There are many instances where declining business can be beneficial to the growth of a small business. In her latest video, Carol Roth details three circumstances where saying no is saying yes – to a healthy bottom line.
Hey it’s Carol Roth, and I want to talk to you today about the best time to turn away business. Now, as an entrepreneur you are probably always chasing that almighty dollar, but unfortunately, chasing cash is not a business strategy. So if you want to grow your business, here are the times that you should say no and actually turn away business.
The first time is when somebody won't pay you what your worth. You obviously have a rate that you’ve set based on what you think your value is, what the market thinks your value is, your time, your experience, your skill set, your network. If somebody is not willing to pay you, especially as an established business, anywhere near what your rate is then feel free to walk away. It gives you that opportunity and that time to go find clients who will pay you what your worth.
The next time you should turn down business is when somebody is asking you to do something that isn’t core to your mission and strategy. You should have a goal and a benchmark for everything that you do. And certainly sometimes clients offer cash to do other things, but if that’s not aligned with what your business is doing or where you want it to go, then again say no in order for you to have that opportunity to grow your business.
And then the last time you should say no is when something turns out to be a time suck, or at least when you assume it will be a time suck, even if somebody is willing to pay your rate. If you know that it is going to take you ten times as long as it would take you with another client to do the same thing, well, that is probably on a per hour basis and is not the right dollar amount for your time. Something is going to be so time consuming and so painful for you as a business owner, then again, just say no.
Now, I know it’s hard as a business owner to turn down business, but if you want to make room for those new opportunities, you have to learn to just say no. So, join me in turning down the things that aren’t relevant and start pursuing the things that are.
About Carol Roth
Carol Roth is the creator of the Future File ® legacy planning system, “recovering” investment banker, billion-dollar dealmaker, investor, entrepreneur, national media personality and author of the New York Times bestselling book, The Entrepreneur Equation. She is a judge on the Mark Burnett-produced technology competition show, America’s Greatest Makers and TV host and contributor, including host of Microsoft’s Office Small Business Academy. She is also an advisor to companies ranging from startups to major multi-national corporations and has an action figure made in her own likeness.
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