The ability to entertain clients is one of the best skills to have in any corporate setting. If you impress your clients, it means repeat business as well as a better overall relationship, level of communication, and many other perks down the road. The trick to entertaining clients is to find out what they enjoy and make sure they have a good time while in your company. For some, the idea of entertaining can include a great deal of pressure or can be awkward without an adequate amount of preparation. That is why we consulted our experts and have provided suggestions on entertaining your current and prospective clients successfully.
When a restaurant is hosting guests who are entertaining clients, it is important for the restaurant to be as accommodating as possible (not that it shouldn’t ALWAYS be accommodating). Nate Kellison, owner of Round-Abouts Restaurant, emphasizes the importance of providing as comfortable of an atmosphere as possible. He says, “Round-Abouts Restaurant is a quick-service establishment which does not have a wait staff. However, if we know someone is entertaining a client, we will let them know that our wi-fi password is available upon request. We’ll also make every effort to turn down the music to a level that is comfortable for what they are doing. And, even though we don’t wait on tables, we will be sure to check on their table from time to time to see if they need anything. As far as entertaining our own clients go, it isn’t much different. My staff knows to offer my clients something to drink if they are waiting for a meeting with me, as well as check on our table from time to time during our meeting. We do offer wi-fi for all of our guests, whether they are entertaining clients or not. For guests hosting a larger group, usually ten people or more, we will also offer to set up some kind of buffet for their guests. We will accommodate any size group by arranging our seats and tables in a way works the best for the type of meeting or engagement they are facilitating. When entertaining clients even the little things about the atmosphere are crucial.”
Jennifer Davis-Korn of 48 Bowl prefers a more unique approach as she suggests that business has evolved beyond simply “entertaining” clients. She says, “Anyone can take a client out for a good steak or for a round of golf. In fact, in a world where we all have calendars that are too full, many clients would probably rather do these things with their own friends or family, not business acquaintances. What I see happening in the B2B world now is much more about developing genuine relationships with existing and potential clients. This starts with promising to do a great job and then following through with it, and building a reputation that you can leverage to earn more clients. Another thing I see happening in the B2B world is that the micro “entertaining of clients” has become medium to large-sized events where many clients with relationships to the same business come together for an outing like bowling or a special catered dinner or a baseball game. Often these larger client-entertaining events have secondary purposes like fundraising, networking or education and I think that this is a very useful strategy for everyone involved. It’s celebration with a purpose and I think that most professionals can appreciate the multi-tasking. With that said, when you have a very good relationship with an existing client, it is imperative that you spend one-on-one time with that client every now and then. It’s exactly like maintaining a friendship, because that is what a good client is, a friend.” She adds, “Our bowling centers can offer full accommodations for any business wishing to entertain guests. We have food and beverages, as well as the obvious — bowling. We have Wi-Fi, projector screens, and meeting rooms. In fact, if we don’t have something a business wants, we are happy to bring it in. We can provide you with a chic or relaxed setting! However, we do find that B2B events at our centers are most successful when participants feel welcome and are allowed to have a sense of humor about their bowling skills or lack thereof. If you have a bowling event, don’t make everything about high scores. There’s always one person in the group that is league champion and they will out-perform everyone. We have games and settings for our scoring systems that can level the playing field for your guests. If you can provide prizes, we have games like Red Pin bowling and BINGO that have high reward potential. Or, if you want to award team prizes, we can build a tournament for you and provide you with the results immediately after bowling is completed. Also, don’t be afraid to host an event at our centers that does not involve bowling. Our bars are enclosed, and we serve many great craft beers, wines and spirits, and have some of the best burgers in town. Just the setting of a bowling “alley” alone allows guests to relax and be themselves — and when you achieve this at an event, you are able to develop a more genuine relationship with your client.” Hollywood Bowl and Parkway Lanes are both a part of 48 Bowl, and Jennifer Davis-Korn encourages anyone interested in those venues to contact her at (402) 466-1911 or by email at jenniferd@48bowl.com for further discussion and arrangements.
With Husker season upon us, many Lincoln businesses and organizations entertain their clients with tailgate parties and associated events. Jennifer Jones, owner of the Lincoln Raising Cane’s locations, says, “With fall quickly approaching and the many events that keep us busy, it is important to utilize resources in the community to help with our tasks. Why not do this when entertaining as well? At Raising Cane’s we make it easy to get everything you need for your meeting, party, tailgate, or simple family gathering. While planning your event is no easy task with all the options out there, you can rest assure that our Chicken Fingers will be a success! At Raising Cane’s we serve fresh-NEVER FROZEN chicken tenderloins that have been marinated at least 24 hours, each battered & seasoned by hand, then cooked to order. We have a great selection of Tailgate packages for any size party and can tailor the entire order to your needs. Whether you are serving 25, 100, or even more people; our chicken fingers, famous Cane’s Sauce, Texas toast, creamy coleslaw, freshly squeezed lemonade and freshly brewed tea will hit the spot. For larger events needing 1,800 or more chicken fingers, we have a mobile kitchen that can prepare for your party on-site; leaving no fuss for you or your guests!” Jones adds, “When deciding upon your many restaurant options to assist with your event and planning your menu; always consider your guests and their needs, the ease of use of a particular restaurant, and of course the quality of the meal each restaurant can offer. At Raising Cane’s, we always strive to provide the best chicken fingers and the best customer experience; give us a call to help assist in your next event!”
