversation. While he or she may be direct: “Well, thank you for your time. I will get back to you soon with my decision,” it is equally likely that the potential customer may not know how to gracefully end the interaction. If you notice your acquaintance checking the time, looking around the room, fidgeting, or ceasing to actively engage in the conversation, wrap up your end of things. While you definitely do not want to seem abrupt, from the time it becomes apparent that this is the stage of the conversation you are in, you should have smoothly ended the conversation within 30-60 seconds. If you are the one moving to end the conversation, however, allow much more time. Ask if they have any further questions, and if so, answer them fully. If not, take a couple of minutes to say goodbye when appropriate.

When saying goodbye, use the individual’s name. Express that you enjoyed talking with him or her. Offer another handshake, and thank them for their time. Now is also a good time to give a business card and express your willingness to be available in the future if there is any way you can be of assistance. Do not underestimate the importance of making a smooth exit from conversation, and do not neglect to practice doing so when you are rehearsing for successful interaction with prospective clients and business contacts. As Lillian D. Bjorseth says, “Your last words are as important as your first words.”