The most successful entrepreneurs know when to say “no”

“We said no to Fortune 500 companies,” said Tim Bergler of Percipio Group Consulting during an authority panel session with 50 entrepreneurs. Bergler shared the one piece of recommendation he would give to recent entrepreneurs in Portland, Oregon EO Accelerator program. “Don’t be afraid to say no if you can’t do the job for your client,” he continued. His answer was a signal for me.

Learn the ability of “no”.

When I thought of essentially the most successful entrepreneurs I do know, I spotted that they were missing out on most “opportunities.” As I reflected on my businesses, I noticed that our biggest successes got here once we were really clear about what we weren’t going to do.

The overarching problem is that almost all people say “yes” an excessive amount of. When you begin an organization, you mainly take into consideration what you’ll do – mainly every part that may help the corporate grow. So you say yes to every part and concentrate on getting more sales as much as you possibly can. And while this may occasionally work within the short term if you find yourself smaller, it doesn’t work in the long run and will even make you smaller.

This is since the resources of a growing company are limited and straightforward to waste. Saying “no” is crucial since it means that you can focus limited resources – people, time, money – on the important thing elements that best ensure success.

Develop an inventory of “what you won’t do.”

While it could appear counterintuitive, crucial query to ask is: “What habit what we do?” Gather your team and make a thorough “I won’t do” list. Think about it and commit to the results. See how this exercise focuses and drives your business.

Companies that narrowly focus on delivering only what they can to the customer – a product or service that cannot be easily found elsewhere – are successful. Think about all the companies you like. Do they do everything for everyone, or do they do just one thing exceptionally well?

Let’s take the food business. Standard grocery stores sell an astonishing array of groceries in a highly competitive segment with low profit margins. Compare that to Costco or Trader Joe’s, which are highly profitable and focus on what will sell and what won’t. The warehouse only stocks value-added products that customers cannot find elsewhere. The biggest fast food chains — McDonald’s, Starbucks, Dunkin’, Chick-fil-A and Taco Bell — have strong “Won’t Do” lists.

A recent headline referred to “the most important resources on planet Earth” whose valuation has gone from obscurity to $2 trillion because of the “Can’t Do It” list. This company, Nvidia, creates the technology that permits artificial intelligence. Nothing more.

The effects of strategic negligence

I didn’t create a “what I wouldn’t do” list for my first company, a commodity business that wasn’t particularly successful.

The second time around, my self-storage business was far more focused. We shopped at our biggest competitors – Public Storage, Extra Space Storage and CubeSmart. We then thought deeply about what we could provide that they didn’t should stand out.

We’ve compiled an intensive list detailing what we didn’t like about these firms. Included on this list is our “I Won’t Do” list, which incorporates:

• Change our prices day by day
• Sell ​​or promote additional products/services
• Save hidden moving costs
• Route calls through the decision center
• Act as if the client is bothering us
• Ticket insurance
• Be a national company
• Place the client in an area that shouldn’t be appropriate for them

This list is easy but magical. It does 4 extraordinary things:

1. It determines what you’ll do. Deciding what you don’t love and what you will not do is the trick to determining what you’ll do, which is largely the alternative. Creating a “what I won’t do” list gives you a transparent, inspiring answer to the query of who you will probably be to your client.
2. It becomes the largest time saver. By eliminating what you will not do, you may create space to concentrate on what you’ll do – and improve that offering.
3. Simplifies decision-making. Decisions are either on-brand or off-brand; the list makes it quite obvious.
4. Explains your brand in a way you could not otherwise. When you possibly can accomplish what you do, your enterprise will probably be more successful and profitable. You offer something unique that shouldn’t be a commodity.

Your what-you-won’t-do list is an important business tool. It doesn’t just limit what you do – it could also help shape how you use; Your business practices, pricing structure and the way you’ll treat your customers. A plumbing company may waive electrical work, but in addition rule out practices reminiscent of overcharging, forcing updates or setting half-day appointment windows. Ultimately, the “I won’t do” list improves your focus and helps you cut down your area of interest.

Focus your enterprise on boundaries

Let’s return to Bergler, who ran a management consulting firm with a narrowly defined space where they may add significant value. He was as selective in regards to the quality of individuals on his team as he was in regards to the kind of business they ran. The resulting quality of labor put them in high demand. Ultimately, upcoming job opportunities exceeded capability. He turned down many deals and even referred clients to competitors when he felt his company couldn’t really make it occur.

As a result, customers began to show to Bergler first because they’d many unsuccessful calls with weaker competition. This has made Bergler the supplier of selection for its best customers. When he decided to sell the corporate, many buyers were confident of the corporate’s continued profitability because of its 20 years of consistent performance and sky-high customer satisfaction levels.

Thanks to our own storage company, we quickly achieved great success. Our differentiated brand has made us a customer favorite, earning us higher rankings than larger firms and ultimately making us a wonderful acquisition candidate once we resolve to sell.

When we began a brand new company focused on vehicle storage, considered one of the primary things we did was shop around our competitors and brainstorm ideas for our “I won’t do” list.

When I take into consideration many firms that I even have known over 20 years of operation Organization of Entrepreneurs, I can say that there’s a strong correlation between success and following a robust “I won’t do” list. Do yourself a favor: make an inventory of stuff you won’t do today.