Communicating effectively for business
Effective communication is a vital tool for any business owner. Your success at getting your point across can be the difference between sealing a deal and missing out on a potential opportunity.
You should be able to clearly explain company policies to customers and clients and answer their questions about your products or services. It is crucial to communicate effectively in negotiations to ensure you achieve your goals.
Communication is also important within the business. Effective communication can help to foster a good working relationship between you and your staff, which can in turn improve morale and efficiency.
This guide will explain the key aspects of both verbal and non-verbal communication, how to listen to and understand others, and how to make the best possible first impression on the people you encounter in and around your business.
Understanding communication
Success in any conversation is likely to be achieved through both parties listening to and understanding each other. Practice the following skills in any business situation where you communicate with others.
Key communication skills
Useful communication skills for building positive interpersonal relationships include:
- active listening
- understanding non-verbal signals
- maintaining eye contact
- assertiveness
- being mindful of people's individual space
- using positive body language
- dealing with different points of view.
Personal awareness skills that help with communication include:
- understanding the benefits of a positive attitude
- awareness of how others perceive you
- self-confidence
- presentation - dressing appropriately for different occasions.
It also helps to consider the circumstances surrounding your communications, such as the situational and cultural context.
Verbal communication
Verbal communication can bring great rewards to your organisation when carried out successfully, but it can also be hazardous to your business when approached the wrong way. The words you use are important, but equally important is the way you express them.
Using positive language
You are more likely to achieve positive outcomes when you use positive, rather than negative, language.
Positive language is helpful and encouraging; it suggests alternatives and offers solutions to problems. It is language that stresses positive actions and consequences.
For example, if you are negotiating with a supplier who is not willing to budge on price, your language should convey the desire for a 'win-win' scenario (i.e. a situation that both parties can be happy with). This is likely to make your supplier more willing to negotiate (perhaps on issues other than price, such as delivery costs or payment terms), than if you also refuse to budge and accuse them of being inflexible.
Using 'I' statements
'I' statements, rather than 'you' statements, often yield better results in verbal exchanges.
For example, 'I need more information to make a decision' sounds much better than, 'You need to give me more information before I can make a decision'. The reason the 'I' statement sounds better is that you are saying what you need rather telling someone what they should do.
Assertiveness versus aggression
Assertiveness (often through the use of 'I' statements) is stating what you plan to do. Instead of coming across as hostile, you are making a statement about something you feel or perceive.
Aggression is completely different and is usually perceived as hostile or unfriendly behaviour. It often uses the word 'you'. People can become unhappy when you tell them what to do. Even when talking to employees it is wise to soften language when asking them to perform tasks, as they are likely to respond better to requests than orders.
Consistent assertiveness shows others that you're confident and open to suggestion, but won't be taken advantage of, leading to a mutually acceptable outcome.
Speaking style
Speaking style means the tone, pitch, accent, volume and pace of your voice.
The same sentence can be conveyed, and understood, in entirely different ways based on the way in which it is said. People you speak to can be motivated by a positive speaking style, just as they can be put off by a negative style.
You should always try to speak with a positive voice - avoid monotone responses, or talking too quickly or slowly. Be as clear as possible, and try to engage the listener, as this is far more likely to promote the response you are after than if they leave the conversation deflated.
Asking questions
The more you can find out about a person's needs, wants, interests and situation, the easier it is to reach win-win outcomes. You learn more about people by asking them the right questions and by taking the time to listen to their answers.
People also tend to respond well when they feel their opinion is being sought genuinely by another person, particularly in a business situation where conversations can have important consequences for both parties.
Types of questions
You can use the following types of questions in any business situation:
- open questions - questions which require a person to elaborate or explain, helping to build rapport and encouraging them to open up. Well-chosen open questions encourage responses to questions you might not have thought to ask; for example, 'How has your business changed in the last few years?'
- closed questions - questions which require only a short, specific answer, such as 'yes' or 'no', such as 'Are you happy with the proposal?' These are good for finding out facts, limiting or guiding a discussion in a particular way and gathering specific information from which you can generate an open question.
- probing questions - more targeted questions designed to develop a more specific understanding of the other party's view on a matter. For example: 'How could I change my offer so that this proposal will be a win-win for both of us?'
- confirmation questions - used when you need to be sure the other party understands your message. 'What benefits do you think this proposal will bring to your organisation in the next year?'
- summary confirmation questions - used to clarify your understanding of the other party's needs. For example: 'Could I summarise what you've just told me so I can check I've understood you? You said that you want a computer system that will allow you and your staff to complete their tasks in half the time, and training for all your staff on using this new system?'
Using questions in a conversation
Generally, you will have most success when using a range of question types in a conversation. Using open and closed questions together can help you guide a conversation and encourage the other party to contribute.
