3 Reasons to Say No to Prospective Clients + When to Say It
When you’re starting out, the thought of saying “no” to a prospective client can be scary. Turning down income? And what will that person think or say when you say no?
From lawyers to interior designers to hair stylists, service-based businesses generally have to price based on their time and skill level. Putting a number on the intangible is something many of us have struggled with. It can feel like you have to justify your pricing.
That’s why turning down clients is a crucial part of running your own business–and a lesson we’ve all learned the hard way at one point or another. So, why is it so important? And when should you definitely use that scary two-letter word?
3 Reasons to Say No to Clients
There is beauty in saying “no” that usually outweighs the work and income you would receive from a client who is not a good fit.
Increase your revenue.
Look for the right clients–and by that we mean those who:
Don’t question your pricing
Respect your boundaries
Keep coming back for more
Working with clients who won’t pay you what you’re worth eats up your bandwidth without earning a profit. That’s time you can’t spend searching for your dream clients we mentioned above! However, when you focus on quality over quantity and enjoy both the client and the work, providing superior service becomes a happy side effect.
Maintain control of your business.
Clients who don’t respect your boundaries and processes will drain your time and energy and cause you stress. These are usually the same clients who give pushback, don’t take your advice, and won’t let go. They hired you for a reason: You’re the expert in your field, so they should trust your knowledge and experience.
One of the top perks of owning your own business is that you get to be in control! Remember, you put those boundaries and processes in place to protect yourself. If a client doesn’t respect your hours of operations or provide crucial information that helps you help them, they’re probably not for you. Asking questions is one thing, but dismissing your processes will make it difficult for you to deliver quality service. And that could lead to both you and the client being unhappy.
Open yourself to better opportunities.
Not to mention, spending all your time and energy on a client who isn’t a good fit will result in missed opportunities with potentially amazing clients and projects.
But when you maintain control of your business and time, you can choose how you spend that time. You can search for and welcome new clients and projects that light you up. You’ll also be ready when the next big opportunity comes your way.
Best of all, working with your dream client is a mutually beneficial relationship that not only helps them grow, but also allows you to thrive!
Say No to Clients Who…
Can’t afford you.
We’ve all been there: A prospective client comes to you in dire need of your services, but can’t afford it. It would be so easy to simply lower your price. Some work is better than nothing, right?
Not necessarily. Unfortunately, many fall victim to a scarcity mindset and struggle to turn down work. In these instances, remember that you are not overpriced, you’re simply over their budget.
When you offer a service, it’s difficult to compete on price–and certainly not ideal. It can lower the perceived value of your brand and service. Plus, you’ll be stuck working at a rate you’re not happy with, which can lead you to resent the client, which can lead to subpar work and customer service…you get the picture.
It’s an all-around unpleasant cycle. And certainly not why you started your own business!
Service providers can often be more successful and profitable by focusing on quality over quantity. Nurture the existing client relationships you have, those you already enjoy working with who appreciate you. Work on making them long-term clients instead of trying to bring in a slew of short-term clients.
Even if it’s a friend or even a dream client, don’t accept work from someone who can’t (or won’t) pay you what you’re worth. Send them some of your free resources or more affordable options that could help them until they can afford you. If that’s not an option, refer them to someone who might be in their price range.
Need something you don’t offer.
Have you ever had a prospect approach you who you’re super excited to work with, only to find out they’re looking for a service you don’t offer?
For example, you’re a social media specialist and your dream client just asked if you provide graphic design. You may be able to learn it on the fly–you might even have a little design experience. But just because you can do something doesn’t mean you should. Extending your services to offer something you’re not skilled at or don’t truly enjoying doing could:
Water down your brand and confuse people
Distract from your strengths
Take up more of your time due to a learning curve
Result in an unhappy client
Before diving into a project, make sure you know the entire scope of what they’re looking for. If it’s not a fit for your expertise, say no and refer them to someone better suited to help them with their needs. Then remind them specifically how you can help them in the future.
Gives all the red flags.
Working with your ideal client should feel easy, not hard.
Sometimes a client will come along and you’ll immediately know it’s a no in every fiber of your being. The red flags are flying. If you take on that client despite knowing after the first 15 minutes that it will be a struggle every step of the way, imagine how miserable you’ll be for the duration of the project.
This is when listening to your gut is critical! That level of stress is simply not worth your time and sanity. Saying no in these instances will free up your time and energy for jobs that will bring you joy and strengthen your reputation.
If you feel comfortable enough, you can still refer them to another professional or resource you feel would be a better fit. After all, there’s someone for everyone.
Next time you need to say “no” to a prospective client, remember to trust yourself and your abilities. Only work with clients and projects that align with your purpose and goals. And of course, those who will pay you what you're worth!
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