Just Say No

We have recently witnessed a number of colleagues struggling with proposals. Should you always submit or just say no at times?

Resources are scarce for small businesses. They are even more so for sole proprietors. As we often say, a sole proprietor can only work on one task at a time. That translates into only billing one client at a time. The luxury of having multiple employees work on multiple jobs creating multiple work orders simply does not exist when you are a sole proprietor. It is definitely one of the disadvantages of going it alone. So, how to determine which proposals are worth your time?

In finance, there is a term and a formula called Return on Investment (ROI). ROI is calculated by dividing the expected gain or profit on the project by the cost of your investment into the project. A higher ROI means a more profitable project. Estimate your profit, calculate your costs and resources needed, which would include any administrative time spent on the management of any consultants you need for the job. Even a rough estimate of ROI should help direct you as to whether or not the upfront time responding to any given proposal will be worth those efforts.

One key element to be aware of involves pressure or invitations from colleagues to participate in a proposal. If your time does not permit, if your estimated ROI does not meet or exceed your expectations, it is simple, Just Say No. There is no shame in turning away opportunities. If you cannot spare the time, if you have other currently contracted jobs you are earning income on, if the ROI is too low, Just Say No. While it is kind that a colleague has encouraged you to propose on their project, being honest on why it does not make sense for you or your firm to participate should cause them to reflect upon their requirements and why they are not conducive to a sole proprietor’s involvement.

If you are seeking proposals on a specific project for your firm, be cognizant of upfront time and resource commitments that a sole proprietor or a small business may not be able to meet. Regardless of the size of your business, we all seek a positive ROI on all aspects of our business. Know when to acknowledge your firm’s invite and know when to Just Say No. Your livelihood may depend upon it.

Be well.