It's tough being a small business owner. You're always on the lookout for new customers, and you feel like you should be saying 'yes' to every opportunity that comes your way. However, as your business grows and becomes more established, you will find that you have to start saying no to certain opportunities - even if they seem like a good fit at first glance. This is because not all customers are created equal, and some can end up costing you more money than they're worth. In this blog post, we'll discuss why it's important to say no to certain customers, and how doing so can benefit your business in the long run.
Know what is a 'good fit'
As business owners, we know what it's like to experience peaks and troughs in demand for our services, meaning that we're always trying to prepare for the worst. However, if you have an established business with a relatively steady income and expenditure, you have earned the right to say no to customers that you know, in your gut, aren't necessarily the best fit for you and your business.
So, what are some of the key signs that a customer might not be worth your time and energy? Here are a few red flags to watch out for:
- The customer is always trying to negotiate on price, even after you've given them your best offer.
- The customer is constantly changing their mind, or they're never quite sure what they want. This can also be a sign of scope creep, as customers continue to add 'just one more thing' to a project so that it stretches into a never-ending task...
- The customer seems to be more interested in getting a bargain than they are in using your product or service. You have worked hard to develop a positive reputation for producing great quality work - don't let that be negatively impacted just because someone wants something cheap and quick.
Are you seeing 'red flags'?
If you see any of the above red flags, it's probably best to politely decline the opportunity and move on. Remember, it's better to have a smaller number of high-value customers than a large number of low-value customers. By saying no to certain customers, you're freeing up time and resources that you can use to better serve your best customers.
So, the next time you're tempted to say yes to a customer who raises one or more of the red flags above, just remember that it's okay to say no. Your business will thank you for it in the long run!