Author: Ethan Theo

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles, has worked with numerous companies in a wide range of industries since 1982 and has spoken at many venues including the Shakespeare Globe Theater in London.

Categories
Operations

Merchant Account 101: Newbie Questions on the Merchant Account Field

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If you’re new to the world of merchant accounts, then you probably have a lot of questions. Here are 18 common questions and their answers – enough to get your business well on its way to accepting credit cards online or offline.
Q. What is a merchant account?
A. A merchant account, sometimes referred to as credit card processing or payment processing, lets businesses accept payments through credit cards, debit cards, and gift cards. To begin accepting credit cards, a business must work with a merchant account provider aligned with an acquiring bank to apply for a merchant account. That merchant account belongs solely to your business and you are responsible for it in every way. Your merchant account is subject to all the rules established by Visa and MasterCard (and possibly with American Express and Discover).
Q. What is a third-party provider?
A. Third-party providers, also known as third-party payment processors, are similar to merchant accounts in that they allow your business to accept credit card payments. However, you do not need to apply to a bank. Instead, you apply to the third-party provider and the bank never sees your application. It is often easier to get a merchant account through a third-party provider, because some banks view ecommerce businesses as high-risk ventures. The merchant account that you use is operated by the third-party-provider and shared among multiple businesses. Unlike establishing merchant accounts, opening an account with a third-party provider requires no application process or underwriting evaluation.
Q. What are the fundamental differences between a merchant account and third party provider?
A. To obtain a merchant account, your business must apply directly to the bank. Applying through a third-party provider omits the need to work directly with the bank. As stated above, it may be easier to apply through the third-party provider because banks view many ecommerce businesses, especially new ones, as high-risk ventures. However, when you work with a third-party provider, your business must follow all of that provider’s rules and pay its fees. In contrast, if your business has its own merchant account, it is directly subject to the rules established by Visa and MasterCard (and possibly Amex and Discover, if you choose to accept those payments). Therefore, if your business is able to get its own merchant account directly from the bank, in most circumstances this is the preferred solution for accepting credit card payments.

For additional information, please click on: intel.web.cedant.com/cblog/index.php?/archives/2006/22.html

Q. What kind of costs do merchant accounts carry?
A. Costs associated with merchant accounts can be grouped into two categories: setup costs and ongoing costs. Setup fees include the fee for the initial application, the setup/installation fee, the costs of necessary hardware and software, and, on rare occasions, a security deposit or a minimum reserve amount that must be maintained in the account. Ongoing fees include the discount rate and per-transaction fee, daily batch fee, authorization/verification charges, voice/touch tone authorization fees, and chargeback fees. Additional ongoing costs may include annual renewal fees, fraud protection program fees, monthly gateway fees, monthly statement fees, and monthly minimum fees. The actual types and amounts of costs vary among merchant accounts, so be sure to request a complete list of all fees before signing up for any particular merchant account. Our free ebook defines all the relevant fees associated with a merchant account.

