Learning to say no

When you start your own small business, a common mistake that most people do is taking whatever they can get.

A few days ago, a friend of a friend called asking for personalized robes. Her budget was almost unrealistic and it was obvious she was going for a cheap product rather than one with decent quality. The quantity she wanted was also ridiculously low! 15 units to be exact.

Being the request from a friend of a friend, I jumped at it and asked her the typical order processing questions. Sourcing the product within her price range was almost impossible. I have been debating buying them from certain low-quality stores just to fit her budget and required qualities. This would require me to drive to a store, buy 15 units, deliver the goods and take an almost non-existent margin.

It is time to say no. The truth is, although it is good to have always have orders keeping you occupied, all orders should be screened through the following formula: If amount charged is greater than amount paid including all expenses required to fulfill order, then it is a go.

Easy? Of course! Obvious? Yup! So why do you find so many small business owners taking on non-profitable purchase orders? It isn’t always so black and white when it stares you in the face.

You want to meet the expectations of friends and be known as reliable and helpful. However, remember that in business you have to assess if its worth your time. Be honest with your customers and lead them to a possible person that may carry them. In my case, she already had an alternative.

Remember, this ties into what was written last time. Don’t overwhelm yourself with things you may not have time for.