Using only open questions can result in digression - a conversation straying off course. Using only closed questions can make it too easy for the answering party to say just yes or no. Because they only encourage a basic response, closed questions are not good rapport builders or conversation starters. It is therefore important to use both types of questions for maximum success and engagement.
Listening effectively
It's one thing to ask good questions - it's another to really take on board the answers. You can often be distracted by your own thoughts, feelings and opinions and so tend to hear what you want to hear or, more usually, what you expect to hear.
You're often thinking about your next move or what you should say next, or you're trying to second guess where the other party might be leading you. To listen effectively you need to suspend these internal thoughts and give your full attention to the speaker. Only then can you really hear what they're saying.
Active listening
Active listening means paying attention to the speaker – both to verbal and non-verbal cues. For example, if you see them look down or appear uncomfortable in some way while saying 'That's all I can tell you at the moment' you might deduce that they are withholding information.
This type of active listening alerts you to the opportunity for a well constructed open or probing question, to gather the missing information. If you're not listening actively, it can be easy to miss signs like these.
Paying attention
It is vital to make sure you don't let your attention wander. Important pieces of information can be missed if you are not alert and engaged. This can lead to misunderstandings later on, or possibly embarrassing situations where you appear to have forgotten something you have been told.
One way to help you concentrate during a business conversation is to ask the speaker questions. Not only will this help you to guide the conversation where you want it to go and at the pace you want, it can also ensure your mind is focused on the subject at hand.
Confirm your understanding
Active listening should ultimately lead to a complete understanding of what another person has said. You can do this by feeding back to them, in your own words, your understanding of what they've said.
An easy way to do this is to clarify, paraphrase or summarise. Examples of summary question in these cases include:
- 'So what you're saying is...?'
- 'So what you need from me is...?'
- 'So in summary what we've agreed is...?'
It's usually a good idea to check your understanding regularly during a conversation. You can paraphrase or summarise:
- when the other party has provided a large chunk of information
- whenever something is unclear to you
- when moving to a new topic or area for discussion
- at the end of the discussion.
Clarification is also a useful tool when the other party seems to be asking for a lot of information. If their questions are poorly structured, too broad or ambiguous, you might give away too much information by answering them straight away. It's often a good idea to clarify a question before you answer it.
Non-verbal communication
A huge part of the way we communicate occurs through non-verbal cues in conversations. This includes your body language, the way you look at others during conversations and the facial expressions you use.
Body language
Body language can back up the words you use and how you say those words, but can also betray your true feelings if you are uncomfortable in a conversation.
There are 2 main aspects of body language to consider:
- posture - how you sit or stand during a conversation is important. Your posture should be open, with your body turned to face the other person whenever possible. Leaning forward slightly can convey apparent interest in what they are saying, and that you are actively listening to them
- gestures - simple gestures such as nodding your head and opening your palms can have a positive effect on a conversation. You can move your hands during conversation to convey a sense of animation about a subject, though be careful not to overdo it. Maintaining eye contact is very important.
Negative body language creates a negative impression and tends to impede progress. Someone glancing at their watch, playing with their pen and doodling during negotiations will come across as disinterested or uncooperative. This non-verbal communication creates the impression of disinterest and may lead the negotiation to falter or break down.
Other negative body language you should avoid includes:
- clenched fists
- folded arms
- rolling eyes
- shrugs and shuffles
- imitation of the other person's actions
- finger pointing.
You can learn positive body language easily, by watching how other people conduct themselves during conversations. Anything that seems positive is worth copying, while anything that repels you in a conversation should be avoided.
Eye contact
Looking people in the eye when talking to them is a good way to let them know you are listening to them and interested in what they have to say. Eye contact can also convey sincerity and confidence, which is often important in business situations.
Not looking the other party in the eye can sometimes make you appear disinterested, nervous, or even shifty. If someone begins to have negative views such as these in a business situation it can sometimes be difficult to reverse them, so you should try to maintain eye contact and focus on whoever you are talking with, whether they are a customer, client or employee.
Of course, it is important not to stare them out, accidentally or otherwise.
Facial expressions
Our faces are extremely expressive, and often give our emotions away before we have a chance to say what we feel. It is important to try to keep your facial expressions positive during a business conversation.
Smiling is very important - a simple, natural smile is known to help the other party relax during a conversation. As explained above, keeping eye contact is also a key to success.
Avoid negative facial expressions, such as:
- frowning or scowling
- glaring
- blankness
- sneering
- pouting.
- Meeting new people and introducing yourself
Your first impression can be the difference between starting a successful business relationship or finishing with a one-off meeting. It is very easy to make a negative first impression on someone, often without knowing you’ve done so. It’s much harder to make a positive impression, so you must put some effort into your introductions.
