NZ Entrepreneur - Issue 34

NEW ZEALAND’S E-MAG FOR ENTREPRENEURS AND BUSINESS OWNERS

September 2015

10

QUESTIONS withSteve O’Connor

Founder of Flick Electric Co. Finalist of NZ Innovator Awards

What Entrepreneurs Need to Prove to Investors Dealing with difficult people? How to get better outcomes Kiwi Entrepreneurs Doing Amazing Things www.nzentrepreneur.co.nz

ABOUT / Short and sharp, New Zealand Entrepreneur is a free e-magazine delivering thought

CONTENTS

provoking and enlightening articles, industry news and information to forward-thinking entrepreneurs.

EDITOR / Jennifer Liew ART DIRECTOR / Jodi Olsson GROUP EDITOR / Colin Kennedy

4

From the Editor

6

As an Entrepreneur Avoiding Rejection isn’t an Option

12 10 Questions with Steve O’Connor 20

It’s not your spelling your customers value, It’s what you’re selling and how you’re doing it

22

Festival for the Future 2015

28

Negotiating With Difficult People

CHIEF FINANCIAL OFFICER / Alastair Noble CONTENT ENQUIRIES / Phone Jennifer on 0274 398 100 or email jennifer@nzentrepreneur.co.nz ADVERTISING ENQUIRIES / Phone Jennifer on 0274 398 100 or email jenniferl@espiremedia.com WEBSITE / nzentrepreneur.co.nz

34 Entrepreneurial Intelligence 36

The Most Important Thing for Entrepreneurs to Prove to Potential Investors

40

NZ’s BE Intent Takes Out Best Digital Business (SME) Category at Talent Unleashed Awards

2 • www.nzentrepreneur.co.nz

ISSN 2253-5683 NZ Entrepreneur is a GREEN MAG created and distributed without the use of paper so it’s environmentally friendly.

Please think before you print. Thank you!

Introducing Alex or as we like to call her

Australia’s next top

‘Frock-Star’

Before discovering the entourage Alex had tried and failed for over 3 years to get her online dress rental business off the ground. Since discovering our community Alex has frocked her way to becoming the go-to-gal for the style needs of everyday divas, fashionistas, and TV stars alike.

With the help of our world class advisors and the support of our community to spur her on, Alex has gone from spruiking her own edgy threads to working with some of Australia’s leading labels including Josh Goot, White Suede & Nicola Finetti. Her growing Instagram following @herwardrobeaus is just the start of where this fast moving fashion sensation will go.

“I had all the right ingredients to LAUNCH

my business – a good education, experience & UNWAVERING PASSION, but it

wasn’t enough.”

The Entourage is changing the world through a new kind of business education.

THE-ENTOURAGE.COM.AU/NZENTREPRENEUR

Call 1300 755 855 or visit our website to find out how the entourage can help you create the life and business of your dreams. @theentourageoz

EDITORIAL

UNFORTUNATELY, ALL TOO often when we think of ‘sales’ we conjure up images of the dodgy ole’ car sales rep or worse (no offense to car sales reps).

But sales (basically sharing our creations and vision with the world) is something that is absolutely necessary to entrepreneurial success.

A fear of sales and rejection is much more common for entrepreneurs than you may think.

4 • www.nzentrepreneur.co.nz

So; if that is a fear we have as an entrepreneur, how do we get over it?

Check out our main article from Sandy Geyer on why avoiding rejection isn’t an option and why getting our heads in the game of being a salesperson is critical to our success as an entrepreneur.

Jennifer Liew

✉

Dan Alpe, Chief Operations Officer of JUCY

Bold business with global goals meets its perfect match.

JUCY is a tourism business with a difference. The New Zealand based company with big global aspirations stands out from the crowd by being funky, innovative and disruptive in a saturated market. The core of JUCY’s business is vehicle rentals, with a fleet of 3,000 and a staff of 300, but the company is focused on much more than creating products people can hire.

JUCY Chief Operating Officer Dan Alpe says the business is focused on brand; moreover, they’re focused on growth via offering unique products and services, they’re focused on expansion in Australia and the US, and they’re focused on developing a community.

“We live by our values and create a community of likeminded people, so our customers automatically become part of the JUCY community, and we see the same values in 2degrees.”

Like 2degrees, JUCY started small and has been taking on the ‘big boys’ in its industry, which was part of the attraction when JUCY signed up on a 2degrees Business Connect plan. But it’s the quality of service that JUCY receives, and their shared focus on technology and customer interaction, that makes the partnership strong.

“Joining 2degrees meant we could bring all our team on mobile and share our data; we get far better cost efficiency, which is a big factor for us, and everyone is contactable around the clock,” says Dan.

The JUCY team no longer has to think about data allowances – they have a big pool of data that rolls over each month if they don’t use it. Having unlimited calling throughout NZ and Australia has also made a big difference. Dan, who doesn’t have a desk phone, says he doesn’t think twice about ringing the guys in Brisbane now, which gets a far better response and takes half the time of email.

