Say “no” so you can grow

It’s not always easy to say “no,” especially in business. In the beginning, you may be dishing out a lot of “yes” but, as you scale, it’s important to start saying “no” and focus more on your area of expertise and high-margin revenue. This article will share insights into how you can define your niche and become more confident in turning down leads that won’t support your growth.

As you may know, I am the CEO of K&D Landscaping. I share real-time challenges and opportunities we are facing in hopes of raising the bar in the landscape industry. So, let’s start with a story about a mistake I recently made. A friend asked me if we could landscape their house. Initially, we were excited to help, but once our sales team got into the details of the project, it was clear this was not our “ideal client.” They had big expectations, but their budget did not align with those goals. The project was also well-below our ideal job size, and they did not want to invest in a design, which is a critical component of our process. My team informed me they didn’t think it was a fit based on our ideal client profile, but I still asked them to bid the project because of the personal connection…therein lies the mistake.

At the end of the sales process, I got a call from my friend saying we were much too expensive compared to a few other companies they received bids from, and it just didn’t seem like a good fit. I’m glad it turned out this way, but we wasted a lot of time and resources bidding a job we should have referred out in the first place. Our team has worked hard to clearly identify our ideal client, and the more strict we are with that profile, the better things will run.

So, let’s dive into how you can build a structure around your ideal client in order to avoid unnecessary mistakes like this.

Develop Your Ideal Client Profile

The first step is deciding where you want to focus. There are many categories and subcategories in our industry and the more narrow you go, the better, you can always widen the net later. This selection should also take into account your market and your team's abilities. For example, you don’t want to sell lawn care services in Las Vegas because most lawns there are artificial. But if you're in Chicago, lawn care could be huge.

Targeted Marketing Efforts

Marketing can become even more effective when the business has a well-defined expertise or niche. It’s also a requirement of this method; if you are going to start saying “no,” you must increase your lead flow and referral generation. Creating a targeted marketing campaign that speaks directly to your ideal client is way more effective than trying to appeal to everyone. This can take on many shapes, but the important part is ensuring you are marketing to your ideal client.

Building a Loyal Client Base.

If clients understand and appreciate your specialized expertise, they are much more likely to remain loyal. Building solid relationships will often drive higher retention rates and more long-term contracts. This can also lead to better referrals. When you're recognized for a specific skill, clients understand your expertise and refer you for those jobs.

Competitive advantage

Finding a way to differentiate your company from the industry is vital in a competitive market. It’s also one of the hardest things to do in the landscape industry. Specific expertise can set your business apart from the competition, which may offer a more general range of services. Differentiation may be the competitive advantage your company needs when a client is deciding which business to choose. You can highlight “that while others may do many things well, we excel at this (specific service).”

The Trade-Off: Ignoring Other Opportunities

One definition of focus is eliminating all other options. Over the last few years, I have realized the more we say “no” to opportunities that don't fit K&D’s model, the faster we grow. The problem is you also receive more opportunities as you grow. This requires discipline, systems and team buy-in. It seems counterintuitive, but the truth is when you get narrow in the niche, you can grow quicker and much more profitably.

Many of you may already be focusing on a niche and if that’s the case, let the mistake I’ve shared with you be something you can learn from without having to go through it. Do your best to ignore the personal relationships and run your business as, well, a business.

Raise the bar is a monthly column by Justin White, CEO of K&D Landscaping, written to help improve professionalism in the green industry. He can be reached at justin@kndlandscaping.com.