The Smart Move: Why ‘No’ is Key to Your Business Success

In this episode of C-Suite Sidekick, host Summer Poletti dives into the challenging, yet vital skill of learning when to say "no" as a small business owner. With personal anecdotes and real-world examples, she explains why saying no to the wrong client or project can actually protect your business in the long run. From avoiding rushed timelines and scope creep to setting pricing boundaries and protecting your brand’s reputation, Summer offers actionable insights on how to balance growth with integrity. If you’ve ever struggled with turning down business, this episode is for you! 

And near the end, Summer share her secret for saying "no" and still feeling nice.

• Episode recorded and edited using Descript
• Repurposed content, such as this description created using CastMagic
• Visit Rise of Us for more information about Summer's services
• Connect with Summer on LinkedIn

Transcript

0:00

Hello, and welcome back to the C-suite sidekick. I'm your host summer poli. And today we're diving into a topic that's especially tough for small business owners. Knowing when to turn down a prospect or client. It might seem counterintuitive to say no. Especially when revenue is tight or you're up against larger competitors in financial services and SAS. And just about any other industry, there's always an 800 pound gorilla in the room. A company with a huge marketing and sales budget. With the ability to go after seemingly any and all business. But the reality is for you saying no. Can sometimes be your smartest move. This is coming up right now because I just personally turned down a prospective client. If you're new here, you might not know that I am an early stage startup, which means I need revenue. It was not an easy decision to turn someone down. The work they wanted was something I could do after all, but they wanted it done in a way that didn't align how I usually operate. And they weren't open to suggestions, kind of wanting to call the shots on how I do my work. So I had serious doubts about delivering the kind of value that I expect of myself. In the moment. Let me tell you it fricking sucks, but I knew that longterm, my brand's reputation was more important than one client or one project. Think about this. Have you ever felt pressured to do something that was outside of your procedures? Or maybe bend a rule or maybe even do something that doesn't follow your industry standards because you thought if you said no to the client or denied their request, That they would leave your service or perhaps. Have you ever been held hostage by a client who threatens to leave your service? If you won't meet their demands? We've all been there. It's incredibly competitive out there for small businesses. And sometimes you feel like you need to do what your clients want. No matter what. In order to keep them. I get it. So let's talk about the longterm risks of misaligned expectations. Why is saying no, sometimes the right move. In financial services, companies are naturally more risk averse. And in SAS, we tend to see more willingness to experiment. But regardless of whether you're conservative or willing to take risks, Not all revenue is good revenue. When you take on clients or projects that aren't a good fit, you're opening the door to longer term issues. I learned this the hard way in my previous role as a newly promoted department head, my employer had been operating about six years and they still held that beggars can't be choosers mindset. And as a result had taken on a lot of misaligned clients and projects. I inherited. A total nightmare. And these clients didn't follow procedures, which is especially risky in a compliance oriented industry, like financial services. And because the company sent a precedent by bending over backwards for them, they pushed their boundaries. They ignored policies. Workers me we're constantly stressed feeling like we were held hostage or basically had to live at the office. To fulfill the whims of our difficult clients. It was exhausting and emotionally draining. And when I embarked on retraining clients and enforcing those policies, I got a ton of pushback. That's a different story though. Another pressure we get in financial service and SAS is to deliver on too tight of deadlines. Have you ever had a client pressure you to get them implemented faster than normal? Or they expected some kind of miracle that the banking system just simply can't deliver. While it's tempting to say yes to your clients. You know, you're capable of delivering right. Or you want to do what you can to make them happy? Even a statement, like, I'll see what I can do can be perceived as an agreement in the mind of your client. You have to be careful. It is always best to under promise and over deliver. Rushing a project of course increases the likelihood of errors. And the client will still hold you accountable for any issues. Instead of a client being happy, but you went the extra mile and squeezed something in, or at least tried to help them. You could end up with a cranky client who blames you and perhaps a cranky employee to. No, what is possible and stand firm. Have you ever had a client who asks you to do something? More than technically what they're paying for, or maybe have you had a client? Expect more out of our project or add things on later. There's also misalignment on project scope, accepting clients without a clearly defined scope is another common pitfall. vague deliverables lead. Scope creep where clients keep adding requests and usually without willingness to also add fees. Without firm boundaries. This creates delays overruns. And ultimately dissatisfaction on both sides. Unfortunately. This is all leading to protecting your brand's reputation. Your brand's reputation is something that can't be easily fixed once it's tarnished. Taking on the wrong clients can damage that reputation in ways that you might not anticipate. Imagine delivering subpar results because the project wasn't a fit or worse, getting bad reviews or word of mouth that spreads among your target market. It's important to remember that buyers do a lot of independent research before making decisions. Which will include reading online reviews or discussion boards and talking to their network. And studies show that they give more consideration to negative reviews than positive ones. It can take up to 40 positive experiences or reviews to make up for just one negative review. Reputational risk is something that as an independent business, not a household name, you simply can't afford. Remember the client. Who's asked you to do something that might not follow industry standards. Have you ever thought about the fact that they might not know that they're asking for something that they shouldn't be asking for? You are the expert in what you do and the best thing to do for the client. Is to educate them on why you do things the way that you do. Have you ever accepted a client or a project where you knew that you didn't want a hundred percent have the resources or the expertise to deliver what they want right now. And you're kind of