Chief Executive Officer Tim Alpe says, as a business that’s growing quickly, JUCY needed a telecommunications partner that could grow at the same speed and offer technology that would enable them to better communicate with their customers.

“Being connected is a huge part of the tourist journey.

Our customers are very tech-savvy so we’re working with 2degrees to offer services that appeal to them, such as offering branded SIM cards and tailored visitor prepay packs, allowing them to stay in touch as they travel the country. Needless to say then, nationwide coverage is essential for our customers and our team, and 2degrees delivers that.”

Dan says he’d absolutely recommend 2degrees: “If we ask questions they come back with answers, rather than having to go through miles of red tape. 2degrees is a lot more reactive and able to make decisions quickly – I’d say go for it!”

Join NZ’s smartest businesses switching to 2degrees Talk to a Business Specialist today on 0800 022 249 or visit your nearest 2degrees store.

2degreesmobile.co.nz/store-locator www.nzentrepreneur.co.nz • 5

ENTREPRENEURSHIP

As an Entrepreneur Avoiding Rejection isn’t an Option

If selling ourselves, our ideas, our mission and getting loads of ‘no’s’ is part of the entrepreneurial journey, our reason for doing so (our purpose) better be big enough. Check out part of Sandy’s journey in this article. Be sure to check out the link Sandy’s provided to the TED talk video of the author of Eat, Pray, Love and her take on overcoming rejection and gaining success.

BY Sandy Geyer

6 • www.nzentrepreneur.co.nz

“

“

SOMEWHERE AND SOMEHOW, in the annals of time gone by, when the notion of business building was in its design phase, a rule was decreed that for every ‘yes’ a business leader got in their quest to build their dream, they would be discouraged by an unequal and simply crushing number of ‘no’s’. And it was so that negativity became the foundation of this career path for all eternity, rendering the journey of the entrepreneur, fraught with the merciless onslaught of rejection and rebuff. Sound familiar?

The word ‘no’ is most likely the first word that we learn to recognise as small children

When I was building my educational publishing company, I found that getting past ‘no’ was counterintuitive, but stopping in my tracks just wasn’t an option in the pursuit of traction. With this almost desperate persistence, The word ‘no’ is most likely the first word that we learn to I learned quickly that ‘no’ very seldom meant just ‘no’. In recognise as small children most cases it actually meant; and whilst it is often said ‘just not now’, ‘its too early/ with the best of intentions late for our budget’, ‘we have by our caregivers as they been using the same book want us to survive past an for years and don’t see the early age, it results in early need to change’, ‘one of our programming that is largely teachers has written the book negative. Such negative programming, unfortunately, we use’, ‘you look too much like my husbands ex girlfriend’ teaches us very early in our or ‘I would really rather go and development to temper our actions to avoid the dreaded drink tea in the staff room than stand here and talk to you’. word ‘no’ at all costs.

www.nzentrepreneur.co.nz • 7

“

As we grew and my skills developed, I learned more quickly about how to avoid rejection right from the start as well as move on from it effortlessly and efficiently.

Once I became adept at refining and teaching this hard-won learning to my sales team, we grew steadily and exponentially. For a time, I almost forgot how big a deal rejection had once been to me.

8 • www.nzentrepreneur.co.nz

“

I found that if I could get to the bottom of what ‘no’ actually meant then I had an idea of what to do next and how to re-approach the prospect at the appropriate time, in the appropriate way. This process took a lot of patience, a very thick skin and willful insight.

We had to bear in mind that we started our company in turbulent political times in a country when most of our clients were overcome with a tidal wave of uncertainty and pending change.

The gatekeepers in the industry for professional development are ruthless and not afraid to offend.

They brutally question authenticity, relevance, gender and nationality to find the most formidable and soul crushing ‘no’ to come back from.

When I started EnQPractice rejection became an enormous part of my professional life again. The personal nature of rejection was also far worse as the concept of Entrepreneurial Intelligence is my creation, and not a product that someone else has written or developed. The gatekeepers in the industry for professional development are ruthless and not afraid to offend. They brutally question authenticity, relevance, gender and nationality to find the most formidable and soul crushing ‘no’ to come back from. And rejection, unlike objection, is not a show of interest.

It is a short and often vicious, punch to the guts of what you are offering, simply to make you go away and lessen the load on the desk of the gatekeeper. Do I blame them?

In most cases, no. With the sheer numbers of people in my industry knocking on their doors that are relevant, they are completely overwhelmed.

Never mind the gazillion others who are not relevant or simply bombarding them with spam email and cold calls in a vague hope that one hits home. But I keep going because I believe in the value of the offering.

My long-winded point is that to grow a business or practice of any kind we have to make peace with the passenger ‘rejection’, who is going to take their seat in our vehicle of business growth, alongside tenacity, vision and commitment, invited or not and tolerated or not.

Here are five ways I have managed to keep ‘rejection’ firmly buckled into their seat in my vehicles, out of my focus and far enough away from the handbrake to not be able to reach for it, just as I am gathering speed:

Understand that rejection is a necessary part of success.