Making a good first impression
The way you introduce and present yourself provides people with a first impression of you. Most people begin forming an opinion of you within 3 seconds and these judgements can be difficult to modify.
When we introduce ourselves to someone, we're saying we're interested in establishing some sort of ongoing rapport for mutual benefit. There are 3 parts to our introductions:
- the handshake (often, but not always)
- introducing yourself
- moving into conversation.
Handshaking in Australia
You are more likely to be remembered by a person whose hand you’ve shaken. In traditional Australian culture there are 4 main opportunities for handshaking:
- when introduced to someone and when saying goodbye
- when you run into someone you haven't seen in a long time
- when you enter a meeting and are introduced to participants
- when you reach agreement or commit to a deal.
These are the most commonly used features of handshaking in Australia:
- stand
- step or lean forward
- make eye contact
- smile
- shake hands - firm but not hard
- greet the other person and repeat their name.
Introducing yourself
Your introduction should tell people who you are and it should encourage people to be interested in speaking to you. You need to sell yourself and feel confident while doing so because this will put others at ease.
When introducing yourself, apart from your name you should consider including:
- your role or title
- your business, trade, or industry
- a brief description of your business
- a 'memory hook' (quick, ear-catching phrase that people are likely to remember)
- a benefit statement of one particular product or service you offer.
The length of your introduction will depend on the circumstances of the introduction. It shouldn't need to be long, and it's possible to combine certain elements, such as your business and your benefit statement.
Always remember to speak clearly and smile, making eye contact with the person you're speaking to. Using a bit of humour can put people at ease, but remember that certain types of humour offend.
Cultural differences
If an introduction doesn't go according to plan, one reason may be cultural differences. Every culture has its own way of meeting people in business situations for the first time.
Here are 3 examples of how the common business practices of other cultures contrast with those used in Australia:
- In Brazil, an initial handshake is considered very important. There is likely to be a great deal of small talk before the meeting properly starts, and the tone set here can be very important in the relationship development cycle.
- In Russia, meetings are often very formal, structured and serious. Many Russian negotiators believe that a formal meeting is a serious affair and should be treated accordingly. Humour is rarely used in such serious situations.
- In China, formal exchanges of business cards are performed at the beginning of a first meeting. The respect you show the card equates with the respect you show the person.
Written communication for business
Much of the business communication you engage in will involve letters and emails. Although there is less need to think on your feet as with a conversation, writing well for business is no less important if you want your business relationships to last.
Many of the skills required during conversation can also be applied to written communication, such as the need to ask questions and use the right tone. You should be clear in what you're asking or saying to another party, particularly if your written communication requires follow-up actions.
Formal language in written communication
Using the correct level of formality in your written communication can be crucial. Factors to consider include:
Your personal relationship with the recipient
If you have not met the recipient, or your meetings have been in only formal, business settings, it is sensible to continue to remain formal in letters and emails. If you have already struck up a rapport with the recipient you can be more informal, but make sure you keep the communication focused on the business at hand.
The purpose of the communication
If you are, for example, following up a transaction to check that a client is happy with their purchase, you should not need to be as formal as if you were making a complaint or communicating with someone for the first time.
Note that in some situations emails can quickly move back and forth between parties. It is important to gauge the tone of each email carefully. If the other party moves to a more informal style while you remain rigidly formal, you may miss the opportunity to encourage a more informal and cooperative relationship. Equally, being overly informal too soon can be seen as disrespectful in some circumstances.
Rules of writing formally and informally
Some general rules for writing in each different tone include the following:
- Formal writing avoids contractions such as 'you're' and 'won't'.
- Informal writing can include more colloquialism and slang, such as 'loads of' in place of 'many'.
- Formal writing is less likely to use abbreviations, preferring 'television' to 'TV' for example.
- Informal writing is more likely to use short, simple sentences, while more formal communication prefers longer sentences and complex expressions.
It is safe to apply the rules of conversation to writing. Generally, you should probably be more formal in written communication than you would be in a conversation.
Choosing to send a letter or email
Letters are becoming increasingly rare in the business world due to the speed and ease of email communication. You should only send letters if there is a specific need to do so, such as the recipient has indicated they do not like using email, or they do not have the means to communicate electronically. Alternatively the situation may require a letter, but you may be able to attach it to an email for fast receipt.
It is normal to use letter conventions such as 'Dear…' and 'Yours sincerely' in emails, though the latter is increasingly being substituted with 'Kind regards'.
Style and grammar
Make sure you check your writing and correct any spelling or grammar mistakes. This is particularly important when writing emails. In an age of automated spelling and grammar checkers it is more unforgiveable to make such mistakes.
If you are unclear on the spelling of any words there are many online dictionaries you can use. Remember there can be differences between Australian spelling and spelling used in other countries - you should make sure to use Australian spelling in all your written communication.
