03 Sep 2015
Imagine yourself at a business networking event or at a dinner with a prospective boss or client. The waiter offers you a tantalizing assortment of drinks but instead of sparkling water or soft drink, you select a glass of red wine.
In your mind, it seems innocent enough and you presume that holding that glass of wine will make you appear more intelligent, successful, interesting or debonair to your potential boss or customer, right?
Unfortunately, you’re only 2 minutes into the night, and you may have already made your first rookie mistake – which could cost you your chance of landing your dream job, picking up a great new client or doing business with someone in the room.
So what went wrong?
We see images of alcohol being consumed in a business context all the time – sexy, successful men like Don Draper and Jordan Belfort, living the high life and partaking in alcohol to spark creativity, boost confidence, bond with colleagues or build rapport with clients.The association with fun, virility, worldliness and success has been deeply ingrained in our culture through print media, TV and Hollywood film.
Unfortunately, the association of alcohol with drunkenness (or at least impairment) is even more deeply embedded in the subconscious of your mind.In fact, even if you just see someone holding a glass of wine at a business networking event or on a social media site, it will likely reduce your assessment of their intelligence. Research proves that even a stone-cold sober person holding a glass of wine suffers an apparent 10-20 point IQ drop, not in real terms, but in the eyes of the observer.
Why Do We Unconsciously Judge People Who Consume Alcohol?
The “imbibing idiot bias” is documented in a 2012 study by Scott Rick (University of Michigan) and Maurice Schweitzer (Wharton – The University of Pennsylvania). Their work demonstrates, among other things, that subjects viewed holding a glass of wine at a business networking event were judged to be less intelligent and less appropriate for hiring. Conversely, participants who were pictured with a soft drink were viewed as more intelligent and more hireable.
These conclusions were further explored in a March 2013 Australian survey of 100 business owners who attended an after-business networking event. 71% reported having at least one alcoholic beverage, while 36% reported having at least two. Not surprisingly, the 36 respondents reported the least number of business cards exchanged and qualified leads gained. The 29% who did not consume an alcoholic beverage exchanged twice as many business cards and gained 41% more leads.
The “imbibing idiot bias” is an example of a phenomenon called “the priming effect.” Priming occurs whenever decisions and actions are predisposed, hastened or influenced in a particular direction by the context, visuals, emotions, or symbols presented.
Why is Priming So Damn Effective?
Priming works to influence and persuade because most of the drivers behind the choices and decisions you make every day happen primarily below the level of thought and consciousness. This means that all of us – executives, job candidates and business owners – are strongly influenced by intangible factors that largely go undetected by the rational parts of our minds.
Evidence of the priming effect is all around us – at work, at home and in the media.
It is the reason why presidents pose for photos while sitting behind a large wooden desk, surrounded by a flag, a photo of their family, and bookshelves full of leather bound books. Without saying a word, the context has already predisposed or influenced your opinion of their values, work ethic, and intelligence. And it also explains why voters tend to cast more politically conservative ballots if asked to attend polls in or near a church location, as opposed to those who vote near government or secular buildings.
Despite what you might think, alcohol and business don’t mix!We are conditioned to associate alcohol with cognitive impairment, and even when no such impairment is present, the association still sticks and we will automatically judge the person partaking as less intelligent and less suitable for doing business with.
In challenging economic times, where perception and first impressions can make the difference between thriving and barely surviving, it makes good sense to avoid alcoholic beverages when you are networking, interviewing, selling or posting in social media environments. In light of many people’s liberal views toward what they say/post online (all of which are very easy to access by an employer, recruiter, customer or supplier), this research could help you make the best impression possible in business.
Understanding how strongly the human brain is influenced and primed by subtle cues (such as a glass of wine or beer) can prevent you (or one of your team members) from unwittingly committing an act of reputation suicide at a business networking event.
Does The Imbibing Idiot Bias Also Apply To Social Drinks With Colleagues?