Avoiding the chances of rejection only limits our chances of success. Focus on getting better at filtering which rejections to ignore (the issue is them) and which to accept, further explore and utilise to polish our act (the issue is ours).

Get really good at communicating what it is that you can do for your potential clients. Having it right in our heads isn’t good enough, even if we are comfortable in sales situations.

We have to craft and rehearse our message to make sure that we hit the mark if the mark is indeed, ours to hit.

Learn the art of effective communication. For a small investment of time and dollars, we can learn how to communicate effectively to the 75% of our clients who are not like us and need us to communicate our message in a different way.

www.nzentrepreneur.co.nz • 9

Putting our heads down and just getting on with it, without expecting a fast result or an easy short cut, counts for a lot.

We are in service to our clients, and we shouldn’t look to them to encourage us in any other way than by obviously benefiting from our services. Minimising

“

“

It all comes down to numbers, and we just have to get past a certain number of no’s to get to the number of yes’s we need.

Managing rejection and success is a big part of the entrepreneurial journey.

Managing rejection and success is a big part of the entrepreneurial journey.

Although more related to creativity, one of the best rejection is a responsibility presentations I have seen that we need to take by being on managing the concept professional and authentic in of rejection and success, all ways even if we can’t avoid in context, is by the author it completely. of Eat Pray Love, Elizabeth Gilbert (here).

If we stay close to our purpose, surround ourselves I would like to share this with the right people and golden snippet with you and find ways to measure and my very best wishes for a monitor visible progress wonderful September. For we will sustain enough many of us spring naturally encouragement to endure lifts our spirits and our through the building process. activity levels. ■ Sandy Geyer is an entrepreneur and mentor and teaches the principles of entrepreneurial intelligence (EnQ), to entrepreneurs in New Zealand, Australia and South Africa. You can visit Sandy’s website at www.enqpractice.com

10 • www.nzentrepreneur.co.nz

Payroll made easy.

BNZ EdgePayroll is a simple and easy-to-use payroll solution that takes care of direct crediting wages, PAYE filing, IRD payments and KiwiSaver contributions.

Simple and easy to use Flat-fee from $25 per month1 - if you don’t use it, you don’t pay Secure, cloud-based system We’ve partnered with Datacom2, a PAYE intermediary, which means you’ll never miss a payment to the IRD Full support available from a New Zealand-based help desk

Click here to find out more.

5030

BNZ business transaction account required. 1. $25 per month fee is GST exclusive and covers payroll services for one to five employees. Other one-off set up fees will apply. 2. EdgePayroll is provided by Datacom Employer Services Limited (Datacom) for BNZ customers. BNZ will receive a commission from Datacom for referring you.

www.nzentrepreneur.co.nz • 11

INTERVIEW

10

QUESTIONS with Steve O’Connor

12 • www.nzentrepreneur.co.nz

Steve O’Connor has a diverse blend of experience from innovative start-ups to running strategy for multinationals, and getting to know New Zealand’s electricity industry from the inside, which led him to gather a team to start work on a disruptive electricity retail model in early 2013. Entrepreneurism runs in Steve’s veins. As well as overseeing some of Wellington’s most recent start-up successes as Chief Executive of Creative HQ, Steve also co-founded market intelligence company Marketview, and was a shareholder in and Managing Director of Datamine. Steve shares snippets of his own story as well as plenty of wise advise for fellow entrepreneurs.

Tell us about Flick and how you’re disrupting the electricity market as we know it today.

Flick Electric Co. is the only power company that gives New Zealanders access to the wholesale price of electricity direct from the spot market.

For the very first time, we are giving customers a price signal that empowers them to choose the price they want to pay, for the things they want to do.

In fact, we pass on all of the costs of getting power to your place, without any markup – that’s generation, distribution, transmission and metering – and then charge a separate fee to service you as your retailer. This means you always pay the true cost of power and get complete transparency about who you are paying, for what.

www.nzentrepreneur.co.nz • 13

Was gaining seed capital necessary to launching Flick in the beginning? If so, can you provide a few top tips for other entrepreneurs seeking capital?

Tackling the status quo in an industry like ‘electricity’ can’t be an easy task, what’s the story behind Flick and how did you get it off the ground?

In early 2013, I talked though my ideas with some exindustry colleagues who were also in a position to look at something new. The two people in the team that had the most electricity retail experience initially said no way! Historically, it’s been a graveyard for new retailers.

We decided to give ourselves a three-month window to validate the idea before making the big decision to invest our money and time. A thousand Post-It notes later, we decided we were onto something.

From there it took us a full 12 months to build our initial systems and processes and pilot them. It felt like an eternity to us, but it was in fact incredibly fast for what we did.

14 • www.nzentrepreneur.co.nz

Gaining seed capital was imperative to getting Flick off the ground. In the first year, we pretty much funded the journey ourselves, but then needed to reach out externally to fill the tank so we could continue to move with speed.

Getting seed capital is an art and a science. You have to make sure you’ve got an investible offer. That means having a clear value proposition for the customer, and a market large enough to turn that into a valuable business. You need to have nailed the other ingredients, alongside capital, that will give the investor confidence that you can realise your value proposition, like an amazing team for example. Be clear on the capital you need, and what it’s for, that will ensure you realise the market opportunity you have identified. And finally, be prepared to give up some of the business to investors so you can realise its true potential.

