When to say no to a deal. If you want grow say no!
As the #1 Online Life Coach, the biggest question I'm asked by the
successful entrepreneurs I work with is "How do I get to the next
level?" My answer is simple: say, "No" to 80% of your deals. We have
all heard of the "80/20 Rule", but 98% of all entrepreneurs do not
follow it. They are deathly afraid of turning down business, so they
take every job they can and wonder why they don't have the time to do
the really important things, like thinking. I'm getting ahead of
myself, so let's go back to the 80/20 Rule: 80% of your profit comes from 20% of your customers. That is a fact; run the numbers if you don't believe me. I didn't believe it until
I did it in one my businesses that I had owned for over 15 years. Once
I saw it in black in white, I couldn't believe it, 80% of my customers
were wasting my time and making me very little profit. Then the hard
part came, changing my business model. I fell into the same trap most
entrepreneurs do by listening to broke people, you know things like
"Take the business while you can" or "Don't leave money on the table."
The billionaire business owners I'm able to associate with now never
talk this way.
Wait, before you say, "I did this really small job and it lead to a bigger one, so I never turn down a deal." If you want to think that way, it's OK, but if you want to get to the next level, you need to think differently. I have a very successful client in Hollywood that I work with, he hired me to help him make the jump to the elite level of 8 figure deals. I told him the same thing I'm telling you, say, "No to 80%." He was so challenged by this until I explained to him that the deals he was getting now were the ones turned down by the elite level 8 figure guys. If you want 8 figure deals you have think like an 8 figure guy and NOT take 6 figure deals.
Saying no to the 80% also gives you time! John Maxwell the famous leadership author talks about his "thinking chair," he only sits there when he thinks. When was the last time you sat undisturbed for 1 hour thinking? A 1/2 hour? 10 minutes? More than likely you don't have time to think because you're spending it all working with the 80% that only give you 20% of your profit. Time is something that takes getting used to but the pay off is worth any discomfort. I tell most of clients to find a park or grassy area or even get on the roof of their businesses. I tell them to get away and just think. Did you ever notice that you always get great ideas in the shower, why is that? Because your relaxed and your mind is clear. You can accomplish the same thing out of the shower once you make a habit of thinking.However you need time to do this.
When you were young and you outgrew your clothes what did your parents do? They gave them away right? Do the same thing with your customers as your business grows, give them away. You can keep them if you want and stay right where you are, the choice is yours.
Have a question for Evan or want to leave a comment? Click here.