Say No Like a Pro — When You Must Turn Down New Business
Saying no to a prospective client is not the Kiss of Death. Rather, what will certainly lead to some issues in business is saying yes when you can’t deliver — or your gut has told you that the prospective client and/or their project is not the right fit.
During difficult economic times such as these, we are inclined to take on everyone who comes through the door. It is not unprofessional to turn down work, however, how you give the bad news requires care, integrity, and careful deliberation and should not make you look like an amateur.
Given the power of word-of-mouth and the need to keep your business active in the recommendation chain, communication strategies — even when saying no — must be forward-looking and as positive as possible.
The continuing growth and force of social media in our business, as well as personal lives, has shown us the necessity for conversations that are sincere, transparent, respectful and honest.
Here are some situations that may require a “no,” as well as how you can deliver it
1) If a prospect needs some skills or experience that you don’t have, don’t fake it. Instead, acknowledge your scope of practice and recommend a colleague:
“No, I’m sorry, I’m not a ———- , but I’ve worked with so-and-so, who is. In fact, he/she has done this kind of work for me on time and within our budget.
Of course, this means that part of your business plan should be to build a referral system where you can provide leads to each other.
2) If the situation is a timing issue, this “no” can turn into a “yes, but not at this time”:
“I would very much enjoy working with you, but I’m on deadline with two other projects at this time and would like to be able to focus my full attention on yours. If we could schedule it in three weeks, I would be happy to support you.”
3) What happens, though, if your initial meeting with the prospect gives you a gut feeling (or you’ve heard negative reports from associates) that a working relationship would present more stress than the compensation was worth? Here, again, remember “word-of-mouth” and be tactful. Surely, you know of someone whose personality could more comfortably accommodate this client:
“Your project seems like a great challenge, and I know just the person who relishes those types of projects.”
See how important it is to build a team of referrals? (BTW, don’t think about using Response #2 for two reasons — (a) it isn’t sincere, ie, you wouldn’t “enjoy working with you” and (b) what if the person was willing to wait?
Oh, yes, be certain to keep your personal judgments out of the conversation.
4) Perhaps it is purely the project that is not a good fit for your company’s image, vision, or mission:
“After chatting with you, I feel certain that at some time in the future, my organization could provide the services that your business can use, but this particular project is one that would conflict with our firm’s mission. However, A&B Company regularly handles these types of activities.”
5) Verbal communication can be an issue sometimes. If you speak with a prospective client and he or she is from a foreign country and it is hard to understand him or her, it will be very difficult to have a long-term working relationship with that person.
“After speaking with you, we realize that we can’t help you.”
6) When a prospective client cannot explain clearly what their business is about and are incapable of articulating their needs, there is nothing that you can do to help them.
“At this point we can’t help you, however we can refer you to an excellent business advisor. After you have consulted with the business advisor, we would be happy to revisit your requirements.”
7) When a prospective client indicates that they do not have a sufficient budget for the project and they request an unreasonable discount or payment plan that does not allow you to make a profit, you need to send them to someone more affordable.
“Unfortunately, it seems as though you can’t afford us. I would be very happy to refer you to one of our business associates who can work within your budget.”
Identifying a potential client starts with an interview to make certain that the relationship is right for both parties. As a business owner, your own needs must set the priorities, and even when you are hungry for business, you should turn down any customer who will require exhausting hours, extraordinary hassles, or undue stress. But even protecting yourself can preserve your business and possible future relationships with any particular client; simply make a concerted effort to network with colleagues in similar and associated businesses and build a referral team in which everyone comes out a winner.
Conclusion
Although as a business owner, you don’t want to turn anyone away, sometimes it makes more sense when it comes to the welfare of your business to decline a business relationship at an early stage with a prospect if the relationship between the two of you is not mutually beneficial.
We are pleased to provide you with the insightful comments contained herein. For a complimentary assessment of your online presence, let’s have coffee.
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Via LinkedIn Groups
Group: eMarketing Association Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Can't agree more. In 2 years of our business existence we encountered 3 such situations. In one we said "Yes" when we knew there will be problems and there were lot of problem. We not only lost money but also lost one great friend (he is no more a friend). In other two we said "No" and we are happy we said so.
