Knowing When to Say No
Over the years, I have noticed the biggest profit killer for a company is taking on work that they should have said no to. There is nothing worse than being 6 months into a year long job and losing thousands of dollars because of other organizations working on the jobsite failing to uphold their professional integrity. Yet I’ve watched companies walk into this trap over and over again due to history with a GC or other people in the industry. Now I’m not saying a one off bad deal should kill a business relationship, but I am saying that consistent poor behavior is a red flag and should push any wise manager into exploring and deepening relationships that are more profitable.
I’ve also seen that this tends to be a trap for people pleasers and yes men to fall into. However, it also happens to people who grew their business by taking any job they can get their hands on at first. While in the beginning phases of starting a company, one must humble themselves to obtain work and take what they can get. Often there is a shift that happens once the organization hits their stride and starts becoming in demand in the market. Retaining the power to say no at this critical point is important. It shifts power to the millwork company. Again, I’m not saying be belligerent and just toss aside those who charitably gave and continue to give good work. I am saying to be strategic with what work one accepts.
Oftentimes a well placed no will gain the respect of general contractors and sometimes self respect is more important than bowing the knee to a general contractor who can’t effectively manage jobs, has poor interior designers and architects that cause job over-runs, and consistently disrespect your employees. Just because that GC has a monopoly within a select community doesn’t mean their subcontractors should pay the price in cost over-runs due to their incompetence.
It’s very important to say no in instances of continued profit losses, disrespect, and job cost over-runs on the fault of the general contractor, interior designers, or architects. If it’s necessary to place a bid, then it’s important to increase the bids accordingly to ensure that ultimately the contractor is paying for these hidden costs. Losing work in these instances is better than taking consistent losses. At the end of the day, more work can be found for a company with a good reputation. Consistently operating at a loss is worse than not having work. There is no reason that a busy millwork firm should be struggling to pay their expenses each month. If you find that your drowning in work, but struggling to pay the bills that is a direct result of not saying no to bad work.