What separates successful entrepreneurs from unsuccessful entrepreneurs?

As an advisor, mentor and investor in NZ growth companies yourself, what are the key attributes you look for in entrepreneurs who introduce their ideas to you?

I think it’s important entrepreneurs know the industry they’re going into.

Otherwise, it will likely trip them up no matter how good their idea is. Success is really about hard work. Good ideas are a dime a dozen, but it’s the right team and a massive amount of hard work, put to the right things, that gives your business the best chance to do really well.

Successful entrepreneurs are determined, to the point of belligerence! They’re people with a nose for an opportunity – that can identify customer problems and envision solutions to them. And they can draw talent and team to the opportunity. To be successful in this game, you also have to be massively adaptable.

Everything Is uncertain, so you have to have the strength to hold to a vision, but ultimate adaptability on how to get there. Don’t hold on to the solution. Hold on to the problem.

www.nzentrepreneur.co.nz • 15

“You must set the positive spirit, make the goals clear, show how the job is feasible and possible, but also push people to be their very best selves.”

As founder of Lightning Lab and your 5 year tenure as CEO of Creative HQ in the past, you’ve helped a wide range of businesses succeed over the years – how do you know when you’re on to a good idea?

Customer validation. It’s the ultimate currency. Until you have customers responding to your offer, then you don’t actually know if you’ve nailed it. Success comes down to solving a real problem, not an imagined one.

A true pain point.

You also have to have a differentiation that you can hold on to. There will be fast followers, but a successful business will keep evolving its points of differentiation to stay ahead of the pack.

16 • www.nzentrepreneur.co.nz

With all your experience in leadership over the years, could you please share with us a few tips on how to lead a team successfully?

We’ve had an amazing team at Flick from day one. It’s so much easier to lead a team of people that are committed and into it up front!

From a leadership perspective, it’s important to pay attention to morale – a demoralised team won’t function. You must set the positive spirit, make the goals clear, show how the job is feasible and possible, but also push people to be their very best selves. No one will work for an impossible goal, or strive when they don’t feel valued. Find a meaningful task for everyone no matter what their skill or level.

Finally, know what you are talking about, despite the inherent uncertainty of a growth company. If your team sense you are lost, that breeds paralysis – the first thing that will kill a young company. As the leader, you must do the research first, or have the most information, and make sure everyone’s clear where you’re going.

As a business builder, were there any times where you ever felt like giving up on a business or project and if so, how did you keep yourself going through those times?

There have been many many times! But you just have to be able to pick yourself up, dust yourself off and go again. It goes back to that inherent entrepreneurial determination and knowing that if you don’t do it, someone else probably will.

That said you have to keep testing yourself. Is this too much for me, or too much for the business? There is a big difference between seeing things for what they are and

calling it. There is a ‘right time’ to give up on an idea and being able to bust through the challenges that are inherent in any business.

What or who is your greatest inspiration?

The people that I work with, and what we’re doing, every day. It’s really amazing, and energising to see the team we’ve grown giving Flick their all. People doing clever things. People seriously committing to the business and themselves. People who are passionate about growing, and who want to make their work something they love.

www.nzentrepreneur.co.nz • 17

18 • www.nzentrepreneur.co.nz

What’s on the horizon for you, what is your ultimate goal for Flick?

successful there too.

I’d like to think the future will see the emergence of a number We aim for our approach and products to become genuinely of innovative and independent retailers like Flick delivering mainstream in New Zealand. a mix of differentiated offers Our aim is for Flick’s brand to and services and competing be loved by many thousands across many facets for of Kiwi homes and business. the customers’ business.

We also want to continue Competition drives innovation! to innovate and deliver new experiences and significantly And I’d love for electricity more value to our customers. consumers to engage with the Finally, what we’re doing is industry again - that they can also unique globally so we’d come to value electricity as a like to see Flick’s platform and product, and love the retailers that deliver it. ■ model go offshore and be Steven O’Connor is a Wellington based entrepreneur, investor and mentor. His most current venture is Flick Electric Co., he’s the Founder/CEO. Find out more here.

www.nzentrepreneur.co.nz • 19

MARKETING

IT’S NOT YOUR SPELLING YOUR CUSTOMERS VALUE,

It’s What You’re Selling and How You’re Doing It Whether you act as the copywriter for the marketing efforts of your business or you’re hiring one, be sure the number one focus is how you sell, not how you spell. That’s Colin’s advice to entrepreneurs.

Your clients and potential clients are interested in a great story and what’s relevant to them not how great your grammar and spelling is.

BY COLIN KENNEDY

IF YOU WANT A copywriter because you don’t have the time to do the copy yourself or spell terribly or have a limited vocabulary why not get an English teacher, they will probably cost less.

but if you don’t want to find your audience asleep by the end of the first paragraph, it might pay to give a 10-yearold Spelling Bee contestant a go. Kids can be creative, so you never know!

