Hustling is about showing up, following up, and possibly messing up until you hear "yes." But success isn't just about hearing yes—it's also about learning to say "no." Learning to say that one word is the difference between hyperfocused and successful startups and distracted and failing startups.
Here's my talk on how to force yourself and your team to focus on what matters, the second talk I gave at the PODIM 2016 conference.
It's all about how to say no, including why most startups suck at saying no and what to say no to.
80/20 Principle of Building a 7-Figure SaaS Business
Originally, the PODIM organizers wanted me to discuss the 80/20 principle of building a 7-figure SaaS business. I didn't for one simple reason: most of the things I can share about how to build a 7-figure business you can't replicate.
Many of our actions were based on sheer luck, timing, and our 20+ years of business experience.
In general, when people are five, 10, or 20 steps removed from where you are with your startup, they can only offer you inspiration. The people you should seek advice from are one or two steps ahead of you.
I'm far from the beginner stage, but I can share six things we did in the early days of Close that didn't scale but helped us succeed. Read more.
Why Do Most Startups Suck at Saying "No"
Most startups lack this single trait, which is why they fail: focus. You can't become focused if you don't know how to say no.
Most startups suck at saying no. People, in general, suck at saying no. Most people live their entire lives in fear of saying no or receiving a no from other people.
Why? Because they fear missing out, making a mistake, or confrontations. So they go through life, saying yes to everything, and therefore nothing.
In The Disciplined Pursuit of Less, Greg McKeown writes:
If success is a catalyst for failure because it leads to the “undisciplined pursuit of more,” then one simple antidote is the disciplined pursuit of less.
Not just haphazardly saying no, but purposefully, deliberately, and strategically eliminating the nonessentials. Not just once a year as part of a planning meeting but constantly reducing, focusing, and simplifying. Not just getting rid of the obvious time wasters but also being willing to cut out terrific opportunities.
Few appear to have the courage to live this principle, which may be why it differentiates successful people and organizations from very successful ones.
Saying or hearing no is scary because it forces you to prioritize and make decisions. If you want to dramatically improve your chances of success, learn to love the no. Read more.
When to Say "No"
First, you must learn to protect your time and mental capacity. This means eliminating distractions. Ask yourself, "Is this a distraction, or will it move what we're doing forward?" If it's a distraction, say no.
Next, you have to say no to anything broadening your original goals' scope. The broader you go, the less you accomplish, and the slower you move things forward. There's magic in focus because it creates forward momentum.
However, there's no magic in shortcuts or hacks. It's usually just bullshit—don't waste your time on shortcuts.
Finally, say no to anything that does not serve your core customer. To keep myself focused and productive on the things that matter, I use a not-to-do list—and it's made a huge difference in my business. Read more.
How to Say "No"
You should say no:
- Often
- Politely
- Decisively
- Without second guessing
You're in deep trouble if you can't remember the last time you said no. In a startup, you'll always work with imperfect data and can never be sure you've made the right choice—but you still have to make a choice. That means you have to accept the fact that you'll make mistakes.
Step outside your comfort zone and start making mistakes now. Get comfortable with the uncomfortable. Here's how.
Say "No" to ...
- Say no to "Can I quickly interrupt you?"
- Say no to coffee meetings, hour-long meetings, and meetings—period
- Say no to business partnerships
- Say no to assholes with skills or money
- Say no to consultants and advisors
- Say no to bad-fit customers who want to buy
On that last point, selling to the wrong customers will kill your startup.
As founders tend to be passionate about closing their first customers and hustling to initial traction, they must remember that not all customers are created equal.
You will suffer the consequences if you close deals with customers who ultimately shouldn't buy your product because their use cases are not a good fit. Read more.
The ANTI-Product Roadmap
A lot of companies have a product roadmap. How about an anti-product roadmap?
At Close, we use an anti-product roadmap. It's very simple: it lists everything we will never build.
If customers start suggesting certain features, we simply refer to our anti-product roadmap. It keeps us focused and our sales CRM from becoming bloated with useless features.
Another way to beat the feature creep monster is to launch and sell your software early. Read more.
Do You Hear "NO" Enough?
It's not just about being able to say no—you also have to be able to accept hearing it. Hearing no will push you to remain on top of your game. If someone tells you no, here's how to respond:
- Appreciate the honesty and courage it took for them to tell you no
- Don't take it personal
- Don't fight—listen to their reasoning
- Decide if you agree with their reasoning (don't be afraid to question what you hear)
- Understand it's not the end—it's the beginning of the relationship
If you want to grow that relationship, don't give up—follow up. Read more.
What to Say "Yes" to
So, what should you say yes to? Just three simple things:
- Core customers/users
- Building product and distribution
- Core no-bs metric
Don't fall into the trap of tracking vanity metrics. As a founder, you only have two jobs: attract the right customers and help them become successful. Read more.