Download at http://www.intelli-collect.com/accept_creditcards.pdf

Q. Do American Express and Discover charge these same fees?
A. The fees described above are applicable only for Visa and MasterCard. For American Express and Discover, the merchant account provider controls only the transaction rates. All other rates are controlled by those companies themselves. Amex offers two different pricing plans, depending on your charge volume. Discover, on the other hand, has a percentage-processing fee that varies by organization, but is usually between 2.50% and 3.25%. Also, there is no sign-up fee for Discover.
Q. How can I process American Express and/or Discover credit cards?
A. If you wish to accept another type of credit card, simply notify your merchant account provider. In most cases, the provider can apply to Amex, Discover, and other companies on your behalf.
Q. What options do I have for accepting credit cards?
A. You can accept credit cards in many different ways. If you have a retail storefront, you can accept credit cards on site with a physical terminal, or you can use a virtual terminal to enter customers’ credit card information via the Web. A service known as Dial Pay allows you to call a number and enter customers’ credit card information through your telephone keypad. You can also accept credit card payments through mobile or wireless devices, or through your company’s website.
Q. What do I need in order to accept credit cards online?
A. You will need four things to accept credit cards online: an online shopping cart, a payment gateway service, a credit card processor and an authorized Internet merchant account. The online shopping cart allows customers to make their purchase selections and then check out, providing their credit card information for payment. The online shopping cart sends the information to a payment gateway service (a secure certificate must be employed), which acts as an intermediary mechanism between your website’s shopping cart and the banking networks. Once the customer’s card-issuing bank verifies adequate funds and reports this information to the merchant account provider’s acquiring bank, a notice of approval is sent back to the payment gateway system which, in turn, sends the notice to the shopping cart for display to the customer. The credit card processor then deposits the funds (minus any associated fees) into the merchant’s bank account. The final piece, the Internet merchant account, is available to the merchant when the credit card processing company approves his/her application and authorizes the merchant to accept credit cards.
Q. How can I reduce online credit card fraud?
A. The key to reducing online credit card fraud is to communicate with your customers and be sure to get their authorization for all transactions in writing, whether via mail or email. You should also always verify the 3- or 4-digit security code (also known as CVV2) on the back of the credit card. (On American Express cards, the code is located on the front.) Because it is not encoded in the card’s magnetic strip, it is a reliable way to verify that the purchaser has the credit card in his or her physical possession during an online or telephone transaction. An Address Verification System (AVS) check should also be employed, comparing the customer’s billing address with the address indicated on the magnetic strip of the credit card. If there is an AVS mismatch, the transaction may be interpreted as a higher risk.
Q. How can I accept credit cards if I don’t have a website?
A. If your business doesn’t have a website, you’ll need to use a physical or virtual terminal to process credit card payments. A physical terminal lets you swipe the customer’s credit card on site. A virtual terminal lets you enter credit card information via the Internet. If you need to process only intermittent charges, Dial Pay (using the phone to input your customers’ credit card information) is probably your best option because of its associated lower monthly fees.
Q. What tiered rates do credit card processors apply to merchant accounts?
A. Traditional credit card processors use a three-tiered pricing scheme for their retail merchant programs: (1) the qualified rate, which is the best rate available; (2) the mid-qualified rate, for transactions that are keyed in; and (3) the non-qualified rate, for all other transactions. Some merchant account providers also discount their fees for check cards, creating another tier. Internet-only merchant accounts are usually limited to only two tiers: (1) the qualified rate, which is equivalent to a retailer’s mid-qualified rate; and (2) the non-qualified rate. Hence, online-only businesses generally pay more for their credit card transactions than do their bricks-and-mortar counterparts.
Q. What is Interchange Cost Pricing?