Heck, some kids who do Spelling Bees have better vocabularies than most copywriters, and they’re bound to be considerably cheaper too.

But if you want somebody to sell your product, somebody who can persuade and tell compelling stories that will have your potential customers and clients reaching for the phone, or for their credit cards; then you want a copywriter. In the immortal words of John E Kennedy (no

Teachers (in my limited experience) will get the grammar and spelling perfect

20 • www.nzentrepreneur.co.nz

relative) penned in 1905 - it’s salesmanship in print.

A copywriter works with the psychology of the hook. He or she researches and then creates a concept that goes to the heart of the prospects needs and desires. Then they work with that empathy and understanding to convince the prospect that their lives will be vastly improved by doing business with you.

Do not reduce a copywriter to the lowest common denominator. That is true of spelling and grammar, or somebody you need to pick up the slack because you can’t do it yourself. Most people can sing, that does not mean they can do it well enough to be paid like Susan Boyle.

Most people can write too, but, well… you get the point.

Of course you don’t want a dog’s breakfast, and any copywriter should have a better than average grasp of spelling, grammar and syntax.

But it’s better that they get the sales part right – that’s the real gold.

Even your spellcheck can check the spelling and grammar. You don’t need a copywriter for that.

Consider that journalists research, interview and then tell a story once they have conceived the angle, the worthiness of the content and have made it as engaging as they can. Then it goes to the news editor, copy taster, subeditor, night editors. Writers conceive; others proofread, double-check the facts and add the finishing touches.

But the creator in the beginning is the writer, and he or she is not perfect, they make mistakes. For mistake free, you need an English teacher and even they will be hard pressed to be perfect.

Teachers understand the rules.

Masters create the craft.

Grammar and spelling has purpose when it not only makes sense but is also riveting, persuasive, absorbing.

Nobody reads anything for the spelling or grammar – they read it for the story. ■

Colin Kennedy, Head of Content from Espire Media is a thought leader in content marketing strategy and communications in New Zealand. www.espiremedia.com

www.nzentrepreneur.co.nz • 21

Tomorrow’s Entrepreneurs

*

Festival for the Future 2015

The youth of today, completely self absorbed and just constantly plugged into their smartphones or perhaps the most enlightened generation yet, more interested in doing good and ethics-driven business than any generation before them? Charlotte Graham of Inspiring Stories explains more and shares highlights from Festival for the Future 2015.

22 • www.nzentrepreneur.co.nz

US Ambassador to New Zealand, Mark Gilbert introduces speaker Sasha Fisher of Spark Microgrants in Africa

MILLENNIALS ARE OFTEN a confounding demographic for market researchers and some quarters of business. Are they the ‘me’ generation, constantly on their smartphones and only interested in themselves?

Or is the other story true - the one that says they’re more interested than any generation before them in jobs and purchases that do ‘good’. And not just lip service to good, but tangibly ethics-driven business?

In June this year, we put out

a call for 400 young New Zealanders who wanted to be a part of creating a better world, to spend a weekend at AUT Business School in September for the fifth annual Festival for the Future. While the event has grown every year since 2011, interest in it is a good yardstick for what our young people care about.

What happened this year was astonishing: all 400 tickets were sold out in late July, five weeks before the event. We made capacity for more seats through a simulcast theatre at

www.nzentrepreneur.co.nz • 23

the venue - and that sold out too. More than 500 people, mostly aged 18 to 30; from New Zealand, Australia, and 20 countries and territories around the Pacific, came to Festival for the Future hungry to find out more about how they could make a difference in the world.

Some of the issues that speakers and workshop hosts tackled this year included overhauling foreign aid models, fearless leadership, theatre that tackles social issues, ending treatable

24 • www.nzentrepreneur.co.nz

blindness, stopping the use of unsustainable palm oil, climate change, how to better back the LGBTQIA+ community, using art for social change, and much more besides. The passion and drive to tackle some of the big issues facing the world was almost dizzying in its variety. Each person you met at the event had a different problem they want to solve.

Festival’s meant to be a celebration of what young people are doing to create change in the world, so there

was heaps of fun amongst the talking. AUT’s Sir Paul Reeves Centre was transformed into a rainbow riot of colour and interactive exhibits.

The weekend saw musical accompaniments from Beau Monga, Jamie McDell, Tiny Ruins and others. There was a yoga class and an early morning dance party run by Rise & Shine, a Wellingtonbased social enterprise.

One of the stand-out messages throughout Festival was that for these 500 young people at least, so-called ‘clicktivism’ and ‘slacktivism’ aren’t enough for them. They have a pretty sober and realistic idea of the challenges faced by the world they live in, they see a need for people to step up and lead the change, and they want it to be them (and now). As such, there was a

real thirst for practical advice the speakers could provide, especially about overcoming fear and failure.

One speaker, Australian global strategist Holly Ransom, who’s also the world’s youngest ever Rotary President, talked about her self-imposed challenge to do one thing every day that scares her. She doubledared attendees to take it on, and some of them have and are supporting each other on social media to do so. A workshop titled ‘21st Century Leadership’, which flagged ahead that attendees would be out of their comfort zones and required to step up to a challenge, was incredibly popular. This generation of Kiwis is more than ready to make the leap.