In sharp contrast to this, however, there have been several recent studies (*see research excerpt below) that seem to indicate moderate alcohol consumption may increase social bonding between team members and stimulate longer conversations.While alcohol and business networking, prospecting and interviewing don’t mix, there is some evidence that in the confined setting of drinks among existing team members in an after work social context, moderate consumption allows for increased social bonding, engaging conversation, camaraderie and positive displays of emotions.
There are also specific industries and certain cultures where alcohol consumption is more acceptable and in some instances encouraged. In fact many executives who specialize in doing business in Asia will insist imbibing is a must if you want to build relationships and do business in Asian countries.
Summary – Do Alcohol and Business Mix?
Under limited circumstances (i.e. team bonding, certain industries, specific cultures), alcohol and business may in fact mix.However, for those of you who are looking for jobs, clients, joint venture partners, suppliers etc,. it may still be very prudent to err on the side of caution and not indulge in front of someone that you are trying to make a good impression with. While a glass of wine or beer might taste refreshing for a moment, it may to curb your ability to attract leads, clients, positions, investors or partners. It should be noted that most of the research on this topic to date appears to be localized – it would be valuable to see more studies done in other countries and cultures where different associations may have been built up over time. These cultural nuances would of course impact the judgments that business people (in those industries or countries) would make when alcohol is served and it would be exciting to see if these initial studies have global applicability or not.
[*A team at the University of Pittsburgh recently conducted a study with 720 participants divided into small groups. Each participant received three drinks (either alcoholic, non-alcoholic or a placebo) over a 36-minute period. The subjects were videotaped by a hidden camera as they consumed their beverages and conversed. Then, experts in facial expressions and speech patterns evaluated their interactions with each other and found that moderate amounts of alcohol:
• Increased the frequency of “true smiles” and reciprocity of smiling;
• Increased social bonding;
• Kept all parties engaged in the discussion longer; and
• Enhanced positive emotions while decreasing negative emotions.]
**This blog is an excerpt taken from a series of posts and press releases on this subject by Rhondalynn Korolak. She is the best-selling author of 3 books, the most recent of which – Sales Seduction – is in the Top 20 Sales and Marketing Books on Amazon.com,
11 Feb 2015
If you’ve ever watched reality TV (and don’t say you haven’t because we all know it’s too easy to get sucked in by the drama and controversy), you may have noticed a specific formula…
First you find a cause – dating, small business, cooking or home improvement. Next, you add a few unassuming characters – some very relatable but also few who are downright crazy, nasty or delusional. And last but not least, you add just enough controversy, intrigue, shock and cutting remarks to keep the masses coming back for more each night.
In the end, are any of these contestants (or their small businesses in the case of Shark Tank) really any better off? Probably not, but what you have done is create some compelling TV and sold a bucket load of ads to big brands like iSelect, Swisee, Safeway, NAB and Mitre 10.
The other night, I watched Channel Ten’s latest reality TV import, Shark Tank. The premise is pretty straightforward.
A few naive and nervous and numerically challenged small business owners lined up to pitch to a panel of cool, critical and cashed-up potential investors.
Some ideas got funded for relatively small amounts. Most ideas (and their creators) got ripped to shreds by the panel.
So, the show is essentially Survivor, The Apprentice and The Bachelor all rolled into one with Australian small business contestants, and a catchy brand that has the ominous word “shark” in it.
How could that possibly fail?
As I watched, I wondered, ‘Are any of these small businesses likely to breakeven or become profitable and cash flow positive?’
And, perhaps not suprisingly, the answer is “not likely”.
Why is that? Because some of the ideas were pretty interesting. The cricket cooler, the motorized skate board and the hamdog may actually have global potential, but to be viable in the long term, the owners really need to do their homework first and know their numbers.
Case in point – not one of the small business owners who pitched had done market research with their product (or prototype) and could quantify the size of their market. Without that vital information, how can they possibly estimate topline revenue, market penetration or the value of their business with any precision or clarity?
And without those last three things, it’s impossible to give a meaningful pitch or ask for the “right amount” of capital. I’m sure you will agree, other than the guy who thought his hairbrained rental resume idea was worth $2.5million, most of the entrepreneurs vastly underestimated the amount of working capital that they needed.