A. Interchange Cost Pricing is a pricing scheme for credit card processing that, for most businesses, is significantly less expensive than traditional pricing schemes. With Interchange Cost Pricing, each charge is made of (1) a mark-up of a certain rate category and (2) a set fee per transaction. The end result is often significantly less expensive than the traditional three-tier (qualified rate, mid-qualified rate, and non-qualified rate) pricing scheme. Ask your credit card processor to use a representative sample of your transactions to demonstrate the associated costs incurred under each pricing scheme
Q. Is it better to lease or buy a credit card terminal?
A. If you have the cash to make a large up-front payment and buy the credit card terminal upfront, this often makes the most sense. Over the life of the terminal, monthly lease payments add up to far more than the up-front purchasing cost. However, there are many other factors to consider. Ask your accountant whether you’ll be able to deduct the interest paid on monthly payments from your taxable income. And consider the implications of having the outstanding balance of the lease shown as a liability on your company’s financial statements. If having title to the credit card terminal is important to you, then you should buy it outright. Finally, consider the warranty service (and provider) that comes with having a purchased or leased credit card terminal. In truth, almost all businesses are probably better off buying a credit card terminal than leasing, but the decision depends on your specific circumstances.
Q. How difficult is the underwriting process?
A. The underwriting process is pretty straightforward. The underwriter will review your completed application, analyzing the nature of your business, your credit rating, and your history in credit card processing, if applicable. These and other factors are considered in deciding whether to approve your application. The decision is usually made within one or two business days.
Q. How does my business actually get the money?
A. After the credit card transaction has been approved, the amount of the transaction (minus any associated fees) is deposited directly into your bank account, usually within one or two business days of the sale. Some merchant account providers mandate that you open a bank account with their acquiring bank.
Q. Can credit card payments “bounce” as checks do?
A. One advantage of accepting credit card payments is that they cannot “bounce” as checks do if there aren’t enough funds available. However, the customer does have the right to challenge any charges on his or her credit card statement. If one of your transactions is challenged, the credit card company will contact your business, asking for proof of the transaction. If you aren’t able to provide adequate proof (within a designated timeframe), you will lose the transaction amount. Likewise, if the transaction was paid with a stolen credit card, you may be responsible for the transaction amount. Hence, it pays to do your due diligence and make sure that the purchaser is the person to whom the credit card was issued.
Q. Why should I accept credit cards?
A. Customers appreciate the convenience of paying for their purchases with credit cards, but there are many benefits for the business as well. First and foremost, your sales increase, primarily because customers are more likely to make impulse purchases when paying with credit cards. Some studies have shown that accepting credit cards can increase your sales by 1,000%. Also, accepting credit cards can improve your business’s cash flow, because you can receive payment within a few days, which is a definite advantage over waiting up to one week for a check to clear. Accepting major credit cards also increases your credibility from the customers’ perceptive.
Q. How do I decide which merchant account provider to use?
A. Of course, cost considerations must be weighed. Compare all merchant account fees, doing your best to contrast apples to apples, so to speak. Beware of any company that does not disclose important rates, such as their non-qualified fee or if any termination or cancellation fee is imposed. The inability to disclose all rates is tantamount to lying by omission. Many people forget to also consider the criterion of customer service. Reliability and responsiveness become important if problems arise in the future. If you are not receiving exemplary service before you have signed on with a merchant account provider, do not expect such service to improve after you do. Indeed, reward ethical, honest and responsive companies with your patronage.
AndyLaxPhoto.jpgAndy Lax has worked in the credit card processing industry for over five years and is now an Account Manager at IntelliCollect, a merchant account provider that enables business owners to accept credit cards and electronic checks.