Festival for the Future’s popularity means we’ll need

www.nzentrepreneur.co.nz • 25

to decide how to innovate next year to accommodate those who want to come, and to make it more accessible for young New Zealanders from all parts of the country.

As always, this year 50 attendees were there on full scholarships, selected for their passion and commitment to making a difference in their communities. Often some of New Zealand’s most vulnerable and marginalised.

Those young people are exactly the ones who most benefit from being brought together with others who share their vision for a better New Zealand. We know that backing them as a nation will make all the difference to what kind of country we have in 10, 20 years time.

One scholarship recipient from 2014 went back to her community after Festival, started a 125-student volunteering network, and was invited back this year as a speaker. We can’t wait to see what the 2015 crop of Festival attendees does next and we reckon it’ll be spectacular. ■ Festival for the Future is run by the charity Inspiring Stories, led by the 2015 Young New Zealander of the Year, Guy Ryan. Charlotte Graham was one of the event’s organisers. More about Festival for the Future can be found here: http://www.festivalforthefuture.org.nz/ and if you’re looking to invest in fabulous initiatives that better our world find out more here: thefuturefund.org.nz.

26 • www.nzentrepreneur.co.nz

GOT A PRODUCT, SERVICE OR BUSINESS WORTH TALKING ABOUT? Want to grow brand awareness in a more effective and useful way?

TALK TO ESPIRE MEDIA ABOUT OUR CONTENT MARKETING SERVICES We offer a range of ways to attract and retain customers, by creating and curating relevant and valuable content to engage and add value to your audience.

BENEFITS: • Expand your digital footprint • Grow brand awareness • Increase traffic to your website • Thought leadership • Media exposure • Attract new customers • And... grow SALES!

Get in touch with Jennifer now to discuss our options. +64 9 522 7257 (NZT) | jenniferl@espiremedia.com | www.espiremedia.com

Check out our blog for content marketing advice, tips and ideas, plus a free copy of our content marketing guide The Content Creation Cookbook!

SALES

NEGOTIATING WITH DIFFICULT PEOPLE As an entrepreneur negotiation is unavoidable be it with clients, prospects, staff and more and sometimes it gets tricky, people (all of us at times, we are human afterall) can be difficult so what do we do when we encounter these situations so that we get the best outcomes? Alan Smith from Scotwork has four tips for when the going gets tough.

28 • www.nzentrepreneur.co.nz

IT’S A HARD LIFE as a sales person. Customers with ever decreasing budgets, sales managers with ever increasing targets. Sellers have always had to deal with difficult people, maybe aggressive buyers, demanding customers, or obstinate internal colleagues, but these days, people seem to be more ‘difficult’ than ever.

One of the questions we often get asked is, “How do I negotiate when the other side are aggressive, rude or just nasty?”. We have four key tips that will help when the going gets tough.

First things first. Do not get sucked in. The basic ruling emotions of love, hate, fear, lust, and contentment originate in the most basic part of our brain. We humans have three layers of brain: the brain stem, limbic and neuro cortex. Over millions of years of evolution, the core brain stem often referred to as the reptilian brain has been superceded. Layers of more sophisticated reasoning have been added upon this foundation to make us ‘smarter’ than the rest of the animal kingdom.

The trouble is that when we are threatened, frightened, lied to, insulted, cheated or treated badly, all this sophistication peels away and the reptilian (or reactionary) brain kicks in. Once this has happened we lose control of our emotions and sense of perspective; we dig in, fight back, raising the temperature even further, and the negotiation spirals out of control. Or even worse we retreat into our shells and run from the problem, simply giving in. The fundamental fight or flight mechanism.

If we give in, we reward the bad aggressive behaviour, and by doing so we teach the other side that treating us badly gets results. If it works, they will keep doing it. In fact, many aggressive and unpleasant negotiators get their way by winning concessions after whipping the other side into submission, by (in corporate speak) taking all the skin in the game. So stay in control.

Easier said than done, right!

www.nzentrepreneur.co.nz • 29

1

HOW DO WE MANAGE THE SITUATION WHEN PUT UNDER THIS KIND OF PRESSURE? Once they have finished, Recognise the behaviour.

The first question to ask yourself whether it is a ploy or is it natural behaviour?

The answer to this may also depend on whether you are negotiating in a ‘contract’ or ‘relationship’ situation.

If the other side is trying to rile you so you feel uncomfortable and may give in more readily, understand what they are doing. If you react to provocation, it is likely to encourage more of the same from your adversary.

Stay calm and engage your higher brain systems. Let them go through their rant.

Stay quiet and do not engage.

30 • www.nzentrepreneur.co.nz

summarise their key concerns to show you have been listening and making notes and maybe ask them to go through their concerns again.

Be professional. It is very difficult for someone to maintain an aggressive stance for long, particularly if you are calm in response. Resist the temptation to score points. Fighting back will not in our experience advance your immediate interests and may damage the long term relationship. Moreover, if you are dealing with people who use this tactic they may be used to using it and be good at it. Better to re-frame the negotiation on terms you find more amenable.

