The Most Expensive Word in Business Might Be “Yes”

I'm writing this from New Jersey.

Traveling gives me time to think about decisions I've made in business, not only the ones that worked, but the ones that created problems I probably could have avoided.

And one thing I've become much more aware of is how expensive the word “yes” can become.

Entrepreneurs are taught to chase opportunity.

Say yes to the meeting.

Yes to the client.

Yes to the partnership.

Yes to the new service.

Yes to the event.

Yes to helping somebody.

Yes to the project because the revenue looks good.

When you're building something from nothing, that mentality can be useful. Some of the best things that have happened in my career came because I was willing to take a chance, get on a plane, make the call or walk into a room where I didn't know anyone.

But eventually your business changes.

The problem is no longer finding opportunities.

The problem becomes deciding which opportunities deserve access to you.

That's a completely different stage of entrepreneurship.

Every Yes Creates an Invisible No

This is something I wish more business owners understood earlier.

When you say yes to something, you aren't only accepting that opportunity.

You're simultaneously saying no to whatever else could have occupied that capacity.

Take on a difficult $5,000 client and you might be turning down the capacity to properly serve a great $20,000 client next month.

Agree to an unnecessary two-hour meeting and you've said no to two hours of strategy, sales, family, exercise, thinking or rest.

Launch another service and you've potentially taken resources away from becoming exceptional at the services you already offer.

Every yes has a second price printed on the back.

Most people never turn it over.

Revenue Can Lie to You

One of the biggest mistakes I've seen entrepreneurs make is assuming more revenue automatically means better business.

It doesn't.

Imagine two clients.

Client A pays you $10,000 per month.

Client B pays $7,000.

Obviously, Client A looks better.

But now calculate the actual cost.

Client A requires constant calls, custom work, additional employees, revisions, emergencies and 40 hours of leadership attention every month.

Client B follows the process, trusts your team, pays on time, refers people and requires 10 hours.

Suddenly those revenue numbers don't tell the entire story.

I've learned to look beyond revenue per client and think about revenue per unit of organizational attention.

That's a number most financial statements don't show you.

But you can feel it inside a company.

Some revenue funds your business.

Some revenue consumes it.

Calculate the Cost of an Exception

Here's a framework I think can save companies a tremendous amount of trouble.

Whenever someone asks your company to make an exception, don't only ask:

“Can we do this?”

Ask:

“What happens if this becomes normal?”

One special payment arrangement isn't difficult.

Twenty are.

One custom report isn't difficult.

Then every client wants one.

One employee with a completely different schedule can be manageable.

Then four people want exceptions.

One custom service can make money.

Then your sales team starts selling five versions of it.

Exceptions create complexity.

And complexity has a strange characteristic:

It's cheap to create and expensive to maintain.

Before approving an exception, calculate its second-order cost.

Who has to remember it?

Who has to execute it?

Who has to bill it?

Does software support it?

Does another employee need to know?

Will the customer expect it again?

Could other customers reasonably ask for the same thing?

Sometimes the answer will still be yes.

But now you're making an informed decision.

Create an Opportunity Filter Before You Need One

The worst time to decide whether an opportunity is right for you is while you're excited about it.

So create the rules beforehand.

At Flores Marketing Firm, the exact opportunities will always vary, but I increasingly think about decisions through a few basic questions:

Does this fit where we're going?

Is it profitable after the real cost of delivery?

Do we have the capacity to do it exceptionally well?

Does this relationship feel mutually respectful?

What are we unable to do if we accept this?

And one of the most important:

Would I still want this opportunity if nobody else knew I got it?

That last question exposes a lot.

Sometimes entrepreneurs pursue things because they're genuinely valuable.

Other times we're attracted to the logo, the title, the photo, the association or the ability to tell people about it.

Those aren't necessarily bad things.

But prestige can become very expensive when you confuse it with profitability.

Put a Price on Distraction

This is another exercise worth doing.

Think about the three biggest initiatives your company is working on right now.

Now list everything else competing for attention.

New product idea.

New market.

New partnership.

New office.

New platform.

New hire.

New event.

New service.

For every additional initiative, ask:

What existing priority will receive less attention because we're doing this?

If you can't answer that question, you're pretending your organization has unlimited capacity.

It doesn't.

Neither do you.

The ability to focus is partly the ability to disappoint opportunities.

That's hard for ambitious people.

We see possibility everywhere.

But if you plant 100 seeds and constantly dig them up to plant something new, you don't have a farm.

You have dirt.

“Not Now” Is an Underrated Business Strategy

Saying no doesn't always mean never.

This has helped me tremendously.

Sometimes an opportunity is good.

The timing is wrong.

You don't need to reject the idea.

Put it into a Not Now file.

Write down:

What is the opportunity?

Why is it attractive?

Why aren't we doing it now?

What would need to become true for us to reconsider it?

Then review that list quarterly.

This prevents two mistakes.

You don't impulsively chase every idea.

And you don't permanently lose good ideas simply because the company wasn't ready when they appeared.

That's disciplined optionality.

Protect the White Space

As your business becomes more successful, people will happily fill every available minute of your life.

There will always be another meeting you could attend.

Another introduction.

Another event.

Another opportunity.

Another person who “just needs 15 minutes.”

If you allow it, your calendar will eventually contain everybody's priorities except your own.

I've learned that an empty space on a calendar isn't necessarily wasted time.

Sometimes it's capacity.

Capacity to think.

Capacity to handle something unexpected.

Capacity to take an important meeting that didn't exist three months ago.

Capacity to spend time with your family.

Capacity to travel.

Capacity to recognize an opportunity because you weren't already drowning in ten others.

You don't need to fill every seat on the airplane to make the flight valuable.

Businesses need some empty seats too.

Success Changes the Question

Early in my career, I spent much more time asking:

“How do I get more opportunities?”

That's a necessary question when you're starting.

But eventually the question needs to become:

“Which opportunities are worthy of what we've built?”

That isn't arrogance.

It's stewardship.

Your employees are trusting your decisions.

Your clients are trusting your capacity.

Your family is affected by your calendar.

Your reputation is attached to what you accept.

Your future is being shaped by where today's resources are going.

So choosing carefully isn't selfish.

It's part of leadership.

New Jersey Gave Me a Different Way to Think About Growth

As I travel, I'm realizing that success doesn't only expand what you can do.

It expands what you could do.

Those are very different things.

More relationships create more invitations.

More credibility creates more opportunities.

More resources create more possibilities.

But maturity is understanding that capability doesn't create obligation.

Just because you can doesn't mean you should.

That's true with clients.

Investments.

Partnerships.

Hiring.

Expansion.

And even your own time.

The entrepreneur who learns how to create opportunities can become successful.

The entrepreneur who learns how to choose between them can build something that lasts.

So the next time an exciting opportunity lands in your inbox, don't immediately ask:

“How can we make this work?”

Ask:

“What does saying yes actually cost?”

Then turn the decision over.

Look at the price on the back.

Sometimes the answer will still be yes.

Sometimes you'll realize that one of the most profitable decisions you can make is politely walking away.

And sometimes the opportunity you protect your capacity for hasn't even arrived yet.

Writing from New Jersey.

— Corey Flores
Founder, Flores Marketing Firm