Categories
Networking

Socially Challenged?

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Far from the days of the old school tie and unusual handshakes, the last decade has seen an unparalleled rise in business networking. Many of the traditional networks, such as the IoD, Chambers of Commerce and Rotary have had to rise to the challenges posed by a host of groups, both international and local.
While the majority of British businesses still do little proactive networking, an increasing minority do so with vigour. Opportunities abound, ranging from breakfast meetings, through lunch and into dinner. There have even been twenty-four hour charity ‘networkathons’, so you don’t even have to go home for want of an event to go to!
There’s a new kid on the block now, however, and he’s making a big impact very quickly. Over the last ten years there has been a slow but steady growth in the number of networking organisations appearing on the internet. In the UK, Ecademy, formed in 1998, has grown to become the most recognised online network, while internationally, networks such as Linked-In from America and the German network Open BC (now Xing) have become well-known brands.
In the early days of Ecademy, it was seen as an organisation for ‘tecchies’, with few people not interested in the growth of the internet participating. Now, however, it boasts over 100,000 members worldwide, with several thousand people online at any one time.
All of a sudden, networks like Ecademy have started to appear on a frequent basis. Every day I hear about new websites for businesses, whether they be general b2b forums, industry focused or niching in other areas.
Why this sudden growth in networking online? I put it down to two main reasons.
First of all, the internet is suddenly much more accessible. With the advent of broadband, people are much happier spending time surfing websites, posting profiles and messages and blogging. Without the long download times that frustrated us when we were using telephone modems, we can do so much more online.
In addition, we can access the internet more of the time. Previously we were tied to our offices. But with more people working from home, owning a home computer as well as their office one, or working from a laptop, more of us have internet access 24/7. Don’t believe me? Post a message on a site like Ecademy or send an email after midnight and see the number of responses you get!
With new mobile technology, such as the Blackberry, allowing us to access the internet while we travel, the online world has suddenly become even more open to us.
The other key reason for the growth of online networking is demographic. Many of us have had to learn about the internet, emails, text messaging and other new technology as adults. However an increasing number of people are entering the job market and business community for whom texting, instant messaging and blogging are a way of life. A whole new vocabulary has emerged, which even my computer hasn’t kept up with given the amount of words in this article it has wanted to spell-check!
Julian Woodward, a software architect and developer with a particular interest in this area, outlined this change to me recently. Julian explained how, while older generations are used to moving on from one set of close contacts to another as our lives and careers progress, younger people are used to keeping in touch with a much wider circle.
“Close contacts are kept in the circle through text messages and instant messaging, while second tier contacts are maintained through the use of social networks.”
The ‘MySpace Generation’ is now having a huge influence on the way we do things. The Social Networking phenomenon kick started by Friends Reunited has been taken on with a vengeance by sites such as MySpace, YouTube and, increasingly, Facebook. People now are far more likely to buy, interact, court and market themselves on the web.
What now seems to be happening is an increasingly indistinct border between online networks used for social purposes and those used to promote businesses. Bands are now reaching Number One in the charts purely through building up support online, while an increasing number of business people post profiles and blogs on UTube and MySpace to reach a wider client base.
As a result, the term ‘Social Networking’ has become the catch all for the online networking revolution. Increasingly businesses are being compelled to accept the need to embrace social networks, whether to market themselves externally, or to aid knowledge management internally.
As more of the MySpace Generation come to work, the higher the expectation is that they will be able to connect with others online to get the information they want. Jeff Schick, the VP of social computing software at IBM recognises the importance of this, “the thing that we see is an expectation of these sorts of tools in the business context when these young folks join the workforce.”
