Entrepreneurs are constantly on the lookout for new opportunities. Learning to recognize and seize opportunity can often be what sets successful and unsuccessful entrepreneurs apart, but making that differentiation can be extremely difficult. In the early stages of a new business, pursuing each and every opportunity for development, expansion, and networking may feel like a productive strategy. However, that isn’t necessarily a healthy choice for a new business. In fact, learning to say ‘no’ to opportunities turns out to be one of the most important skills for up-and-coming as well as established entrepreneurs. Chasing every opportunity leads to fatigue, burnout, and loss of direction and focus – each of which can be fatal to a startup’s success. In the end, it’s all about conserving energy and focus to develop your startup in the direction you intend it. Here are four common situations in which saying ‘No’ is best for your business.
When ‘Yes’ means losing direction or control
As a new entrepreneur, you may be hungry for work and recognition. This makes it hard to turn down projects and requests. However, saying ‘yes’ to every opportunity frequently means running your business in numerous, diverse, and possibly contradictory directions all at once; you’re simply reacting rather than pursuing those opportunities and goals that your original business plan was all about.
Imagine your business is a car. If you pick up every person you meet and drive them to where they want to go, you’ll never arrive at your intended destination. It’s important to say ‘no’ to potential passengers who won’t move you closer to your goal.
When ‘Yes’ is a FOMO response
In business and in life, avoidance of ‘no’ is often a “fear of missing out” (FOMO) response. That is, fear that the opportunity passed up will turn out to be so amazing or lucrative that missing it will feel like an enormous mistake. In reality, that’s seldom true. There will always be more opportunities, and grasping at chances just because they might work out is a bit like fishing without bait. Sure, there’s an off chance that something might bite, but it’s wiser to make strategic, researched decisions about where, how, and with whom you’ll try to catch a truly big fish.
When ‘Yes’ means losing a better deal
In this case, use ‘No’ to negotiate for a better ‘Yes.’ Instead of simply accepting requests, invitations, and new projects as-is, use an initial ‘No’ to get more value from the opportunity. Search for ways to increase profits, reputation, awareness, and resources via agreements with others. This doesn’t have to be rude or selfish – negotiate for creative win-win ways to exchange value with the people and organizations you work with. As you do this more often and in a positive, collaborative manner, others will get in the habit of bringing more of value to the table when they work with you.
When ‘Yes’ leads to burnout
Saying ‘No’ doesn’t have to represent a loss. Think of ‘No’ as a way to redirect time and energy to be truly focused and successful on your business’s core mission. Again, consider the car analogy, and this time fuel represents your time and energy as an entrepreneur. If you take a detour (a ‘yes’) that depletes your fuel so much that you cannot reach your intended destination, you’ve sacrificed the overall success of your mission. Remember, there are only 24 hours in a day, and human beings are not infinitely productive. Use ‘No’ to keep yourself from burning out and stalling before reaching your goal.