When to Say “No” in Business

Most people start a company with the goal of securing as much work as possible, so turning down new business opportunities might seem extremely counter-intuitive. However, many experiences have reminded me that saying “no” to a sale can sometimes be wiser and more valuable than taking on additional responsibilities. Here are a few instances where knowing when to say no can make all the difference.

You’re Feeling Overwhelmed

Taking on a new interiorscape project when you’re already swamped, your staff is exhausted, and you lack the necessary materials and equipment—all while cash flow is tight—is a recipe for failure. Not being able to invest the proper time and capital can lead to major mistakes such as misquoting prices, underestimating labor time, and not having the right resources to complete the job. Mistakes can lead to profit loss and sometimes client loss.

A perfect example of this is a local company that hired me to service their office. Every week when I visited their business, they had taken over another section of the three-story office building. They eventually occupied the whole building, handling accounts for small mom-and-pop shops all the way to large national chains.  

One year later, they suddenly downsized to a few small offices. They expanded too quickly and weren’t able to fulfill customer promises, didn’t have the technical infrastructure available to handle large client demands, and ended up losing over eighty percent of their clientele. Their bad reputation for poor customer service spread like a virus, which made gaining new business extremely challenging. Letting potential clients know you have to put them on a waiting list may earn you more respect and future business than taking on a job that you can’t complete to expectations.

You’re Unable to Deliver a Quality Product or Service

Another critical time to say no is when you can’t deliver a quality product or service. Take, for instance, providing Valentine’s flowers. It is one of the most stressful tasks of the year. Vendor prices double, inventory gets wiped out quickly, and most orders have to be delivered on that one day, or you risk having very upset customers.

One year, I had a new interiorscape client text me the night before the holiday. He wanted one of our select arrangements but never confirmed his order. When he didn’t respond to my follow-up texts until noon the following day, I had already sold out. Instead of apologizing and letting him know it was too late to fulfill his order, I decided to deal with the stress of running back to the wholesale supplier—my first mistake. My second mistake was buying the only sunflowers left, which were half the size and quality, and my third was agreeing to meet him with the flowers at the town center, now clogged with Valentine’s Day traffic.

At that point, stress levels were at an all-time high. I arrived at the first restaurant where I thought the client was, and as I walked among the crowd, the bottom of the cardboard gave away—wet from spilled water—and the vase crashed onto the sidewalk. This should have been a giant white flag telling me to surrender. However, I managed to assemble what was left of the flowers into a spare vase and arrived late at the correct restaurant. Even though I offered the sad arrangement at half price, I disappointed my new client, made my work look shoddy, lost money, and remained stressed. In situations like these, it’s clear that overcommitting can lead to disaster.

You’re Tempted By Something Too Good to Be True

It’s also important to be cautious of opportunities that seem too good to be true. Several years back, I got an opportunity to design for a new start-up company that moved into the top floor of a beachside high-rise. Walking in, I had a hard time believing anyone could focus on work with views of miles of blue ocean, sandy beaches, sunbathers, and surfers enjoying the sunshine from every window. The ping-pong table and arcade machines only added to my suspicion about their work ethic. As with any new customer, I was curious to know what their company did, but only got a vague answer. Based on the art, furnishings, and location, it had to be extremely profitable.

Despite my best efforts to fulfill their expectations, each time I submitted a design, there was something wrong. Even though this could have been one of my biggest sales, I stopped trying after no response. I assumed they gave the project to a competitor. But later, I saw the company on the local news for defrauding customers with phony telephone bills. This impressive-looking business was nothing more than a scam. Two of the owners left the country, leaving behind thousands owed to local vendors. Luckily, fate saved me from dealing with a huge loss of time and money on what appeared to be a dream client.   

Learning to say no can be challenging, but it’s a crucial skill for any business owner. By recognizing your limits and carefully assessing opportunities, you can avoid the pitfalls of overcommitment and deception. Sometimes, turning down a job is not just a smart business decision—it’s essential for long-term success and sustainability.