For the business who wants to embrace social networking for the first time, it can be a tough decision where to start. There are a vast range of sites, many of whom offer the same, or similar, functionality.
For smaller businesses, who want to use the internet to market more widely, then the first step is to decide what you want to achieve. Like any network, you can usually determine a key benefit to be derived from each of the various opportunities available. These normally fall into one of three areas:
1) Profile Building
2) Brain Building
3) Referral Building
Profile-building networks, such as Ecademy and BT Tradespace, allow you to build a wide range of contacts by posting your own details, searching other people’s, blogging, joining clubs and exchanging messages. Many people will build large personal networks, the trick is to be able to manage these so that it is not just a numbers game.
Brain-building networks focus on an exchange of information and support. Often themed around one area of business, such as Web Wednesdays and Wellbeing Network, they bring together professionals to exchange ideas and help to solve challenges.
Referral-building networks, such as the US’s Direct Matches and the new UK network, Word of Mouse, are more concerned with business building. Direct Matches is very much the home of network marketing businesses looking for referrals for their distribution teams, while Word of Mouse is based around small local groups getting to know each other, rather than global network-building.
Networks such as Linked-In take the referral building approach one step further by inviting members to post up details of who they know to enable them to find connections to the people they want to talk to through their networks. Based around the theory of six degrees of separation, members are able to tell how many steps they are from any person on the site, and to whom they need to speak to get the introduction.
Naturally there is a degree of overlap between the networks and the benefits on offer from each aren’t confined to the areas above. Finding the overriding theme, however, helps the business owner to identify the right network for them.
The big mistake for any businessman to avoid is turning their back on traditional face-to-face networks in favour of social networks. It may be easier to spend a few minutes online each day rather than taking the time to meet people, but business and referrals will always be built on developing trust and understanding. That takes time, and it takes getting to know each other.
Social networks play a tremendous role in initiating and managing relationships; but the development of relationships will still take place at one-to-one meetings, whether in each other’s offices, at networking events or in meeting places such as the IoD Hubs.
As with existing public face to face networks, the corporate presence on social networks appears to be low. There are natural barriers to entry from the corporate perspective; concerns about the time their staff spend unproductively on the net and how they may misrepresent the corporate image are understandable.
Jeff Schick feels that concerns about wasted time are unfounded. “In the clients we’ve worked with to date as well as what we’ve seen within IBM, I think that we see the exact opposite.
“While a person might be interrupted because they are a recognised expert in a certain particular area, when there is just in time information required by another individual in the company, the efficiency and productivity involved in building that network and the fabric of interaction provides a more efficient and productive model for people to do their work.
“The organisation holistically is improved by that level of interaction, by matching people who know to people who need to know.”
IBM’s focus, as with many corporates embracing social networks, is less on marketing themselves to prospective clients but on improving communications internally, between people working on the same challenges oceans apart and involving staff, partners and customers in their development process.
The use of such networks not only makes processes more efficient but breaks down organisational silos, impacting on the service received by customers.
With the internet becoming an increasing part of our everyday life, the social networking revolution is set to gather momentum. As more people work from home, either for an employer or for themselves; take on consultancy roles for other businesses and as customers talk to each other with more ease it is vital for all businesses to embrace and make the most of the new technology.
It is technology that allows small businesses to compete with large, local businesses to trade overseas and which is breaking down traditional barriers to entry rapidly.
Traditional networks are not fading away. They will be with us for a long time to come. They are now being supplemented by another tool, one that will help them to build even bigger networks, exchange more information and win more business.