“

“

Negotiation is a trading process.

Of course, you will have to make concessions if you are negotiating, but make sure that any movement you make is only achieved if they do something for you too.

2

Make any movement on your part, conditional Negotiation is a trading process. Of course, you will have to make concessions if you are negotiating, but make sure that any movement you make is only achieved if they do something for you too.

And get the language right.

Put any conditions that you have on making movement clear, specific and up front before making any offers. It is important to make sure that

your conditions and offers are realistic. Unrealistic, barking mad proposals that work for you, but not them, will cause even greater aggressive behaviour.

Emphasise that the concession offered is because of the logic or content of their argument, not the tone or manner of the delivery. This will help highlight the fact that you have observed, assessed and not been influenced by the adversarial manner.

www.nzentrepreneur.co.nz • 31

“

Plan to take breaks in large and difficult negotiations to consider your strategy and clarify objectives. Time out can help you focus on what you want and need and take some heat out of difficult negotiations.

“

32 • www.nzentrepreneur.co.nz

3

Buy time to think.

In the traffic of a hard and aggressive negotiation, it can be incredibly difficult to maintain calm and control.

You need to create time to think rationally and decide whether you can negotiate, where your flexibility can be, and importantly what you can trade in return.

If you are negotiating in a team, use the other players in the team to buy time by asking them to summarise the position the negotiation has reached.

Plan to take breaks in large and difficult negotiations to consider your strategy and clarify objectives. Time out can help you focus on what you want and need and take some heat out of difficult negotiations.

4

Do not, and I mean DO NOT, just give in.

Giving in is the worst thing you can do because guess what will happen next time?

Sometimes the pressure will be on you and you will be made to feel responsible for delaying or deadlocking a deal, so the temptation is just to say ‘yes’.

Two problems here.

Firstly, there will be a very real risk that you then have to live with a deal that you should never have agreed to. Second, the next negotiation will simply be more of the same.

So buy time. Take a break, meet and discuss strategy for dealing with this behaviour with your colleagues. But don’t surrender.

Negotiations are a part

of our everyday life, we all negotiate pretty much all of the time. Coming across a difficult and aggressive negotiator is not that unusual, they are everywhere. Such people believe that negotiation is about conflict and often use war terminology (“ready for battle…?”).

Remember the words of Sun Tzu in The Art of War, ‘the supreme art of war is to defeat the enemy without fighting’. Engage your higher level thinking systems and stay in control, keep asking questions and explore ways of coming up with solutions that you can both live with. Losing your control will make you appear unprofessional, giving in will be seen as weak. ■

Alan Smith is an Associate Director with negotiation experts Scotwork. To find out more visit www.scotwork.co.nz

www.nzentrepreneur.co.nz • 33

PERSONAL TRAINER

Entrepreneurial Intelligence

with SandyGeyer

34 • www.nzentrepreneur.co.nz

I would like to go out on my own but feel overwhelmed by what I ‘don’t know’. How will I know when I know enough to succeed?

YOU WON’T, AND you never will. The entrepreneurs who fail quickly are the ones who become wrapped up in what they don’t know and stress themselves silly while apologising to everyone they meet for breathing their share of oxygen.

There are many things that you can do to ensure that you have devised a plan that has merit and identified all possible obstacles in advance. But the reality is that there are no guarantees for any businesses

out there and the ones who succeed are most likely to be the ones who focus on what they do know. Once you are clear on “what you got” you are automatically clear on “what you don’t got” and you can then work hard to fill the obvious gaps with the right people or resources.

Remember that what you know now will pale in comparison to what you will learn on this journey and that’s a good enough reason to set off. ■

In each issue, Sandy will be answering commonly asked questions from new entrepreneurs. If you have a question for Sandy to do with entrepreneurship, building successful businesses or the challenges and difficulties faced by entrepreneurs, email the editor at jennifer@nzentrepreneur.co.nz Sandy Geyer is an entrepreneur and mentor and teaches the principles of entrepreneurial intelligence (EnQ), to entrepreneurs in New Zealand, Australia and South Africa. You can visit Sandy’s website at www.enqpractice.com

www.nzentrepreneur.co.nz • 35

Investment Corner

TheMost ImportantThing forEntrepreneurs toProveto PotentialInvestors 36 • www.nzentrepreneur.co.nz

“

WHAT DO POTENTIAL investors care about the most? Is it growth potential?

The technical design? The size of the target market?

The colour of your tie and the slickness of your slide deck?

Well, while all of these can be important, the number one thing potential investors are trying to ascertain when you walk into a meeting is your credibility.

Investors can afford to be very choosy. Many are presented with dozens of ideas for every one they accept. Imagining success is easy - implementing success is the hard part.

So, whatever you can do to establish your credibility, the more likely you are to stand out from the rest and secure funding.

“

So what do potential investors really want proof of? Nathan Rose an experienced Investment Banker who helps prepare entrepreneurs for funding rounds explains.