I think no matter how small you are you should always assess risks. You might grow slow but be very careful.
Posted by Satish Sharma
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Group: Digital Marketing
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Siimon says he agrees with you – http://www.siimonreynolds.com/siimon's-blog.aspx
Posted by Adam Hodge
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Group: Freelance Editing Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
All good advice – though the answers generally frame themselves around proposing someone else for the job. That's good practice when you know the right contact… and when the job is one you're fairly sure will be welcome there. For the rest, a simple "I'm sorry, I couldn't do justice to that. I wish you well with it" is often the smoothest way to go, leaving few handles for continuing argument.
But the main points – saying no when the job isn't right, and NOT claiming to be too busy unless you'd really like to do it if the schedule could be arranged – are pure gold!
Posted by Hilary Powers
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Group: The Content Wrangler Community
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Useful article, thanks. I'm just starting out as a contractor and don't have this problem (yet) … I just wonder about the last example. "unfortunately it seems like you can't afford us" seems stuffy: How about "I think there may be a mis-match between your budget and our fees…" plus your second sentence.
Posted by Mellissa Ruryk
Via LinkedIn Groups
Group: "Write It Down"-A Website for Writers
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Love the article. True professionals have learned when saying "no" serves both the client and the professional. I've referred many prospective clients to other writers and coaches previously networked with. Sometimes the better fit is a result of key specialized areas of expertise; others times it may be due to time constraints, price issues, or even a better feel for the client's location or goal (i.e., working overseas or dealing with a culture in which I lack knowledge of key hiring protocols). Everything balances out in the end. No one can serve everyone.
Posted by Bev Drake
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Group: eMarketing Association Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
always trust your gut..my famous last line.."I respectfully decline"…lol
Posted by Harvey Cooper
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Group: On Startups – The Community For Entrepreneurs
Discussion: Say No Like a Pro — When You Must Turn Down New Business
I am often struggling with the right words to say. This article is really helpful in finding tactful ways of say what you want to say.
Posted by Lauren Casgren-Tindall
Via LinkedIn Groups
Group: eMarketing Association Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
The key is to always make sure that you are dealing with a reasonable entity (be it a prospective client or a prospective partner) who understands that both sides need to benefit in order to establish a strong relationship. On the few instances where I've said no, I found myself asking "why would anyone want to take this on under these terms?" If a question like this pops into your head, it's probably a good idea to take a pass.
Posted by Adam Van Wye
Via LinkedIn Groups
Group: On Startups – The Community For Entrepreneurs
Discussion: Say No Like a Pro — When You Must Turn Down New Business
The timing of this article is great – I am about 30 minutes away (as I type this) from turning down a prospective client!
Posted by Jesse Landry
Hilary, I like your phrasing when you don't have someone to suggest. My recent BNI experience has really introduced me to the concepts of referral marketing and power teams — both of which can come in handy if you want to be helpful to someone without jeopardizing your own business growth.
In discussing this situation with some of my own power team members, I did hear many of them say that if they really didn't want to work with someone, they would if the "Price was Right."
Via LinkedIn Groups
Group: Freelance Editing Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
I turned one down from a client yesterday — the projects are flat fee, edit & photos, with a separate rate for each. When I have both halves of a project, the overall rate is fine. Just editing, though, and it's $8 to $12 per hour. I just simply had to say that I can pick up web projects that pay $14 to $25 per hour, so no, it'll just have to be whole projects rather than edit-only ones. He's fine with that; he knows how many hours I put in on the things to get them clean.
I've been working on his stuff for four years; when it was a matter of just filling hours with anything, when I first went freelance, I took anything I could get, because $0 per hour was not where I wanted to be. But now that I can fill a lot more hours with $25 per hour, the low-paying projects just don't make sense to take. They're usually a lot of stress as well, as the writers aren't pros.
But for a client you don't know well, I can see where some of these responses would be very handy.