Links:
BT Tradespace
Direct Matches
Ecademy
Facebook
Linked-In
MySpace
Word of Mouse
Web Wednesdays
Wellbeing Network
Xing
YouTube

* * *
AndyLopataPhoto.jpgAndy Lopata is one of the UK’s leading business networking strategists. He is the co-author of two books on the subject, including the Amazon UK bestseller ‘…and Death Came Third! The Definitive Guide to Networking and Speaking in Public’. Andy offers a full consultancy service and works with companies to help them realise the full potential from their networking.

Categories
Franchise

What Do You Need to Pass a Franchisor’s Test?

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Buying a franchise is a lot like marriage. Two parties enter into a relationship with the expectation of mutual benefit, long-term support and common goals. When entering into marriage, both people spend a great deal of time learning about each other and making sure they are a good match before making the commitment. The same is true for franchising. Both the franchisor and the franchisee gather information about each other and evaluate whether there is a good match. Although it may not be immediately evident, a franchise company is under no obligation to award a franchise to just anyone who can afford the franchise fee. In many cases a franchisor has as much or more at risk when a franchisee fails.
A franchisee that fails loses money, but a franchisor must report every failed franchise unit in a document called a UFOC (Uniform Franchise Offering Circular). This document is provided to each and every person interested in buying the franchise. A company that shows significant franchise unit failures will have a more difficult time attracting new franchisees. A failed store can also tarnish the brand.
Like any good business, a franchise company will want to populate their system with great people. Since franchising is based on a strong, consistent brand, a franchisor looks for franchisees who will present the brand in the most positive light. In the same manner, they only want franchisees that are able and willing to learn the system and work within its specific parameters.
In many ways, this is actually an advantage for women entrepreneurs. Historically, women are seen as better listeners and more likely to follow the set of rules provided by a franchisor. Experience in a particular industry is not as important as general business knowledge. Marketing and sales experience are often required and these are also areas where women tend to be strong and have experienced success.
When researching a franchise company, you will find that they may have as many questions about you as you do about the company. A franchisor is putting their time, money and reputation on the line, so most have developed a “profile” of a successful franchisee which they use to determine if you are “right” for their business.
While this may sound exclusionary, franchisors have a very good reason to learn what works and to stick with it. Successful franchise companies want their franchisees to excel. They have refined their systems around a set of standards they have learned franchisees need to thrive.
Yes, it’s true. You can’t buy a franchise as easily as you can buy a condo or a pair of Manolo Blahnik shoes. You must first pass the franchisor’s test. These are the most common items a franchisor looks for in a potential franchisee:
• Money may not buy happiness but you will need it to buy a franchise. Most franchisors have a minimum net worth and liquid capital requirement for their franchisees. While this may seem obvious, there are other demands on cash availability beyond the initial costs of the franchise – such as the length of time it will take your business to start making money and the living expenses you will have during that time. There are financing options available that may help you qualify if you are short of capital, however no good franchisor will want to see you start out your business heavily in debt.
• Personality is paramount to passing the “test.” Few businesses run themselves. They require hard work to get them up and running. There are some personality characteristics that seem to be common in all successful franchisees. Other characteristics are specific to individual businesses.
o Are you willing to follow a system or are you the type who wants to do everything your own way?
o Do you enjoy working with people?
o Can you lead a team of employees?
o Are you focused and decisive?
o Do you enjoy solving problems?
o Can you set and meet personal goals?
These are some of the questions a franchisor may have for you and your answers will determine not only if you can qualify for a particular franchise but also if you will be a successful franchisee.
• If the shoe fits, you’re a match. Fit is another area franchisors look for. Each company has its own culture and franchisors realize that a franchisee must be comfortable with the corporate staff as well as the other franchisees – and vise-versa.
• Does experience matter? Franchising is one area of business where your specific experience is less important than other factors. That’s because of the excellent training provided by most franchise companies. In truth, many franchisors prefer franchisees without industry experience because it is easier to train someone in a franchisor’s system than it is to “un-train” a franchisee who has ideas that may conflict with the way a franchise system works. Again, it is the overall business experience you’ve attained through life that will make you a “star” in a franchisor’s eyes. One attribute that is required by most franchisors is that you have business acumen and understand how the parts of a business contribute to the whole.
The goal for every franchisor is successful franchisees. As much as you may want to qualify for a franchise opportunity that interests you, remember that the franchisor has the background and experience to know what type of person makes a good franchisee in their system.
Those strappy sandals you want may look great but it they don’t fit, you’ll be unhappy in the long run. The same is true for buying a franchise. It really has to be just right for you to provide you with the opportunity for long-term success, so passing a franchisor’s test is just another way to be sure you’ve chosen the right business.
KimberlyEllisPhoto.jpgKim Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.

