After 20 years running the TV show This Old HouseKevin O'Connor has developed a skill that most people take a lifetime to master: saying no. Like one small business ownerit's tempting to say yes to every opportunity, but after working with marketers for the past two decades, O'Connor cautions against that habit, both professionally and personally.

'No' is powerful,” he says. “Everybody wants you for something, and it's up to you to prioritize. And 'no' is how to send that message – that's not important enough to you or me. 'Yes' means it's very important.”

The same goes for small business owners excited about their new endeavors. It is tempting to accept every opportunity to ensure that there is work for the books and the money coming in. However, O'Connor says a busy schedule isn't always one productive one.

“Understanding the concept of opportunity cost is important because every job you get means you're full for that period of time and can't get another one,” he explains. “So now you're in a position where if you get a lower-quality job, you've blocked off a whole chunk of your calendar to get a higher-quality job.”

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He admits that making this judgment call is difficult. Knowing if you've made the right decision can be scary. However, O'Connor says that when you have one strong business plan that can withstand those dry spells, you will be more successful than if you had said yes to everything.

“(Small businesses need to) be lean enough that they don't need to lay people off when it slows down, but be big enough to be able to adapt and bring in revenue in different ways,” he says he.

When small businesses agree on a job, O'Connor says the business plan, especially three essential parts — collaboration, specialization and productivity — will have made all the difference.

Home service businesses routinely depend on subcontractors or outside specialist firms. Although it can be tempting to see outsourcing as a supporting role with your business as the hero, the reality is that everyone must work together to deliver the project. O'Connor says it's not about winning because it's not a competition. It is about succeeding together.

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“Collaboration is key,” he says. “To avoid that, to try to win or beat those other people that you rely on (is a mistake). There are a lot of people who leave our industry, and that's a big part of the reason why — because they do that. They don't know how to integrate those services. They're trying to win as opposed to trying to succeed.”

O'Connor also emphasizes the importance of specialization, particularly letting those with the right expertise handle the jobs they're trained for. It is easy for a business owner to shoulder the burden of multiple roles, but this mindset is not productive or good for mental health.

“So many times the people who run these small specialty trading companies think they're also going to be the finance person—that they're going to do the billing, the materials, the pricing, the collection, the advertising—and that doesn't make a lot of sense,” says O'Connor. . “They would never send the plumber to fix the kitchen. Why do you think you're going to be the one to do the finances?”

The last part of the business plan is productivity, which O'Connor believes is the “secret sauce” for scaling.

“It's the definition of doing more with less,” he says. “I've always seen that successful companies that have grown from small to large, from two people to 70 people, are the ones that embrace specialization and productivity wholeheartedly. And they consistently follow through on it. Everything they do: Does this make me more productive? Does this make my employees more productive? Does it make it easier, more efficient?“

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Embracing collaboration, specialization and productivity is a game changer for businesses. But what exactly does it mean to build a brand in this industry? O'Connor says it's all about authenticity. He recalled one general contractor, Zack Dettmore, who built a brand simply by being himself.

“He makes his story so authentic. He treats his people and his customers so well that people start flocking to him,” says O'Connor. “Over 90% of his new hires find him through social media. They come to him and say, 'I'd love to work for you.' And the same goes with acquiring clients.”

When it comes to this line of work, O'Connor advises business owners not to chase but to attract, not to win alone but to succeed together, and to build the courage to say no.

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With more than two decades of experience, O'Connor has found that the most successful businesses are those that follow these key principles:

• Don't ignore critical feedback. Use it as an opportunity to grow and move forward.
• Attracts new talent. Understand what young professionals care about and be comfortable knowing it's different than when you were their age. They will have a unique and valuable perspective to keep the business in tune with current trends.
• Minimize the opportunity costs of saying no. Just because you're filling your calendar with work, doesn't mean you are revenue maximization. Step back and create a business plan to take advantage of the opportunities that will have the greatest positive impact on your business.
• Optimize productivity. Delegate work to specialists, collaborate with other businesses on complex projects, and practice how to identify opportunities that serve your business goals.
• Become an authentic storyteller. Connect with your target audience in ways that are meaningful to them build trust. To better understand what is authentic to you, evaluate your values ​​and what you want your business to represent.

Listen to the episode below to hear live from Kevin O'Connor, and subscribe to After the Review for more from new business owners and reviewers every Thursday. Available at Spotify, Apple Podcasts AND Pandora.

Editorial contributions from Erin Palmero AND Kristi Lindahl