1) When should you say no to a client?
Your reputation means everything for the future success of your business. If a potential or existing client wants you to provide a service or product that you feel is not a good fit for your business, it is important that you say no.
2) How do you not lose the client’s future business?
When you explain (as outlined below) that you will do everything possible to give them the best service (or product) you can and will not take on any work that is not a good match for your business, the client and better appreciate your honesty and desire to do a great job for them.
3) Is there a way to refuse business without offending the client?
Explain that providing excellent service or providing a great product (whichever applies to them) is of utmost importance to you. There are two times that you will not take on business from a client: #1 when you do not feel confident that you can deliver what they need at the level of quality and expertise and in the time required, that you demand of your business. #2 When the work or product requested is not mutually beneficial for everyone involved. For you to continue to provide great service (or a great product) and maintain your reputation, it is imperative that you manage your business efficiently and effectively so every client gets exactly what they need when they need it, and taking on this business is not a good fit.
4) What are the drawbacks of taking on business you don’t feel is a fit for your company?
Allowing your business to take on work that is not a good fit for your company can not only cause unnecessary stress but can also take the future of your business in the wrong direction, potentially cause a reduced reputation and keep the business from progressing the way it otherwise could and should.