One of the most valuable lessons I learned as a venture capitalist, and one that my partners and I took super seriously, was how our personal brands and firm’s brand would be built on how we said “no.”
Being in the VC business is being in the business of saying “no.” We looked at 300-400 deals a year and funded two or three. Every week I had to say “no” to lots and lots of people. Heck, Marc Andreessen said “no” 1,500 times last year at his firm.
It’s hard to tell someone you’re not going to provide the funding to get their company started when the person you’re speaking with likely has put months or years of their lives into the business they’re pitching to you. The easy way out is to avoid it. And a lot of the time that’s what happens.
A surprising minority of VCs just won’t ever get back to the entrepreneur. Others will send a short, frequently cryptic “your business does not fit with our criteria” response. Neither of these is helpful or particularly honest because VCs pass on deals for very specific reasons that they discuss with their partners in Monday meetings.
So my partners and I decided when we said “no” we would do so in a way that passed along the reasons why – that way the entrepreneur would be able to make some use of our collective thinking. If I felt the business model was flawed, the team was weak, or product strategy too broad – then sharing that information might help the entrepreneur make adjustments. But at least I would be straight-up.
Many of these businesses were fundable – just not by us (that’s where the “did not fit our criteria” was true), so I strove to pass along information that might help the entrepreneur have a better shot at the next firm they pitched.
Not only is it hard to be this direct with someone, it also takes a lot more time than going silent or sending a curt generic note. The nature of leading a startup means being tenacious and persistent. So frequently I’d spend an hour or more while the CEO would try and talk me out of my decision, rebut my argument, and bring more data to the discussion.
This is super relevant regardless of what business you’re in. You will say “no” far more often than you will say “yes”, and becoming comfortable and constructively effective at saying “no” is a way for you to build value in your personal brand as well as your company’s. Whether it’s turning down a proposal from a contractor or letting the many people applying for an open position know they’re not going to make the cut, you can distinguish yourself mightily in how you convey your decision.
You have the opportunity to share your personal values – your brand – to the many people you say “no” to and who knows what opportunity that might create down the road. And in an age where personal brands are becoming increasingly essential to your company and your career, learning how to effectively and constructively say “no” is critical.
So, the next time you’ve got five or ten or fifteen candidates for an open position, invest in your personal brand by telling the folks that didn’t get the job why you chose someone else. You’ll be doing each of them a favor, and building a brand for yourself that you’ll be proud to associated with.