Why "NO" can save your business and your sanity.

The other day I  got a phone call from my business partner about a potential client. After much discussion about the client’s request, I advised her to say “no” to the girl. Saying “NO” in small business is a bold step but trust me when I say that it is an important entrepreneurial skill.

Top 5 Reasons to Say “NO”

1. Not all business is profitable. Very early in the entrepreneurial process, it is very important to establish marginal cost. Marginal cost is related to creating an additional unit of product or service. For example, in the food business, one has to decide what the difference between cooking 50 portions and cooking 55 portions. If the ingredients come in 50 portions sizes and you will have to buy another pack to make 55 portions, you need to reconsider the client’s request and look at your bottom-line.
2.   In relationships, it is often said that you should trust a person when they show who they are. Same rule applies in business. In doing business, if your potential client is rude to your employees or yourself, or generally being difficult, it might be better to say “No” because it is very likely that you won’t be able to satisfy the person.
3. Don’t destroy your brand for one job. If you work as a designer of any sort, a fashion designer or interior designer or event designer, your work is your calling card. If a client comes to you with a demand that does not match your usual aesthetics, consider saying “No”. Creating work that you cannot defend or that is not up to your usual standard could destroy your credibility and help you lose more clients that you will gain.
4. You don’t usually make fitted skirts but this woman just wants a fitted skirt and is convinced you will be able to do it. Say “No”. Don’t try to take on a job that you do not have expertise in, no matter how flattering the offer financially and ego-wise. Identify your business strengths and work within them.
5. At some point, you have to recognize that all growth may not be good for you. If accepting that one extra job is going to potentially break the camel’s back by increasing your staff’s workload and decreasing morale in the office, consider saying “No”. It is important to remember that morale and physical wellbeing of the human component of your business is as important as the financial rewards of pushing the limits.