If I could teach only one skill
to entrepreneurs, it would be Jujitsu. This
naturally enough brings to mind the thought of thousands of well coached entrepreneurs
felling petulant potential investors with a single chop. That’s not quite what
I am getting at….. Jujitsu is a martial
art that turns the energy of an attack against the attacker. If you try to
punch someone and you are suddenly on your back looking up at your adversary’s
smiling face while your wrist is pinned against his left leg – that’s Jujitsu. The energy of your attack becomes the energy
he uses for the defense – basically you are fighting yourself.
In the context of entrepreneurship,
Jujitsu means something else – it’s taking the unspoken negatives that someone
brings into a relationship with the entrepreneur and turning them into an
advantage. How to do this, and when to
do this, is the most important thing any entrepreneur can do to improve his
prospects of success.
As I have mentioned in prior
blogs, I often think of an emerging business as a series of “sales”
transactions. Broadly speaking, each
time an entrepreneur needs to influence another, whether it’s obtaining investment,
finding an advisor, hiring the first employee, getting the first customer and
so on, the entrepreneur has to influence the other person in the
transaction. I describe that as a “sale”
transaction, since ultimately the skills of sales – getting someone to see the
value in what you are offering and agreeing to consume it – really describes
just about anything an entrepreneur has to do to grow his business.
In any sale transaction, the
target of the entrepreneur approaches the interaction with the entrepreneur
with many unspoken “nos”, reasons why going into the interaction with the
entrepreneur the target is not disposed to bending to the entrepreneur’s will. All entrepreneurs, indeed, all people have
experienced situations where the people they are trying to influence seem less receptive,
or suspicious; or, situations where a discussion is “going well” and then
suddenly changes in tenor “for no reason.”
These are situations where the unspoken “nos” have come into play.
When people go into an
interaction with pre disposed reasons for why something doesn’t make sense for
them (the unspoken “nos”), there are often unwilling to share these
preconceptions, or are uncomfortable about sharing them. There are a number of
reasons for this. Sometimes, they are
embarrassed to share – it might not be politically correct to express them, or
they are based on some prior experience that is uncomfortable to share. Other times, they are withheld to keep the
other party off balance – knowledge is power in a negotiation – keeping one’s
true feelings obscured is a proven negotiation technique.
Sometimes people expect others to
“know the score” and address the unspoken nos as a matter of course – in other
words they use the unspoken nos as a way to see if the other party is
sophisticated or has done similar transactions. Venture investors, for example,
are very good at using how entrepreneurs respond to unspoken nos in a venture
transaction as a filter to see whether the entrepreneur understands the dynamic
of a venture transaction.
Whatever the reasons for the
unspoken nos, there are two common elements: first, the person holding them is
usually not willing to overtly share them and (ii) the entrepreneur who
addresses the unspoken nos is much more likely to complete the sale. The other thing that is interesting about this
dynamic is that one often gets a “bonus” for answering unspoken nos.
It’s a funny thing about people, when you
provide them with information that they value without them “having to ask”, or
if you turn their prejudices around, they will respect you more, not less. You rise in their estimation and they are
much more likely to be “sold.” This is
the art of entrepreneurial jujitsu – taking the unspoken no and turning it into
an unspoken, or a spoken yes that is more powerful. The art of answering the unanswered question,
without making the asker uncomfortable is the jujitsu of entrepreneurship.
There are so many unspoken nos in
every transaction, that a good entrepreneur will put himself into the place of
his potential target and first ask this question: “why would my target not want
to do business with me?” An honest
assessment of this is the first place to go for the unspoken no. The next question would be “is they anything
about my background that would make the target uncomfortable?” As you can see, this process might not be
comfortable, but it’s not supposed to be, it’s designed to help you address
these issues in your presentation or sales call.
The last point to make on
unspoken nos is that I am not suggesting that you bluntly say “I know you don’t
like lawyers,” “or, if I were you I wouldn’t want to deal with a start up
either.” People rarely like to have you
call out their unspoken nos; it is uncomfortable. So, the trick is to answer their questions as
a natural part of your presentation without actually calling out the question. Here are a few practical examples of how you
would apply entrepreneurial jujitsu:
|
Unspoken No
|
Potential Response
|
|
I want to work with someone who’s “done this before”
|
Provide examples of current
referencable customers; show prior meaningful work experience.
|
|
I want to work with someone who looks/acts like me
|
Highlight members of the team
with similar life or cultural experience; discuss the importance in business
of having a broad perspective on working with broad teams – show examples of
successfully working with people that look/act like them.
|
|
I have start ups – they are so fragile
|
Show through partnerships and
investors that the business is well capitalized and has been in business for
a while.
|
|
I don’t want to be embarrassed by selecting this company rather than
the industry incumbent
|
Provide examples of customers
who have selected you over the incumbent; discuss positive differentiation
against industry incumbent.
|
|
How will I know you will be there when I call?
|
Demonstrate business commitment
by referencing other happy customers; show how technology is used by your
business to provide 24/7 service.
|
|
How will working with you help my career?
|
Discuss the growth prospects of
the company and demonstrate the prior participation of recognizable stake
holders; identify referencable individuals who are having great current professional
experiences, or solid prior relationships.
|
|
This is too expensive
|
Discuss the customer’s true
cost of not utilizing your solution; what are other customers realizing in
savings/benefits from utilizing your product.
|
|
I’m too busy for a long meeting
|
Ask immediately “how long do
you have” and make the meeting not more than 75% of the stated time.
|
|
How Do I know you are not lying
|
Present examples of where the
business has previously delivered promised results: discuss aspects of your
prior work experience that show you are an honest person that delivers
results.
|
Clearly the list above is not
exhaustive, but is illustrative of the wide range of unspoken nos that an
entrepreneur addresses on a daily basis. The secret is for the entrepreneur to be
reflective and honest with herself as to how the listener is really going to
receive their sales pitch and to disable the unspoken nos. The entrepreneur that learns how to do this
effectively will find it much easier to grow his business.