It is usually unseen and unspoken, but can influence greatly the decisions made. Psychologist Mbutu Kariuki breaks it down, and tells us how you can use psychology to your advantage.
How should one prepare psychologically for a big event, like pitching business to potential investors? Athletes warm up before going into a race, what are the psychological warm-ups that would be helpful?
Appearing before a group of investors can be intimidating. However, you can lessen the anxiety in a number of ways.
One, watch videos of people handling similar situations. Two, do a timed presentation of your idea to colleagues, family, friends or mentors and incorporate their feedback. This is a good way to rehearse presenting short and precise answers. It also helps build confidence and clarity of ideas. Have your figures and projections at your fingertips.
Three, work on your emotions. Learn to take feedback (questions or criticism) seriously and positively. For example, if you find yourself shouting at someone, getting irritated or getting emotional, it could be an unconscious cover-up for weak ideas. Ask for help.
Four, practice doing presentations when alone. Is the business idea sensible to you? Do you have difficulties answering your own questions? Speak to an imaginary crowd when alone at home or in the office (believe me, this is not a sign of a splitting mind!).
Five, remain positive and optimistic. Appreciate the opportunity – being selected to make a pitch is already a success.
Finally, get enough rest and sleep, especially the night before the presentation. Waking up tired may only worsen matters and make you more irritable.
How does the psychology of first impressions come into play?
Your first encounter with investors will definitely contribute to the impression they form about you. Normally, the first impression is the lasting impression, and subsequent attempts to change this may not amount to much. This is referred to as the primacy effect – the enduring quality of initial impressions.
The big question is: should you try to act natural and be yourself, or should you deliberately change your behaviour to get investors to have a more favourable impression? My take is that being at our best should not come at the risk of sounding exaggerated and insincere.
Some crucial tips to help in impression management include using the right non-verbal cues – smile often, maintain an open posture, lean forward if sitting, maintain a high degree of eye contact, and frequently nod your head in agreement with what the interviewer is saying (but don’t overdo this as it will look insincere). If these cues are not natural to you, try to consciously apply them. For example, if you are shy and not comfortable maintaining eye contact, look slightly above the investors’ heads – not at the ceiling.
Second, conform to situational norms. For example, dress like your investors would. The idea is to not appear significantly different from them, unless you are selling the outfit itself. Avoid jargon, heavy vocabulary (this is not a grammar class) and cursing. Observe good manners, and always keep in mind that you’re asking people to invest in you.
Third, appreciate others. Acknowledge the input of your team. “I did” or “I shall” will only present you as selfish. Even if you’re alone, create the impression that you have been a beneficiary of help at some point (which is often the case) and would do better with more help. This is why you’re pitching after all.
The word ‘influencer’ gets thrown around a lot in business, but how does the power of persuasion really work?
It is important to remember that investors are people with beliefs, intentions, motivations and attitudes. Hence, attempts to influence them could actually be an uphill task.
There are many factors involved in persuasion (and attitude change), but I propose the following:
1. Endeavour to look attractive, likeable and trustworthy; 2. Think about the message. The conundrum here is whether to employ a rational or emotional strategy. That is, should you use basic motivators, like love, sex and fear, or use fact or logic to persuade? We know that emotional appeals are very powerful, but how applicable would they be in this setting?; 3. How is the message conveyed? Unlike in an ad on TV or in newspapers, this is a face-to-face encounter; 4) Who receives the message? For instance, it may be easier to influence younger people than older ones.
When researching potential investors before making a pitch, what should you be on the lookout for?
Everything – including core business interests, figures, possible areas of conflict with your idea, areas of unfair competition with you (be wise, you may be giving away the goose that will lay you the golden egg) and, above all, possible areas of co-operation.
How does one deal with an unsuccessful pitch?
An “I’m out” verdict is definitely heart breaking. But if you attribute the failure to something inside yourself, you will only be courting more pain, guilt, stress and perhaps depression. The “I’m out” verdict is not a judgement on your character, personality, intelligence or state of mind. It is about the best way to run a profitable business – which is a skill. And skills can be acquired.
Think about the pitch as a unique opportunity to test your idea. This way, even if you’re unsuccessful, you’ll be more likely to try again and succeed. It is important to be realistic about the only two possible outcomes.
Resilience is the hallmark of all successful entrepreneurs. It’s the ability to bounce back. Instead of engaging in blame games, think about the questions that were asked, criticisms raised and disapprovals, and use them to get a better understanding of your business idea.