Categories
Communication Skills

7 Sure-Fire Ways To Kick Start Your Presentation

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Surely by now you know how important it is to start strong but how exactly do we start our presentation with a bang? Here’s 7 sure-fire ways to start your presentation that will guarantee to knock the socks off your audience.
1. Open with a humorous/emotional story that leads to your key message
I have seen that been done a lot of times – especially by speech champions – with almost guaranteed success. We love stories, especially those that makes us laugh and have valuable lessons to teach. So when you start with one, we immediately get drawn into it like moth to the flame. Your personal anecdote gives us the opportunity to know you at a deeper level and it adds memorability to your message. Even weeks after your presentation, we will still remember your message because of the story you share.
A variation to this is to tell half a story and then proceed with your points. Once you are done, end off with the other half of your story, which by now will make a lot more sense.
2. Ask a question that gets us thinking
Why is it that some speakers can command the entire floor with ease while others struggle to keep their audience awake?
If this has been a speech opener, it will have set you thinking. You will be curious yourself. The question will trigger some memories and the next thing you know, you will be looking at the speaker for some answers. Such a rhetorical question allows your audience to play an active role in your speech – you get them involved. It keeps them engaged in your speech too as they seek to resolve the gap you have created by the question you ask.
3. Do a demonstration that leads to your message
A demonstration for the sake of doing one is meaningless. However if executed properly, it proves a point which increases your credibility as a speaker and also sets up your presentation for success.
At one of my speeches some time ago, I handed a can of sweets to one of the students in the first row. I instructed him to take one and pass. As planned, there were only enough sweets for the first row, which got the rest of the students sulking. Some of them even complained, loud enough for me to hear, which prompted my first line:
“Many of us wait for things to land on our laps. As a result, we end up get nothing.”
They quickly got embarassed and became quiet. As expected, this statement also had the first row of students laughing, which prompted by second line.
“Many of us also choose within what we are given. You (referring to the students in the first row) could have ask for this box of Godiva chocolates…”
And then I whipped out the box from my jacket and the whole room went silent. The students were all visibly embarassed and were grinning sheepishly as I proceeded my speech. I had no problem engaging them after that since I have effectively proven to them that THEY commit such mistakes all the time.
So the next time you want to prove a point, do a demonstration. Trick them if you need to, but more importantly, show them point blank why this presentation is so important to them.
4. Shock ‘em with facts and numbers
Tell us something that we don’t know and you immediately get our attention. This is why shocking facts and numbers are effective at grabbing your audience attention. A “do you know…” statement works extremely well.
For example, do you know that in New York, if you commit a crime, you have less than one chance in a hundred that you will ever be executed for it? Or in our local context, you may have seen an advertisement that starts off with “Do you know that a thin film of clean standing water of the size of a 20-cent coin is all an Aedes mosquito needs for its eggs to survive?”
So the next time you give a presentation, research for shocking facts or numbers about that particular topic. Go to your trusted google search page and type “[topic] + do you know?” or “[topic] + shocking facts” and viola, you have a winning introduction!
5. Start off with a cartoon or video, funny is optional
A short video clip adds colour to your presentation in more ways than one. It creates visual connection. It engages all five senses. It commands attention. However make sure that the video is not too long, it should not take up more than 10% of your presentation since it is more like a preview. Also remember to pick a video that effectively sets up what you are going to talk about.
In one of the upcoming seminars, the organizers are going to show a clip from “The Truman Show” starring Jim Carey. Recall the part where he discovered that his life was part of a script? He was so adamant about living his own life that he decided to leave. He sailed out to the “sea” hoping to get away, only to hit a white screen. The turning point came when he bravely opened the white door and walked out of the stage set up.
This scene was extremely apt for the seminar since it was themed “Your First Step” and the objective is to encourage all the participants to courageously step out and live their mark. Not only does the video lead to the key message, it creates a memorable anchor, one that will not be easily forgotten by the audience.
6. Pause…
That’s right. Inaction could be one of your most powerful tools as a speaker. Most speakers rush to start either due to their nervousness or lack of experience. However if you observe powerful speakers, especially politicians, they take their time. Every second of silence equates to a pound more authority. As James C Hume commented, “Men, as well, as women, whether tall or short, can gain stature through strategic silence.”
So the next time you give a speech, take your time to walk up the stage. Find the center point and make your strategic pause. Don’t be afraid to look into the eyes of your audience. Smile at them. Once you have ALL their attention, begin with your first line.
7. Do something different (or crazy)!
Like my friend Darren Fleming who turned his back against his audience as he speaks. That sure make his audience love him even more. What counts is the novelty BUT make sure that you can relate it back to the objective of your speech. Click here to understand why Darren did what he did.
Or Darren La Croix, 2001 World Champion of Public Speaking who literally fell on his face to prove his point – failing is no big deal! In fact, one of the reasons why he won was because of his outrageous act. And then there is another speaker in the 80s who stood on stage without speaking for a whole one minute! It was clear that he was suffering from stage fright and performance anxiety. The contest chairperson was forced to come up on stage to escort him down. And just at that moment, the speaker blurted his first line, “When you are in the midst of a battle, do you have friends who continue to cheer you on or do they give up on you within a minute?” (referring to the contest chairperson). Now that was a powerful and poignant point!
And the list goes on. There is no boundaries to your creativity. My challenge to you is to work your creative juices and come up with an act that no one has done before. Even if it fails, at least you had fun!
EricFengPhoto.jpgEric Feng is the go-to guy if you want to learn how to impress your investors and customers through public speaking. For more tips and tactics that you can use immediately in your next presentation, visit The Public Speaking Blog.

Categories
Starting Up

Dont Fall for These 7 Traps

procrastination.jpgStartup Students: A lot of people have a Great Idea. It might be a new invention or a local service business. Unfortunately for consumers, many would be entrepreneurs are waiting for “the right time” to start their Real Business. They have plenty of reasons (excuses) for the delays. From lack of time to lack of experience, our minds have creative ways of rationalizing our fears.
Here are 7 common excuses for not starting a Real Business, along with strategies for overcoming internal fear, uncertainty and doubt (”Internal FUD”).
1. I’m too busy right now. I’ll start when I have more time.
2. After I get an MBA, I’ll be ready to start up.
3. I hate sales.
4. I’ll do some research after South Park.
5. I don’t know anything about business.
6. I don’t have startup capital.
7. Before doing anything else, I need to write a business plan.
7 Lies That Prevent Your Great Idea from becoming a Real Business [Startup Students]