Seriousness Is a Key! How Does Excessive Enthusiasm Affect Investors?
If you have your own company and want to attract more business partners to it, be careful when you make any physical movement in front of them; your facial gestures, your impulsive body movements, and your excessive enthusiasm may have unwanted effects, as a group of researchers and scientists at the University of South Florida found that promoting with too much passion or enthusiasm may end up alienating many potential business partners! As the active body movements make investors doubt the true intentions of the entrepreneur and feel that they may fall into a trap.
More Funding May Require Some Seriousness
Usually, entrepreneurs present new business ideas to investors to attract funding, and during that, some of them begin to show increased enthusiasm, thinking that this may encourage investors to be convinced of the idea and finance the project, and this is what the research team began to analyze; is it always good?
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These researchers conducted a survey of 1,811 people who evaluated 182 crowdfunding projects, as well as another randomized trial of 274 people where an actor delivered an identical tone in two ways: once with great enthusiasm and once without enthusiasm. Next, the participants had to reveal which pitch they preferred.
“For entrepreneurs seeking to raise funding, more enthusiasm is not necessarily better,” said lead study author Lin Jiang, in a university statement. This is what the results prove!
Surprising Results
While the right amount of enthusiasm can totally encourage investors to join in, the study authors also note an obvious downside, that enthusiastic expressions can be counterproductive and lead to more scrutiny of the project, and this effect is said to increase potential partners see the entrepreneur as less efficient.
Prof. Jiang concludes, "Our findings suggest that showing enthusiasm may not always be effective for entrepreneurs to raise money, especially for those who lack the necessary venture experience." "There are both positive and negative pathways to showing your enthusiasm through energetic body gestures, varied vocal tones, or animated facial expressions."
So, the next time you want to present your project to an investor, try to balance your enthusiasm with seriousness to win the financing you want!
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