The Lied Center has four completely unique settings available for any special event that you may consider utilizing for entertaining you clients, from trade shows to tailgate parties, inaugurations, fundraising events and more. Seating capacity ranges are vast to accommodate everything from a large gathering to an intimate evening. Spaces available include:
• Lied Commons, 175 lecture or 150 banquet
• Steinhart Room, 120 lecture or 95 banquet
• Carson Theater, 250 lecture or 216 banquet
• Katherine Hendy Parker Lobby, 400 reception or 248 banquet
• Main Stage auditorium, accommodates 2,192 people comfortably
According to Bill Stephan, Executive Director of the Lied Center for Performing Arts, “Few venues in Lincoln share the distinctive culture, prime location and picturesque views that the Lied Center can provide for a special event. The Lied Center is centrally located between UNL and downtown Lincoln and is steps away from the Historic Haymarket. Not only is the Lied Center in an optimal location, it is a theatrical and exciting venue. It is often described by guests as elegant and distinctive, yet friendly. Many patrons feel the view of the UNL campus from both our new Lied Commons space and our Main Hall Lobby are the most picturesque in the city. As a theatrical venue, almost anything is possible! Every event has the option of using colorful, theatrical lighting to highlight rooms and top quality audio systems for entertainment. In addition to holding special events, guests who are looking to entertain their clients can also hold a dinner at the Lied prior to treating their customers to a world class performance. Every year the Lied Center presents over 30 programs featuring the greatest artists in the world. What better way to entertain a client? Businesses who really want to add a special touch can sponsor a show, which often includes a meet and greet with artists that includes photo opportunities. All of these opportunities are surprisingly affordable at the Lied Center for Performing Arts.” He adds, “Our advice to all event planners is to go first class. Find the best venue that is high quality and includes professional staffing. Identify a catering company that always delivers the best quality food with a creative menu. The Lied Center allows visitors to order food from the caterer of their choice, and if unsure, will gladly suggest caterers with whom we work with on a frequent basis. Allowing our guests to choose their own food preferences ensures that they will have a menu that is perfectly suited to their needs, budget, and event atmosphere. Your entertainment choice should match the taste of your client. There are lots of very talented artists in Nebraska. If you are not connected with the talent, partner with an organization or event planner that can provide you with access to quality entertainment.”
Examples of Great Ways to Entertain Your Clients:
• Feed them! Taking clients out for a nice meal is a basic and often expected part of entertaining. This sets the stage for great professional and personal conversations as well as potential business deals. It is important to make sure you accommodate any dietary restrictions your client may have, and this knowledge is especially helpful before making reservations to ensure that they are comfortable and able to enjoy themselves. There are many unique, local restaurants that only Lincoln can offer, which not only provides plenty of options but also gives your client the chance to try something new!
• Take them to a sporting event. We are lucky to live in the great state of Nebraska, where you have an opportunity to do this with a great selection of Husker events throughout the year! Even an afternoon at the golf course is a great way to enjoy some relaxing private time out of the office and a bit of healthy competition.
• Show them around Lincoln. There are some great places right here in Lincoln that many visitors are likely to enjoy, and it is also really disappointing to take a business trip to another city and not get a chance to take in some of the local flavor. Local venues like those in the Haymarket, Downtown Lincoln, the State Capitol Building, the Lied Center for Performing Arts, the UNL Campus and Memorial Stadium, Sheldon Art Gallery, Sunken Gardens, Zoo Bar or Bourbon Theatre, etc. are great ways to get out and about and show off what makes Lincoln a thriving business community in a scenic college town environment.
• Be creative–think outside the box! If you take the time to get to know your clients, you will be able to come up with the best and most creative ways to entertain them. There’s a good chance your client has been entertained in a professional context before, so this is your chance to stand out and show them they can trust your decision-making and planning in other settings. If they’re the adventurous type, you don’t want to bore them and conversely, if they are more introverted you don’t want to take them out of their comfort level.
Tips for Successfully Entertaining Your Clients:
• Choose an environment where you will be able to develop a deeper relationship, as the purpose of entertaining your clients is to not only show them your appreciation and thank you for choosing to conduct their business with you, but also to get to know them better and further your connection. Even with tighter budgets, relationships can still be built, honored, and respected—a minimal investment in some personal time with your client can definitely provide a profitable return for your business as well as a meaningful relationship with the person that you are doing business with.
• Location, location, location! If you take your client into another environment, such as a nice restaurant or function where there is an unconscious association of pleasure to the place, business tension often subsides in favor of building a friendship.
• Dress appropriately for the event or outing, and make sure your client knows what to wear in advance so they are comfortable before they even arrive.
• Always drink less alcohol than your guest if that is a part of the entertainment. Accordingly, ensure that a safe means of transportation is planned for and secured ahead of time if necessary.
