“We've said no to Fortune 500 companies,” said Tim Bergler of Percipio Group Consulting during an expert panel session with 50 entrepreneurs in the room. Bergler was sharing the one piece of advice he would give to budding entrepreneurs in Portland, Oregon Accelerator OE program. “Don't be afraid to say no if you can't nail the job for your client,” he continued. His answer rang a bell for me.

Recognize the power of no

As I thought about the most successful entrepreneurs I know, I realized say no for most “opportunities”. When I reflected on my own companies, I noticed that our greatest successes happened after we got really clear about what we weren't going to do.

The bottom line is that most people say yes. When you start a business, you mostly think about what you're going to do – which is pretty much anything to grow the company. So you say yes to everything and focus on getting as many sales as you can. And while this may work in the short term while you're smaller, it doesn't work in the long term and may even keep you smaller.

This is because as a growing company, resources are limited and can be easily spent. Saying no is critical because it empowers you focus your limited resources — people, time, money — on the essential elements that best drive success.

Connected: Stop Working On Yourself Too Much For Saying 'Yes' Too Often – Here's How To Harness The Power Of A Simple 'No'

Compile your “Won'ts” list.

While it feels counterintuitive, the most important question to ask is, “What I won't do we?” Get your team together and make a complete “We won't do” list. Be intentional about it and commit to the outcome. See how this exercise focuses and drives your company.

Businesses with a narrow focus on providing only what they can give the customer – a product or service that is not easily found elsewhere – are the successful ones. Think of all the businesses you love. Are they doing everything for everyone, or just one thing extremely well?

Take the food business. Standard grocery stores sell an amazing range of food items in a super competitive segment with low profit margins. Compare that to Costco or Trader Joe's, which are highly profitable and focused on what will or won't sell. They only stock value-added items that customers can't find elsewhere. Major fast-food businesses—McDonald's, Starbucks, Dunkin', Chick-fil-A and Taco Bell—all have strong “Won'ts” lists.

A recent title referred to “the most important stock on planet Earthwhich rose from obscurity to a $2 trillion valuation because of its “Won't Do” list. That company, Nvidia, creates technology that enables AI. Nothing else.

Connected: Focus as an entrepreneur is about choosing opportunities wisely

Impact of strategic release

I failed to create a “I won't do” list for my first company, a commodity business that wasn't particularly successful.

The second time around, my self-storage business was much more focused. We acquired our biggest competitors – Public Storage, Extra Space Storage and CubeSmart. Then, we thought deeply about what we could do to ensure that they didn't, as a way of doing it we differentiate ourselves.

We made a comprehensive list detailing what we didn't like about those companies. This list informed our “Won't Do” list, which includes:

• Our prices change every day
• Sell ​​or push additional products/services
• Save on hidden moving costs
• Route calls through a call center
• Act as if our client is bothering us
• Insurance mandate
• Become a national company
• Place a client in a space that is not suitable for them

This list is simple but magical. It does four remarkable things:

1. It determines what you will do. Deciding what you don't like and won't do is a hack to identify what you will do, which is basically the opposite. Creating a “Won't Do” list creates a clear, inspiring answer to what you will be for your customer.
2. It becomes the ultimate time saver. By eliminating what you won't do, you create space to focus on what you will do—and improve that offering.
3. It simplifies decision making. Decisions are either in the brand or off-brand; the list makes it pretty clear.
4. It clarifies your brand in a way you wouldn't otherwise be able to. When you nail down what you're going to do, your company will be more successful and profitable. You offer something unique that is not a commodity.

Your “Won't Do” list is an essential business tool. It not only limits the scope of the business – it can also help shape the way you operate; your business practices, pricing structure and how you will treat your customers. A plumbing company may opt out of electrical work, but also rule out practices such as overcharging, pushing upgrades, or setting half-day appointment windows. After all, a “Won't do” list simplifies your focus and helps narrow your space.

Connected: How to say 'no' more often: Why every entrepreneur needs a 'do-not' list

Focus your business with boundaries

Back to Bergler, who ran a management consulting company with a narrowly defined space where they could add significant value. He was like selectively about the quality of people on his team as he was with the type of business they would be doing. The quality of the resulting work put them in high demand. Eventually, new job opportunities outstripped capacity. He turned down a lot of business and even referred clients to competitors when he felt his company couldn't really make it.

As a result, customers began to approach Bergler first because they had so many faults with low-end competitors. This made Bergler the preferred provider for their best customers. When he chose to sell the business, multiple buyers were confident in the company's stable earnings due to 20 years of consistent performance and high customer satisfaction.

With our self-storage company, we had a lot of success quickly. Our differentiated brand made us a customer favorite, earning us higher marks than big-box companies and ultimately making us a great acquisition candidate when we chose to sell.

When we started a new company that focused on vehicle storage, one of the first things we did was buy out our competitors and come up with our own “Won't Do Do” list.

As I think about the many businesses I know over 20 years in the Organization of Entrepreneurs, I can tell you that there is a strong correlation between success and sticking to a strong “I won't do” list. Do yourself a favor: Make your “Won't Do” list today.