Several contestants floundered when they got asked the big questions about breakeven, margins and cash flow. Yes, the dreaded cash flow question pretty much stumped everyone.
Most were asking for arbitrary sums of money to commercialise their inventions without regard for how much it might really take to get their brand out there and win their first major customers. One pair even thought it was clever to ask the investors to chip in $150,000 so they [the founders] could leave their secure day jobs and start working in the business full time. Crazy right? If you the owner don’t have skin in the game or work in the business full time, chances are you should still be writing your business plan, not pitching it on national TV in front of 5 sharks and a million viewers.
The cricket cooler duo were the most polished in terms of delivery and presentation. They recognized that patents and intellectual property were vital to their valuation and attractiveness to the sharks, but drastically underestimated the value of locking things down in India – the number one cricket market in the world. And the sophisticated sharks knew that Australia is just a mere drop in the bucket, compared to the potential in a market like India.
Unlike the really trashy stuff – Bachelor, Idol, or Real Housewives of Melbourne – the show didn’t make me feel icky or shocked while watching the sharks tear the flesh off the bones and gnaw away at the contestant’s dreams. I sort of expected that would be the main draw card and the whole premise of the show. Why call the show shark tank if you don’t intend to set up a blood bath and feeding frenzy?
But as an entrepreneur, I did feel genuinely remorseful for each of the contestants. The small businesses who got funded gave up decent chunks of equity for relatively small injections of capital – which may or may not be enough to get them to market and earn their first customers. And the ones who didn’t walked away without any constructive advice or tangible instructions on how to go away and get their idea investor-ready.
Although you may like to think you are creatively captivating your consumer with your communications, allow me to drop a mind-blowing bomb… Did you know that your current marketing messages are falling on the deaf ears of approximately 98% of your prospects?
12 Sep 2012
While only 2 pages in length, the executive summary is by far the most important component of your business plan or proposal. It is designed to summarize the key elements, capture attention and most importantly, showcase the financial highlights.
So, if you only have 2 pages to convey a significant amount of information and summarize the financial upside, how do you decide what to put in and what to leave out? Which financial features are critical to emphasize?
Depending on the purpose of your document and the intended audience (investment, sale, partnership, strategic alliance, joint venture etc.), you will want to tailor your financial disclosure to suit their needs and expectations. What would they want/need to see in order to make an informed decision?
At a minimum, you need to clearly state what financial input is required from them and what they will get in return – i.e. a share, debt instrument, license, exclusive right etc. Next, highlight the expected net profit and cash flow over 2-3 years. Also, give a clear indication of return on investment (ROI) AND a realistic, well defined exit strategy.
In an executive summary, it is important to be succinct and focused. It is not the time to tell your life story, overpromise with unrealistic projections or overwhelm with too much detail. You will only get one chance to make a good first impression and capture the attention of the reader. In fact, many sophisticated investors have told me they rarely read a business plan or proposal in its entirety. They make their decision on the strength of the executive summary and their assessment of the owner/manager (in terms of character, knowledge, skills and tenacity).
Focus on “what’s in it for them”. Show them clearly how they can benefit and when the result will be crystallized. Give them enough detail to understand the industry, opportunity and unique solution you provide. And most importantly, clearly summarize the key financial metrics of profitability, cash flow and ROI.
In short, make it EASY for them to invest in YOU.
Article Source: http://EzineArticles.com/6107414
It’s an unlikely source for great business advice for entrepreneurs. A story about Billy Beane, the general manager of a major league baseball team at the bottom of the ladder – the Oakland A’s. Crushed by the big budgets and big name players of teams like the New York Yankees and the Cleveland Indians, Beane is forced to take a risk and do something no team has done before – abandon traditional recruiting methods and employ computer-generated analysis to acquire and trade players. And in doing so, he changed the face and landscape of the game forever.
The following quotes from the movie were never really meant for you and your business and yet, they reveal some fantastic truths about life and success that will make you a better owner and leader.
1. You’re not solving the problem. You’re not even looking at the problem.
It is very easy for you to be distracted by all the issues and rhetoric swirling around the actual problem. The more you (or others) have personally invested in the status quo, the more you will be prevented from seeing the real problem for what it is. Seek advice and perspective from people outside your industry — those inside will be emotionally attached to the way things have always been done and thus, they have become part of the problem.
