Entrepreneurs’ Tips to Making Good Business Decisions

Entrepreneurs are considered serial decision makers because they make lots of decisions every day and are generally wired to be risk takers and aren’t afraid of learning from their mistakes. Entrepreneurs have to know when and how to say ‘no,’ and be good at delivering the message. All startup leaders are besieged with requests for their time, attention, talent, money, or influence, and sometimes even good requests won’t fit into the time and energy you have available.

For most of us, having to say ‘no’ somehow feels like a rejection, so we hate to do it. Instead, too many entrepreneurs just say ‘yes,’ and regret it afterward.

So here are some tips that I have accumulated over the years that can help you say the right thing the right way:

1. Give yourself time to think. 

Before responding with an enthusiastic ‘yes’ that you never meant, or a cryptic ‘no’ that will ruin a relationship, ask for time to mull it over. It’s acceptable business practice to say that you need to check your calendar first, or pass the request by other principles before deciding. Commit a date for the final decision.

2. Explicitly evaluate the pros and cons. 

First, make sure you understand the full implications of a simple yes or no response. Every ‘no’ answer reduces the likelihood of another opportunity along the same lines, while every ‘yes’ answer increases your workload and the probability of burnout on your long list of critical items.

3. Listen to your gut. 

Sometimes we say ‘yes’ because we love the excitement of a new idea, when our instinct is telling us that it implies many complex issues that we are not prepared to deal with right now. It’s a fact that our brain often stores relevant information that we might not be able to vocalize right now. Trust your judgment.

4. Negotiate a return consideration. 

Often people asking for favors don’t realize or consider the cost, so you shouldn’t hesitate to ask for a reciprocal favor. It may make that person re-think their need for your help, or you may actually get more than you give.

5. Lead with positives when saying no. 

Mute the sting of rejection by rewarding the person for being aggressive and creative, while not directly accepting the contract or proposal. It may even be appropriate to give some reward, such as access to an alternative opportunity, or recognition in front of peers, to encourage the source.

6. Be logical, calm, and concise. 

Choose your words wisely to avoid confrontation and a defensive or emotional reaction, but make sure the answer is clear and understood. No one wins when you say ‘no’ so softly or ambiguously that the other party reads it as a ‘yes’ or even a ‘maybe.’ Skip the detailed explanations.

People have learned the art of asking, so you need to learn the art of saying ‘no.’ Rid yourself of the fallacy that you must say ‘yes’ to be viewed as a leader. If the request presents a moral dilemma to you, your code of ethics should allow you to refuse, rather than lie to the other party, or agree to something you can’t deliver. Just say ‘no,’ and smile as you say it.