Tuesday, April 14, 2009

"...but what if they know someone really important?"

I had an interesting discussion the other day regarding turning down business. Yea, you read that right.

You're probably thinking, "Rich ,in this crazy economic climate, why would anyone turn down business?" And, in a lot of ways, you're right -- you probably shouldn't. But, now more than ever, it makes sense to turn down business.

Before you're thinking that Proforma really should introduce some stricter drug-testing procedures, let me explain.

First, most companies (including ours) are set up to do business with a certain type of customer. Another way to phrase that is, we're set up to sell a certain way. For instance, you don't go to a supermarket to buy one Cheerio. You have to buy it buy the box. There are lots of different size boxes, but chances are pretty good that you can't buy just one Cheerio.

Same with most businesses. Items are packaged to make the sale more convenient -- sometimes it's more convenient for the customer, sometimes it's more convenient for the retailer.

Sliding to our businesses, sometimes in an effort to please everyone we'll quickly accept any order -- whether it fits our business model or not. And that's just wrong. Wrong, wrong, wrong.

Why? Because while we're doing something that honestly doesn't work for us, we're taking time away from doing something that might work for us -- calling customers, meeting with vendors, prospecting, marketing, etc.

The one common refrain I hear when I tell people about not accepting jobs is "well, you never know who they might now." Of course, everyone knows LOTS of people (if you don't think that's true, remember the guest list at your wedding). However, just because they know someone doesn't mean they're going to refer you to anyone. And even if they do refer you to someone, there are two additional challenges -- first, getting that person to buy from you and second, hoping that the second person doesn't also want a small order.

The point about "you never know who they know" was brought to light recently by someone using the game "six degrees of separation." This person said that if we bought into that rule, he's only 6 people away from knowing Kevin Bacon.

Of course.

We all are.

The point is, when doing business we need to do smart business. Most people will appreciate it if you honestly say "no, we're really not equipped to do that job properly." They'll probably appreciate it even more if you can refer them to someone who can.

And for the record, I know someone whose friend works at a restaurant where Kevin Bacon's sister is the manager. So I'm only 3 people away from meeting him now...

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