The views expressed by the contributing Entrepreneurs are their own.
Many business owners may find it counterintuitive to believe that saying “no” could lead to business growth. However, it can be one of the most important strategies for achieving success and long-term sustainability. By being selective about the tasks and projects undertaken, companies can free up valuable resources to focus on the most important opportunities and create an environment of success that is sure to drive business growth.
1. Say no to unnecessary expenses
In today’s competitive market, cost reduction is essential for companies to survive or achieve business growth. Saying no can be a powerful tool to help businesses achieve their goals, saving money and having better cash flow. When it comes to low-cost operations, learning how and when to say “no” may be one of the most important lessons a successful business leader must learn.
Cutting costs can drastically reduce overhead and increase profitability, but making this change means investing time in analyzing the costs that are truly necessary for long-term sustainability versus those that are no longer required or are no longer affordable to current climate. For example, having the courage to say “no” to your suppliers can lead to improved cash flow, reduced debt and financial freedom over time. And as business owners, you’re going to have to learn how to do it sooner or later, so you better get started right away.
Related: How to set boundaries as an entrepreneur
2. Say no to job candidates who aren’t a good fit for your business — even when there’s a talent shortage
Bad personnel decisions have a significant impact on the success of any business. Low-quality employees can cause decreased productivity, and when it comes to running a business, time is money. Therefore, it is important to ensure that you hire the right people who are able to deliver quality results in an efficient manner. By saying no to poor staffing decisions, you can ensure your team is equipped with people who understand their roles and have the necessary skill sets to get the job done right. Well-staffed teams help improve performance and quality of work, while reducing costs associated with employee training or mistakes due to inexperience. Additionally, having staff members with good morale helps create a positive work environment that further boosts productivity levels and contributes positively to the growth of your business.
Many entrepreneurs and company owners tend not to pay due attention to the importance of employees in their company. However, many studies in recent years show that employees who are satisfied and committed to work are employees who, in practice, bring higher productivity and higher income to their company and actively participate in the development of the company. There is no magic formula for finding such employees, but one thing is certain: We must pay great attention to recruiting staff in our company.
Our employees must be suitable and have the right skill set for the job for which they were hired. Is it a win-win situation? employees are satisfied at work, feel valued and appreciated, have a positive impact and are more involved in processes. When this happens, you can expect an increase in productivity and income. Several years ago, a study that looked at companies with low versus high employee engagement showed that high employee engagement in companies resulted in a 10% increase in positive customer reviews, a 22% increase in profitability, and a 21% increase in work productivity. With such data it is not worth arguing. Learn to say no to mediocre staff, bring in employees with the right skills and give them the right conditions to grow. Their success = your success.
3. Say no to (some) tempting business deals
Knowing when to say “no” is a key skill for any business owner. Turning down the wrong opportunities or deals can cause problems, but so can saying yes to the wrong one. Learning to keep the sharks away, literally and figuratively, is always a good idea. Sharks in the water are a danger, but don’t be fooled by sharks on land who want to buy your company or offer you a bad deal. pay attention to those too.
Remember, sometimes the best deal is to remain independent and make your own decisions about the direction of the business rather than relying on advice from people you don’t know or can’t trust 100%. Your fear is natural — we all fear change in some way — but it doesn’t make it a good enough reason to say yes to the first competitor or investor who tries to take you out of the game. Saying “no” and turning down such a serious offer should be carefully considered, but under the right circumstances, turning down can lead to greater business growth. Now that you know people are interested in your activity, it can be a huge motivator for you and your entire staff down the road. Additionally, refusing can signal to potential buyers and other sharks that you value your company and operation at a higher value.
Related: Why setting boundaries is the secret to staying energized and focused on what matters
Take, for example, the navigation app Waze. the company received low bids early on and thought it was worth more. Later came very good offers. According to reports in various news sites, Apple offered around $500 million to buy Waze. What was Waze’s response? You guessed it — the answer was “no.” Facebook then made a very generous $1 billion buyout offer. The Waze company has bravely said “no” once again. After that, a few offers were made by Google and the last one was reportedly in the range of $1.1-1.3 billion. This time Waze took the offer with both hands and achieved a very impressive high-tech exit. I can’t guarantee that the Waze example will work in most cases, but it’s a real example of why you need to know when to say “no” even when the temptation is too much.
Saying no helps open up growth opportunities, and learning when to say no is a powerful tool that can help you unlock growth potential within the organization. A business owner or team leader’s ability to recognize their own ability is essential in order to drop certain tasks and projects that may take away from their main business goals, creating a more productive environment and happier employees, etc. A smart entrepreneur will know when it’s time to balance between saying yes and going with the flow until he takes risks and seizes opportunities that can be handled and turned into a business growth opportunity.