Posted by Cathy Bernardy Jones
Via LinkedIn Groups
Group: A Solo Business – Solopreneurs And Business Owners
Discussion: Say No Like a Pro — When You Must Turn Down New Business
nice article and good suggestions for how to say "no" nicely and build bridges to others. thanks, Elaine Hansen, Hansen Resource Development, Inc.
Posted by Elaine Hansen
I wrote a parallel post on when it is time to fire a client. It is called In Bad Economic Times, Should You Fire Clients? http://bit.ly/i2Lgbq
I was curious how you were able to list the comments from LinkedIn Groups? Would you please share?
Thanks,
Rob
The old fashion way of cut & paste. 🙂
Via LinkedIn Groups
Group: Small Business Online Community
Discussion: Say No Like a Pro — When You Must Turn Down New Business
It is refreshing to read such a straightforward and common-sense article.
No-one enjoys turning down work. However, as you so rightly say, accepting the wrong type of work (or the right type of work at the wrong time,) will be detrimental not only to the client, but also to your reputation as a business.
One thing I would add to your advice though relates to those to whom you refer work on.
It seems a statement of the obvious not to pass potentially difficult clients onto your network – unless you want to lose that network quickly. However, there are often alternatives which you can suggest from outside of your network – for example, web-based services.
In contrast, to the above, if you have a potentially good client that you are not able to deal with for a valid reason, it is clearly imperative that you take time to refer them to the best person for the job – even if that is not the person best placed to return the favour. The client will appreciate your integrity, and what goes around comes around.
Many thanks.
Posted by Margaret Burrell
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Group: NJ Association of Women Business Owners (NJAWBO)
Discussion: Say No Like a Pro — When You Must Turn Down New Business
It is so true how long it takes a business owner to accept the fact that some propsects are not the right client for you. I know it took me awhile when I first started my business. But you learn fast if you have "that client." Although it can be tough to do, I can now make that choice appropriately and advise all new buisness owners to develop this prospective quickly for their own survivial.
Posted by Louise DiSclafani
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Group: Tweeple
Discussion: Say No Like a Pro — When You Must Turn Down New Business
I agree, and many times saying a definitive no will actually make the prospective client respect you more, and enable you to come to much better terms if in a negotiation for services.
Posted by Dan Biro
Greetings,
This 'general' topic is one I address in presentations I give at a local business incubator, to new entrepreneurs. I emphasize that, as important as it is to know who your customer is, it is even more important to know who your customer is not! There is now 'everyone' in your target market.
Cheers,
JT…
Via LinkedIn Groups
Group: NJ Association of Women Business Owners (NJAWBO)
Discussion: Say No Like a Pro — When You Must Turn Down New Business
You are probably doing the right thing for the new client as well. You may not do as good a job as you would like and you may put it off. I think that many of us have been on the receiving end, where someone commits to doing something and somehow doesn't get it done; doesn't even return phone calls. I personally would prefer that the person let me know ahead of time that they cannot do the job for me, whatever the reason.
Posted by Susan Krantz
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Group: AOL Small Business
Discussion: Say No Like a Pro — When You Must Turn Down New Business
We have to turn down many of prospective clients. Some prospective clients are truly undesirable. It's better to tell them that you will not take their assignment instead of accepting to do services for them. Our solution to deal with an unwanted client is simple: "sorry we are booked up" or "sorry we have a backlog".
Posted by Jess Lala
Via Facebook.
Women's Business Social commented on your link.
Women's Business Social wrote: "I couldn't agree with you more. Just this week, Jason and I were in discussion with a company who was asking for something that didn't fit our services. Instead of trying to be something we're not, we found people in our network, in that part of the country to connect to this client. Everyone wins! We all get to look good, save face and get what we want! Jodi"
Via LinkedIn Groups
Group: ForbesWoman
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Thank you for this post!
I agree – it is difficult to say no especially now but I have created a process to make my no easier based on what is already in motion. I've learned to use my time wisely and to choose projects carefully. It is easy to create buisness sprawl but as Stephen Covey puts it, “The main thing is to keep the main thing the main thing.”
