- July 5, 2022
- Posted by: Paul Foster
- Categories: Business mentality, Grow a Business, Increase Profits in Business
Learn to say NO!
Many business owners have trouble saying no, and it costs them financially.
1) Customer selection criteria – Let’s say you have a current customer who consumes a lot of resources and also owes you money. If they want more credit to get more services, the correct answer is NO. You are already losing money servicing this account, if you don’t say NO you will lose more!
What if it is a potential customer who doesn’t fit your criteria?
Sometimes, the correct answer is NO!
2) The sales call – “Do you want to buy advertising in next month’s magazine?” Consider if you have the time to plan the advertisement and make sure the headline captures the readers. If you are not properly prepared, the correct answer to the salesperson is NO.
A last-minute, poorly planned ad that doesn’t work costs more than not doing the ad.
The MAYBE is worse!
If you really should be saying NO but are avoiding it, you are wasting precious time. If you are trying to be nice to the other party, you are now wasting their time. Because, two tries at MAYBE and then a NO, takes more of their time too.
Do them a big favour and get to NO quickly and efficiently. Of course, if you say MAYBE the first time and then the second time they catch you at a weak moment, then see point 2 above.
Remember the opportunity cost of accepting the unprofitable work!
If you take on a project that you shouldn’t, you will consume valuable time and resources on the project and it won’t be profitable.
There is an opportunity cost to this project too. What about the lost profits from the project you could be working on? You are too busy losing money on the project you should have said NO to!