• Make sure to be clear if significant others are welcome, and extend an invitation to their significant other only if you plan on bringing your own. A good rule of thumb is to not make entertaining your clients more difficult than it needs to be. If you know they would feel more comfortable or enjoy their time more if they brought their spouse, then it is a good idea to plan an event that welcomes more than just the two of you.
• Always pay for the full cost of the entertainment and anything other fees associated during the time you spend together. If your client insists on paying, drink and eat as light as possible but always try to gently persuade them that you would like to pay as you were the one that invited them out in the first place. Never split the bill if you extended the invitation! Also, if your entertainment involves dining in a restaurant it is a good idea to take care of the bill with the waiter in advance, or away from the table. This eliminates distractions and reserves you some privacy with respect to the cost of the entertainment.
• Enjoy your time together. While you may be related only by your businesses, avoid transacting business during this time. You can talk shop to an extent, but entertaining your clients should predominantly consist of just that—entertainment. While your business is a huge part of your life, it is not the only thing that others are interested in knowing about you and it certainly shouldn’t be the only thing that defines you as a person. Entertaining your clients is meant to get you out of your normal business environment, not simply change the venue. A person that doesn’t have anything else to talk about can seem really boring or monotonous as well (even though your business or profession likely consumes a huge chunk of your life, and it is expected that you are passionate about what you do for a living).
• Get personal, as this serves to strengthen how you do business with your client. Business entertainment often interrupts the pattern of the sales cycle—if you build a relationship outside of proposals, investments, industry specifics and number crunching, your goodwill gestures are likely to replace any sort of buyer’s remorse that could happen after your deal is closed.
• I know I just emphasized not talking about business too much, but there is a catch. To seal the progress you have made in building a more meaningful relationship, especially after a fun or memorable time, in moving forward it is important that you end the time you have spent with an action-oriented statement. A few simple, good examples are: “I’m excited to work with you in the future” or “I can’t wait to see what this relationship will bring, I hope you had as good of a time as I did!” It’s sort of like writing an essay, you have an introduction, the body, and you MUST have a great conclusion to tie everything together. Frame how good of a time you had, where you’re heading into the future, and set up the next steps right then and there.
• Don’t plan anything too lavish, like expensive trips or outrageous meals. While your client will find it appealing to be treated to something nice, everyone spends their money differently and it is important not to assume that spending a great deal of money will translate into a favorable impression of you as a person. This could be seen as a turn-off in two ways: you are trying too hard to impress them or you don’t know how to manage your money effectively. Either way, it is safer not to give your client the opportunity to make either assumption. Everything in moderation!
• Follow proper business etiquette at all times. Even though you may feel more comfortable with your client, they should still be treated in a respectful and considerate way without going over the top and acting like their personal servant or concierge.
According to www.irs.gov, you may even be able to deduct some business-related entertainment expenses you have for entertaining a client or customer. However, you can only deduct entertainment expenses if they are both ordinary and necessary and meet either the directly-related test or the associated test. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. It is important to note that an expense does not have to be required to be considered necessary. Additionally, the amount that you can deduct for entertainment expenses may be limited. Generally, you can deduct only 50% of your unreimbursed entertainment expenses. To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that:
• The main purpose of the combined business and entertainment was the active conduct of business,
• You did engage in business with the person during the entertainment period, and
• You had more than a general expectation of getting income or some other specific business benefit at some future time.
Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. It is not necessary to devote more time to business than to entertainment. However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. Even if your expenses do not meet the directly-related test, they may meet the associated test. To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is:
• Associated with the active conduct of your trade or business, and
• Directly before or after a substantial business discussion.
Associated with trade or business. Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. The purpose may be to get new business or to encourage the continuation of an existing business relationship.
Substantial business discussion. Whether a business discussion is substantial depends on the facts of each case. A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit.
Directly before or after business discussion. If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. Among the facts to consider are place, date, and duration of the business discussion. If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day.
For example, let’s say a group of business associates comes from out of town to your place of business to hold a substantial business discussion. If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment is generally considered to be held directly before or after the discussion. The expense meets the associated test.
Clear business setting. If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. The following situations are examples of entertainment in a clear business setting.
• Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products.
• Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer).
• Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained.
Expenses not considered directly related. Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. The following are examples of situations where there are substantial distractions.
• A meeting or discussion at a nightclub, theater, or sporting event.
• A meeting or discussion during what is essentially a social gathering, such as a cocktail party.
• A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts.
Client entertainment is an important part of building good relationships with your customers. When you get to know your customers, those you do business with regularly, or those you hope to do more business with in the future in a more personal setting, they tend to not only remember you more but they really want to do more business with their “friend”. In the simplest terms, it’s all about offering your best clients, or strategically targeted clients, some form of social activity that shows you appreciate their business. Making a great personal impression, in conjunction with the impression you have already made through your business relationship that has afforded you the opportunity for additional interaction, will work hand-in-hand to create a bond of trust and camaraderie that is priceless. If you show your clients you appreciate them, you can be certain that you will benefit in more ways that just their business.