Why Business Owners Should Say
- By Taylor Vogt
- Published 01/10/2012
- Legal
- Unrated
Small business owners often make the mistake of believing that they have to take every project that is sent their way. When a business is first starting up, there is the strong desire to take every job offered to try and drive revenue. While that can be dismissed as a natural reaction in a desperate situation, it is not necessarily good business. There are several reasons why business owners need to learn how to say no in various situations.
One of the more prominent reasons to say no is because it helps your company to establish an identity. It is impossible for a small business to be everything to everyone. To gain a reputation in your industry, you need to focus on the things that your company is good at. The common misconception is that if you take every job thrown at you, then you will develop the reputation for being available. The truth is that if you take every job thrown in your direction, then prospective clients have no idea what your company does. You need to learn to focus on your core strengths and say no to the jobs that are not part your company?s business plan.
Profitability is essential in any business. Business owners base much of their decision making on whether or not a profit can be made. If you take on a series of jobs that you may not be qualified for just to have the work, then you will lose money. A carpenter cannot make a profit doing metal work because he is not an expert in the field. When you start taking any kind of job, your profit margin
s will shrink and you will start to hurt your company's bottom line.
Another reason for learning to say no is that it prevents you from over-extending your company's resources. When a small business first starts out, the temptation is to try and take every job available to generate revenue. But if you start to over-extend your resources by saying yes to everything, then you will eventually start disappointing clients. Your quality of work will suffer because you are stretched too thin. The result is that taking on too much work will cost you referrals and slow the growth of your business.
When you are thinking about saying yes to every project sent your way, think about trying to grow your company and hire employees. Which kinds of projects will you commit resources to? If you are taking a wide variety of projects, how can you hire new personnel to address those needs? If you are taking little samples of a wide variety of jobs, then you are not allowing yourself the focus you need to grow your business successfully.
Entrepreneurs sometimes allow ego to get in the way of good business decisions. Saying yes to everything is the quickest way to put your company out of business. The only projects that you say yes to are the ones that fit into your company's business plan. Follow the blueprint for success that you created when you started the company and you will be able to build a strong business. If you learn to say no to the projects that do not fit into your business plans, then you are giving your company an excellent chance to gain a profitable reputation within your industry.
One of the more prominent reasons to say no is because it helps your company to establish an identity. It is impossible for a small business to be everything to everyone. To gain a reputation in your industry, you need to focus on the things that your company is good at. The common misconception is that if you take every job thrown at you, then you will develop the reputation for being available. The truth is that if you take every job thrown in your direction, then prospective clients have no idea what your company does. You need to learn to focus on your core strengths and say no to the jobs that are not part your company?s business plan.
Profitability is essential in any business. Business owners base much of their decision making on whether or not a profit can be made. If you take on a series of jobs that you may not be qualified for just to have the work, then you will lose money. A carpenter cannot make a profit doing metal work because he is not an expert in the field. When you start taking any kind of job, your profit margin
Another reason for learning to say no is that it prevents you from over-extending your company's resources. When a small business first starts out, the temptation is to try and take every job available to generate revenue. But if you start to over-extend your resources by saying yes to everything, then you will eventually start disappointing clients. Your quality of work will suffer because you are stretched too thin. The result is that taking on too much work will cost you referrals and slow the growth of your business.
When you are thinking about saying yes to every project sent your way, think about trying to grow your company and hire employees. Which kinds of projects will you commit resources to? If you are taking a wide variety of projects, how can you hire new personnel to address those needs? If you are taking little samples of a wide variety of jobs, then you are not allowing yourself the focus you need to grow your business successfully.
Entrepreneurs sometimes allow ego to get in the way of good business decisions. Saying yes to everything is the quickest way to put your company out of business. The only projects that you say yes to are the ones that fit into your company's business plan. Follow the blueprint for success that you created when you started the company and you will be able to build a strong business. If you learn to say no to the projects that do not fit into your business plans, then you are giving your company an excellent chance to gain a profitable reputation within your industry.
Taylor Vogt
Taylor Vogt is CEO at Content Crooner, a high quality content distribution service that gets you more targeted web traffic. Learn the benefits of honest, useful content based on principled love in our free report.
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