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When We Started Turning Away Clients Our Business Really Took Off

This article is more than 7 years old.

One of the best business-development decisions we ever made was to start turning down business.

When we began Worstofall Design, we were a “me too” company; an agency who attempted to emulate other, larger agencies we admired. We said yes to anyone willing to pay because, in all honesty, we needed the money and also, why the hell not?

What I didn’t understand at the time was that not all dollars are created equal. That saying yes was killing our business.

Bland isn’t a Flavor

By accepting any and all work, we were in effect keeping our agency generic: a “me too” brand. In our first 3 years of business, even when we were doing OK, I was in a constant state of heightened anxiety. Where were our next clients going to coming from? When would they come? Would it be enough? It was an unremitting struggle to keep that pipeline full. Let alone to keep my hair from falling out.

Only when we further developed our brand—found our niche—and started turning away clients, did our company truly begin to thrive. The more we said no to those outside of our specific expertise, the more clients we got! And these weren’t just any kind of clients, they were the ideal people we wanted to work with. Those who were willing to pay a premium to work with us and who wanted to hire us for exactly what we did best.

(Read more about how we found our niche and pivoted here.)

Why “No” Works

Essentially, I learned that a dollar today from a client outside of your niche is worth less than a dollar tomorrow from an ideal client. The dollar you receive today is only cash. But when you work with someone who fits into your target demographic, you receive additional payments in the following ways:

First, “no” strengthens your message. Those who want to hire you, but don’t fit into your business model, just got a great lesson in what you specialize in. If you focus on small businesses and turn down a corporate client, that person will think of you the next time they have a small-business friend in need of your services. You have just created a wonderful referral source of someone who understands exactly what you sell and is also more likely to remember you for it.

Second, nobody forgets the company that said "no" to them. They remember the company that had enough understanding of their own value to pass up instant equity.

And third, saying “no” frees you up to find new clients who will help you build and strengthen your business into the valuable company you want it to be. People tend to surround themselves with those similar to them. And clients beget more clients like them. If you discount your service or do a project you don’t enjoy, or that falls outside your niche, those clients will usually only be a referral source for other similar jobs.

Don’t Continue to Date the Wrong Person

The opportunity cost of spending time with the wrong client is enough of a reason to justify a solid commitment to finding only the right kind of people to work with.

  • Ideal clients help you build your reputation in your ideal niche.
  • Those who you enjoy working with become a great case study to share among future clients and become an amazing referral source.
  • Ideal clients help you learn more about your process, in turn helping you apply your learnings to the next project. Each client brings nuanced challenges and the more of them you do, the more nuanced expertise you achieve and can bring to the table.
  • By refining your process, each project you complete increases the value (and price) and decreases the time spent on it. You are continually sharpening your process and becoming more efficient.
  • Finally, you increase your profit! Only with profit can you achieve the freedom most entrepreneurs are seeking.

You’re Getting More than You Think

When you work with clients outside your niche, all you are doing is making money. You’re not getting the added benefits as stated above. In essence, you are losing future value in your business. Even though a paying client may seem better than no client, remember that when you’re working with them, your time is being redirected away from other appropriate clients. There are better projects you are missing out on that are adding to your overall business goals. It’s rarely worth it.

But What About Having No Clients?

Having zero clients is preferable to having clients outside your niche because they actually stifle your brand’s growth.

But in the real world this may sound nearly impossible—and terrifying. How do you say no to a client when you need the money? How do you say no when you are capable of doing what is requested?

Remember though, taking the weak cash today only prolongs the struggle through to tomorrow.

But I know saying "no" really hurts. It takes serious cajones to do this, which is why most people don't. That's your opportunity, that’s what separates you from the competitors who wimp out and say yes to everyone (even when they know they shouldn’t!) So while it may be frightening, embracing that fear and doing it anyway is a defining characteristic of successful entrepreneurs.

My advice: learn to say no!

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