Real, cash-paying customers will also allow you to point to the track record of growth that you have already been able to achieve, which makes your future projections much more credible too.

What can enhance your credibility?

Revenue and profit. Nothing beats good ol’ cash when it comes to convincing investors of your idea. Having real customers is the ultimate validation from the market that your idea is credible.

Real, cash-paying customers will also allow you to point to the track record of growth that you have already been able to achieve, which makes your future projections much more credible too.

www.nzentrepreneur.co.nz • 37

Market research. If you are

Product design progress. Of course, it may be the case that the very reason you need the outside investors is that you require more money to further develop your idea before you can bring it to market. Even so, you need to show some progress, as no sophisticated investor will hand over cash to an idea without progress towards its implementation. The closer you are to implementation, the better. Working prototypes, existing users (even if they are using your product for free), patents and patent opinions all build your credibility.

38 • www.nzentrepreneur.co.nz

developing a new product or service, it is important to show investors that you have done your homework. Know your competition - is there anything like it elsewhere? If your idea is genuinely novel, be prepared to credibly prove it.

Track record. If you have technical experience within the field your venture operates, make sure your potential investors know about it. Better still is a track record of building other businesses. Best of all is experience in dealing with sophisticated investors all the way to successful exits (such as an initial public offering or buy-out). An incredible track record of success is the reason that serial entrepreneurs such as Peter Thiel have investors lining up to invest in whatever he does next.

“

“

A well-considered financial model builds credibility with potential investors and is a key negotiating tool for the value at which investment takes place.

Other well-known investors.

Smart money loves to be in smart company. Often, fast-growing companies will go through several rounds of funding, and the new investors will always want to know who else has invested in the past.

Rigorous financial projections.

You need to show that you have thought carefully about Having a respected and well- how you expect to monetise known angel investor holding your idea. You should show a stake in your company the cash generating potential will help a great deal when year-by-year and where it comes to raising the next future cash requirements round from venture capital. of the business may be. A If the venture capital well-considered financial firm sees that another model builds credibility with sophisticated investor has potential investors and is a already invested in your key negotiating tool for the company, it will certainly add value at which investment takes place. ■ to your credibility.

Nathan Rose is an experienced investment banker, and offers services in financial modelling, building great pitch decks, and capital raising analysis for entrepreneurs and small business. Find out more here.

www.nzentrepreneur.co.nz • 39

Ecosystem

NZ’sBEIntentTakesOut BestDigitalBusiness(SME)Category atTalentUnleashedAwards We featured Suzanne of BE Intent in our March issue so it’s with great pleasure that we share such good news with you for BE Intent. Suzanne and her team certainly deserve this award. Their dedication to helping reduce overwhelm and stress in the workplace as well as provide a solution to bullying issues is commendable. Wonderful to see judges such as Sir Richard Branson and Steve Wozniak co-founder of Apple agree and consider BE Intent as such a good business proposition too.

BE INTENT, A KIWI company whose tech platform include a support and resiliency app for youth and businesses, has taken top honours at the Talent Unleashed Awards, winning the Best Digital Business (SME) category.

well-being platform and app that is as little as $12.95 a year per user for more than 140 well-being topics.

The awards, run by IT recruitment company Talent International, have a judging panel including Apple coThe company, which uses founder Steve Wozniak, EY technology ‘in a cool way to New Zealand Entrepreneur of help solve the issues of stress, the Year Dan Radcliffe and Sir bullying and overwhelm in the Richard Branson. workplace… and get people The Best Digital Business into the right headspace’ (SME) category aims to has just claimed its award recognise businesses achieving at the Talent Unleashed outstanding results or growth Awards ceremony on Friday in Sydney. It is the first in this through an innovative or uniquely creative approach. space and has an affordable

40 • www.nzentrepreneur.co.nz

R. Earl, S. Hall, D. Radcliffe - Talent Unleashed 2015

BE Intent offers a range of psychological wellness apps for businesses, personal users and youth. In a world first, an antibullying app is also available.

BE Intent is technology for thriving, flourishing, striving, attaining and sustaining.

Disruptive CIO/CTO.

inspirational and passionate about making a difference.

Discussions with Branson’s Virgin were ‘well underway’ with the centre expected to be up and running by the middle of next year. ■

RIchard Branson and Suzanne

“Our intention and purpose is to champion these people across the globe,” Earl says.

“Here’s to the brave, the bold and the brilliant,” he adds.

The benefits for the winners of the awards may extend The awards, now in their third beyond the kudos of the year, aim to ‘kick start a few awards themselves, or indeed heroes of the tech sector’ the chance to spend time with says Richard Earl, Talent Branson. Earl told Techday International Managing last month that he plans to Director. Earl says the technology sector is driven by set up a Tech Entrepreneur’s many fantastic yet unheralded school in Sydney, with winners individuals and organisations from the awards invited to attend the training. who are inventive,

Air New Zealand Chief Information Officer was named runner-up for the Most

www.nzentrepreneur.co.nz • 41

PARTING SHOT

Everything you’ve ever wanted is on the other side of fear.

-George Addair