So, when you are asked to lead, start, or participate in something–or any other ask of your time–give yourself permission to investigate the query, review your findings, and then decide. Now, before I agree to spend time on any project or event, I take time to:
* Get a handle on how much work is ahead of me and clearly understand what is expected of me. What are the expectations?
* What are my other commitments that could interfere?
* Ask good questions and get serious about getting answers that will alert me to how the project or event fits with my business goals.
* I give myself permission to say yes or no based on this kind of investigation.
This list is a starting point. You can add to it, based on other commitments and goals.
Here are several other questions to consider in discerning what is and what is not a good use of your business time and I even use this in my personal choices:
* Is funding for this initiative already approved? For what items? What is not funded?
* What does taking on this project mean to my everyday life? How will it impact other responsibilities and commitments?
* Should I take on the project as-is or is it better to break it up to get it going?
* Who are the decision makers, key contributors, and partners?
* Do I need to realign myself with other people, tools, or resources to be successful?
* Who is critical to the success of this project?
* What does success look like?
* How prepared do I need to be when I show up?
* Can I meet or exceed expectations?
* Do I need to adjust the success lens to represent something different than their current expectations? Can I see other possibilities that they may not see?
* What are the timelines and what will they mean in my everyday life?
* Is this doable based on the objectives and the timelines already established?
* Do I need to reprioritize other commitments to make this successful?
* What will suffer if I accept this project?
* Am I the best person for this task?
* What personal wins do I expect from this taking on this project ?
* Do I need more information before I start?
* What assumptions do I need to discuss?
* What needs to be documented and signed by both parties before we start?
It’s always a good idea to explore new opportunities as long as you’re diligent about asking these kind of detailed questions upfront, which will minimize your chance of over-committed your business and liife and then once you have decided you can use one of the techniques to say "no, thank you"
JJ
Posted by JJ DiGeronimo
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Group: Business Consulting Buzz Group
Discussion: Say No Like a Pro — When You Must Turn Down New Business
I couldn't agree more. In my recent book, You Sold Me at Hello: How to Get People to Buy Without Being a Salesman, I talk about this kind of thing. All too often we take on business we shouldn't and end up creating a situation that hurts us more than helps us. This very well written article that you've shared should be a must read for all professionals. Great post!
Posted by Doug Johnson
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Group: B2B Social Media
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Heartbreaking, isn't it, to turn business away? But sometimes it is just the right thing to do, for any one of the reasons that Shari outlines. Better to turn the business down than take it on and then mess it up.
In addition to the reasons in Shari's list, we have also turned down business (and even 'fired' existing clients) on moral or ethical grounds. It can cost a lot in short-term lost business but in the long term I think it pays off – and you sleep at night.
Posted by Mike Holland
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Group: The Content Wrangler Community
Discussion: Say No Like a Pro — When You Must Turn Down New Business
One way to deal with this is to suggest they change the scope to match the budget. See if there IS something (a piece of the original project) that you can deliver while still generating a profit for you and delivering value to the customer.
Posted by Constance Semler
Shari (and the group),
For the first time since my business took off in 2007, I have had to recently turned down work. I thought I would never have this happen since, I feel my fees are extremely reasonable, if not, downright cheap!
When I was recently courted (I use this term because it was a true dating experience with this client for over 7 months)! Two Editor changes later and countless phone meetings and writing samples provided and my first assignment came…. My first asssignment was an exciting one. They gave me the parameters and word count and at the VERY bottom of the assignment was the price they were willing to pay… a mere, $25 for over 700 words! Ummm, no thanks!
I wrote something along the lines of: I would LOVE to write this article, however, the budget you have set aside for this does not fit within the relm of our business rates. If (name of a large company) changes their budget for this project, I would be more than happy to write this article for your business. Followed by a rate outline for my business.
I NEVER post on this board but felt compelled when a large company set a $25 budget for a 700 word article. Has anyone else experienced this? I was truly insulted after being courted for close to 7 months only to find that writing an article for this large web based company would end up costing ME money!
Who works for $25?!??!!! NO one I know. So, reffering another writer for this assignment was clearly out. I liked the above article by Shari Weiss -very helpful! But, I don't know anyone that would take $25 for this type of professional work.