Your number one objective is to determine what the actual issue is, and solve it. You don’t have time to get caught up in meetings talking about why it is a problem or re-engineering band-aid fixes that have not cured it in the past.
2. We’ve got to think differently.
Your business really isn’t that different from the Oakland A’s baseball team. If you’re a start up or a small-mid size business, you’re likely working under some tight (and possibly unfair) resource constraints. If you want to grow and to challenge competitors that have much deeper pockets, you need to level the playing field or you need to change it completely. It is impossible to beat anyone if you insist on letting others dictate the terms. You must start by thinking differently. What would need to change in order for you to have the advantage? What can you do differently right now to achieve your objective? How can you adapt or modify your approach to get what you want?
Playing the game on your competitor’s terms is no longer a viable option. It can only lead to frustration and failure.
3. He passes the eye candy test. He’s got the looks – he’s great at playing the part.
Success often depends on good scouting and recruiting. A common mistake that most of you will make is to recruit team members that you like (and have something in common with during the interview) or who look the part. In order to ensure the survival of your business, need team members that can actually do the job that you need them to do. It doesn’t matter whether the candidate has 15 years of experience at a multi-national or comes highly recommended from so-and-so. None of that amounts to a hill of beans if they cannot do the job. If you want to boost your success this year, get the right people on your bus. If you need a good hitter (someone who can close business) don’t hire a semi-retired catcher who is charming in the interview.
4. Your goal shouldn’t be to buy players, your goal should be to buy wins.
It is important to get the right people on your bus. However, in order to do that, you need to figure out exactly what needs to get done and hire people who can do it. Don’t get caught up in fancy titles, big salaries, stock options and what looks good to the outside world. If you want to be successful you must be in the business of plugging gaping holes and buying outcomes.
If you need more customers and sales, hire someone that you know can and is incentivized to close business. It doesn’t matter what you call him, what matters is that he can produce the result that you need to survive and thrive in your business.
5. Why do you like him? Because he gets on base.
Step 1 – figure out what success looks like for the role you need to fill. Step 2 – don’t hire anyone without a proven track record of achieving that outcome. Step 3 – Get rid of (or trade) anyone who can’t fulfil their role or who is polluting the office environment.
6. Where on the field is the dollar I’m paying for soda?
It is good to be frugal and smart with your money but it never pays to be penny wise and a pound foolish. If you want to grow your business profitably, focus on the items that will have the biggest impact on your bottom line and cash flow first. There’s no point focusing on shaving one or two thousand dollars off your fixed expenses if you’ve got $25,000 tied up in dead or slow moving inventory. To make good decisions and take action that boosts your bottom line, you need to measure and track your financial KPIs regularly.
7. I’m not paying you for the player you used to be, I’m paying you for the player you are right now.
While you might get away with recruiting based on potential, in the end, you can only reward based on results. Time and time again I have seen business owners struggle with the decision to let salespeople, who are not meeting their targets, go. The decision is really a very easy one. Someone has to go. It’s either them or you. You can’t win a baseball game without putting runs on the board and you can’t build a successful enterprise without hitting sales targets consistently.
8. It’s day one of the first week. You can’t judge just yet.
Patience is a virtue. Don’t pass judgment judge too soon. If someone’s not performing or the team is not quite gelling, take some time to investigate, ask questions and make adjustments. All changes to the team will have a natural breaking-in period.
Too much tolerance can become a vice. Good performers tend to contribute value very quickly – both in terms of their attitude and work ethic. The typical 3 month probation period is more than enough time to make a fair evaluation. When the writing is on the wall, have the confidence to cut your losses and move on.
Despite the Oakland A’s disadvantaged revenue situation, Billy Beane took his team from bottom of the ladder to World Series contender in just a few months. By re-evaluating the strategies that produced wins on the field, they built a winning team with only one-third of the salary budget of the New York Yankees. To do this, they had to do more than just play better a better game of ball. They had to transform the playing field completely.