As a business owner, turning down a potential client can be difficult, especially when you’re just starting out. If you talk to most business owners (myself included!), they’ll tell you about a client or project they took on in the early days that was very much NOT a good fit, but for XYZ reason, they said yes anyway.
Now, I’m not telling you that you should be that intentional from the get-go. In a lot of ways, saying yes to the wrong thing will teach you invaluable lessons, and oftentimes, it is necessary to get started, though that is a topic for a different time.
Let’s talk about some of the reasons you may want to say no to a potential client or project:
- Misalignment of Values: One of the most important reasons to say no to a potential client is when there’s a misalignment of values. If the client’s values don’t align with yours or your company’s, it can lead to a clash in expectations and a lack of trust. In my experience, you both end up unhappy when your values don’t align from the start. It’s better to say no upfront than to try to work together and end up resentful or unhappy.
- Poor Fit: Similar to the alignment of values, it’s important to consider how this potential client or project fits into your company’s goals, vibe, and why statement. They may not be a good fit if they’re looking for services you don’t provide or their budget doesn’t align with your offer. It’s better to say no and give them a referral for a better fit. Then, it’s a win-win!
- Doesn’t Feel Right: It’s important to trust your gut, especially when working closely with people. Sometimes, things feel off or not right when meeting with potential clients or discussing potential projects. Every time I’ve gotten an off feeling and ignored it, I’ve regretted it. You don’t have to have a specific or big reason why you want to say no. If something feels off, don’t ignore it!
- Lack of Capacity or Resources: This is a big one that many people don’t recognize until too late. Before adding more projects or clients to the list be sure to ask the questions below. If you answer “no” then it likely means you shouldn’t commit to anything new yet.
- Do my team or I have the hours it takes to complete this project fully?
- Do I or my team have the capacity (note this is different than hours!) to it takes to complete this project fully?
- Does my company have the financial, physical, or knowledge resources on hand or readily available to complete this project?
- Can I complete this project in a reasonable amount of time or at a reasonable rate of time?
Taking on a project that you’re not equipped to handle can lead to subpar work, missed deadlines, and, ultimately, an unhappy client (and a burned-out team!). So, fully consider your capacity and resources before adding more on.
Once you’ve identified that a client may not be the right fit, it’s important to have a clear conversation with them. While this conversation is never fun to have, it’s important to do well. Here are a few things to think about when you tell them no:
- Be honest and direct: It is far better to be upfront and clear than to give them false hope. And to go with the adage, to be clear is to be kind!
- Show appreciation: Thank them for considering your services and let them know that you value their time and effort. This little thing goes a LONG way. People remember how you treat them, especially under these circumstances. You never know what will happen in the future.
- Offer alternatives: If possible, offer alternatives to them. Whether it’s another colleague who could serve them, ideas on where to look, or connections you may have. Make it a point to help, even if it’s not through you!
And remember, this can be challenging. It may feel like if you say no, then nobody else will come. But I promise it’s essential to the success of your business. By turning down clients that are a bad fit, you can avoid misalignment of values, lack of resources, poor fit, and overcommitment. And more importantly, you can save the time and resources for the RIGHT fit!
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