learning as you go, maybe trying to stay one lesson ahead of the client. I've done that too. Yeah, we'll take it on. We'll figure it out. Right. It's not just about reputational risk. Misaligned clients, drained resources, time, energy, and attention. That could be better spent on the right clients who value your service and are more likely to succeed and refer you to their friends. When you take on clients or projects that aren't a fit. Your team ends up. Having to learn as they go or bend over backward often to a seemingly thankless client who might not even realize that you're doing them a favor. This can affect morale and lead to burnout, which is especially dangerous in smaller teams where every resource counts. Has a prospect ever asked you for a discount that goes below. The max discount you're willing to offer. And did you accept the business? How did you feel afterwards? There can also be a misalignment on pricing expectations. Clients who negotiate too aggressively on price. Can de-value your service in the long run? They often expect far more than what's fair and reasonable. And once you lower the bar, you set a dangerous precedent. It's hard to recover from this. And it often leads to a focus on cost and not value. Remember the client who chooses you on price alone, isn't loyal to you. And unfortunately they don't value you. They value their own wallet and they will leave you on price. As soon as they get offered a cheaper one. Let's not be the Sheehan versus Teemu of the B2B world. Plus, if things go wrong with a difficult client. You end up spending more on customer support and problem solving and damage control. And that client who made you cut your pricing to the bone. Now there are a lost leader. I think we've all had that one client where you know that if they so much as call your office once during the month, They've actually lost your money. The effort you put into servicing misaligned clients could be far better spent on clients who fit your ideal client profile, where your team's work will be appreciated. And they'll feel a sense of achievement. This is all boiling down to focusing on what you do best saying no gives you the space and clarity to focus on your strengths. Staying true to your differentiator is a key to building a sustainable business. You can't be everything to everyone. Have you ever dreamed of being the thought leader in your space or the person who whenever a company. Needs, what you provide. The first name that comes up. And their mind is yours. turning away business that doesn't align with that is essential for staying focused and driving real growth. And then also staying in the minds of your referral partners as the go-to person for your area of expertise. We don't want to confuse those folks by trying to do too many things. Right. If you're in SAS, have you ever had a client. who kind of wanted you to do everything for them? You know, that service part of the software? From onboarding to set up even daily tasks, that probably should be their responsibility utilizing your system. And this is especially important when they're in implementation and they're learning, they might want you to do it for them. While they're learning. Uh, they haven't remembered it yet. It's tempting to say yes to keep them happy. But doing so only creates long-term dependency and pulls your focus away from your key strengths. Instead focus on empowering your clients to be independent and successful with your tools. If you're in financial services, have you ever had a client ask you to clean up an error made by their previous processor, perhaps as a conditioned to winning their business?. And you might be tempted to do this as well. After all, it's hard to win new accounts, fixing a problem. Someone else created can muddy the water on responsibility though. So if there's a penalty, you could be left holding the bag. And I find that if you clean up someone else's mess, you inherit the problem. The client loses sight of the fact that you stepped in as the savior, and instead start blaming you that the problem exists in the first place. It is best to send that problem back to whomever committed the error, no matter how much the client protests. Keep your fingers off that train wreck. When your team is constantly working on projects that fit their strengths, they feel more engaged and motivated. And guess what? This leads to better client outcomes, better word of mouth and more repeat business and referrals. Let's talk about the strategic advantage of saying no. When you say no to clients or projects that aren't aligned with your core strengths, you're not only protecting your resources. You're signaling to the market that you value quality over quantity. This builds trust, credibility, and reinforces your position as a strategic advisor. This is at the core of the work that I do with my clients. Have you ever been asked? What makes you different from your primary competitor? This is all about that. Finding and embodying a recognizable differentiator being the king or queen of your niche, the expert. In your core competency. So that there can be no doubt. What differentiates you from your primary competitor?. Plus turning down, miss aligned clients frees up resources to focus on nurturing existing clients or going after the prospects who are tightly aligned with your ICP. Remember. Long-term growth. Isn't just about closing deals. It's about closing the right deals. In case you're still thinking well, yeah, but you don't know my industry. You don't know my clients. They expect me. To deliver what they ask for. If you're still feeling the pressure to say yes to every opportunity.. Here's another story. I worked for Disneyland and college and the drum they beat is that the customer is always right. I mean, when we talk about drinking, Kool-Aid nobody does this better than Disney. So I understand where your heart is. I first heard the concept of saying no to clients from a senior VP at Paychex, one of the two to three people that reported to the CEO. So his opinion carried weight. His reasons aligned with some of what we've discussed today. And my mind was changed forever. I have found, however, that. Managers clients and partners. Don't always agree with me. But trust me, this works. Your takeaway is this. The next time a client or prospect asks you for something that's a stretch. Tell them here's what I can do for you. And then give them two or three options that fall within your core competencies. That way, they feel like they got what they want because they got to choose and drive the boat. And then you still feel nice, even though you technically declined the original request. Share this with someone who's nice to a fault. And subscribed. So you're the first to hear future episodes drop a review. If you're feeling nice today, it helps my reach. If you want to discuss how to evaluate opportunities or need help focusing on the right kind of growth, you can find me on LinkedIn I'm summer. Polenti rhymes with spaghetti, or you can visit my website, the rise of us.com. Thanks for tuning in let's scale responsibly together. And I will see you next week.