Via LinkedIn Groups
Group: eMarketing Association Network
Discussion: Say No Like a Pro — When You Must Turn Down New Business
Make sure the prospect has the internal expertise to perform the functions you require of them in order for you to deliver a quality product. If they don't then odds are the project will be late, will not fit with their needs, and you will be blamed.
Posted by Jacques Spilka
Speaking strictly from a Client perspective. I have researched/sourced Web Developers with Due Diligence, looked at their portfolios, checked references, etc. and STILL found out later that the person/company could not perform. Very frustrating in terms of wasted time and money. Without knowing all the details, some might put me in the difficult Client category. I would disagree. I NEVER hire the least expensive quote, nor the most expensive quote.
I have hired Freelancers as well as small to large Web Developer operations and not one has been experienced, capable or had sufficient creative skills. Price quotes for the gig, even though I have supplied extensive 2 page "Scope of Work" documents have varied from $100.00 to $20,000.00. I have hired from sources like Craigslist to job boards like Odesk to Elance or web searches and even blogs like this one, at Linked In. All with the same result. I have paid up front and into escrow payment accounts. I have tried every source and I still have not found the right person or company. Very frustrating and expensive in both time and money.
Web Developing, in my opinion, is a field where anyone can SAY that they are expert. And, yet could be Entry Level.
Via LinkedIn Groups
Group: A Solo Business – Solopreneurs And Business Owners
Discussion: Say No Like a Pro — When You Must Turn Down New Business
These tips are perfect. I have used a few of them and will certainly rely on the others when appropriate. Thanks for making us aware of this information.
Posted by Janice Long
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Group: Professional Bloggers
Discussion: Say No Like a Pro — When You Must Turn Down New Business
@Donna — I try to get a sense of whether the client has a real budget and understands market rates early on. For instance, I might say "My minimum article fee these days is $400 — is that something you could work with?" Or even better — "Hey, what's your budget?" I actually asked that latter question of a prospect this week, and they simply told me.
It's a nightmare when you're getting stroked off for months on end by someone who doesn't understand professional rates…you want to screen them out as fast as possible.
I had another tale of a client meeting gone wrong on my blog today — Help! I Bungled a Writing-Client Meeting.Posted by Carol Tice
I'll definitely keep this in mind. The point about not lying in case the client decides to wait is a good one. Sometimes it's best to just be upfront about it. I noticed the LinkedIn posts. It's a nice group, so you could share leads over there if you haven't formed a network yet.
Re Donna's question "Who works for $25?!??!!!"–all too many people, unfortunately, as a quick search for the phrase "content mills" will prove. Actually, $25 is on the high side for the e-article databases called "content mills"–most of them run about $15. Of course, there are legitimate e-zines, also small nonprofits who rely largely on volunteer work, from whom it's equally hard to get three figures or any pay at all–but yours is definitely the first case I've heard of of a large company (one that spent months on interviews, yet) trying to get away with it.
Shari–do you have any articles on getting rid of a "clinger client" who, after Project #1 proves (as far as the writer is concerned) that you two are a bad match, still keeps coming back to you again and again with new inquiries? I had one of those once, and neither referring him to other writers, nor being "busy" whenever he called, nor even telling him my rates had doubled, seemed to discourage him.
When clients ask what my rates are, I always say – truthfully – that it depends on factors like the length and complexity of the work, the need for subject knowledge, the speed of turnaround and whether this is a one-off or will supply work over a longer period. So I turn the question around and ask what are their needs, budgetary expectations and timeframe.
A ridiculously low initial budget is an immediate signal that it's not even worth getting into negotiations. But in this case I refer the potential client to the minimum freelance rates recommended by two professional bodies: the UK National Union of Journalists (NUJ) and the Society for Editors and Proofreaders (SfEP) and say that I am sure they will understand that, with over 30 years' experience, I can't go below the minimum. Since I don't know any fellow professionals who would accept lower rates, I don't bother to refer such clients to my contacts.
Deborah Eade