Say “No” to Business That Doesn’t Meet Your Criteria

Saying “no” to referral prospects who don’t fit the criteria you’ve set for your consulting practice is one of the most profitable things you can do.

I know it sounds crazy to say “no” to business that one of your good, or even preferred clients has referred to you, but getting tied up with someone who is not right for you and your practice can sap you of valuable time and resources, and can leave you frustrated, angry and broke.

If you’re just starting out in business, you’re likely to be tempted to take anything that comes your way just to have an opportunity to practice your new skills and get some experience behind you. And that’s okay if you set limits up front on who you take, how much you’ll do for them and how long you’ll work with them.

At some point, you’re going to have to decide what kinds of clients you can serve the best or the types of clients or businesses you want to work with. And conversely, you’ll need to identify the types of clients and businesses that don’t fit your model.

Here are a few things to consider that can help you maximize your effectiveness:
Clearly identify the types of businesses and clients that fit your model and the kinds that don’t. Define what’s important to you with regard to…

Minimum Standards. Do you want to work with convenience stores, adult entertainment businesses, gas stations, fast food chains, biotech companies? If you don’t enjoy working with these types of businesses, they don’t meet your moral standards, you don’t have the technical expertise, or you don’t see a potential in them, stay away from them. On the other hand, you may enjoy working with service businesses such as estate planning attorneys, CPAs, accountants, financial planners, insurance agents, etc. If that’s the case, target those businesses with very specific marketing efforts and then build your referral strategies to fit those kinds of businesses.

Upside Potential. What is the potential for producing a significant improvement in the efficiency, operations, and profitability in your targeted business? And what is the potential for creating a generous income for yourself from that business? No sense in wasting time with businesses that can’t or don’t have the potential for large jumps in growth, profitability and income for you. You’ll spend just as much time, effort, and energy (oftentimes, even more) with small businesses that can only produce small or modest improvements as you will with those who can be far more profitable and rewarding for you.

Motivation of the Business Owner. If your prospect is not a “10” on a 1 to 10 scale relative to wanting to improve, run like the wind. If they’re not 100% committed to wanting to improve their business, they’re going to be difficult to deal with as time goes on and the ideas, strategies and systems you develop for them will either never get implemented, or will only get half-hearted attention… and that affects your income, your attitude, and your motivation. Don’t waste your time with these people. Remember, the market for your services is huge… there are more businesses that need your help than there are people who can do what you can for the businesses. Position yourself right and you’re in the driver’s seat.

Commitment to yourself that you, personally, will ONLY work with business that fit the above criteria.

You may consider having a trainee or an associate, team member, or colleague that you can refer businesses that don’t fit those criteria to.

Educate your clients and Centers of Influence what kinds of businesses you best work with and what your availability is. By letting them know the qualifications that need to be met, they will be more likely to refer businesses that are better suited for your practice.

If you get a referral, be sure to qualify them by telephone before you spend any physical time with them. This is one of the greatest time savers you have. Make sure they fit the three criteria in step one.

Reporting your efforts and experiences with your referrals to the client or COI that referred them to you is common courtesy and shows appreciation for their efforts. And it can go a long way in solidifying your relationship with your client or COI, and gives you an opportunity to let them know that they’ve either referred the right kind of prospect to you, or what they need to do to refer better qualified prospects in the future. Be careful in your reporting to not reveal proprietary or personal information. The last thing you need is a reputation of violating someone’s trust and confidence by sharing sensitive information with someone else.

Summary:
Referrals… good referrals… quality referrals… are difficult to come by. Especially those that meet your specific criteria. But you have to stick with your guns. If you don’t… if you spend time talking to and working with prospects that are not right for you, you’re taking away time that could be spent working with your good clients, producing results for them and income for yourself.

Keep your eye focused on what produces results. If you position yourself properly and if you only work with clients that meet your pre-defined criteria as discussed in step one above, you will have all the business you can handle… and your income can be well into the six-figures with very little effort and time involvement.