Saying NO in an Ecosystem Where You Want to Thrive

Saying "no" can be one of the hardest things anyone can do.

It seems simple—how hard can it be to say "no"? It is merely a two-letter word.

The truth is, saying "no" is complex because many of us were raised with the mindset that saying "no" makes us bad people. This perception also stems from our feelings when we are told "no".

Remember the last time someone said "no" to you when you needed their help? It didn’t feel good. You were probably disappointed and, at the extremes, felt like they were a "bad person" just for a moment.

This feeling drives our inability to say "no" easily. Unless you have mastered your emotions, saying "no" can be hard, especially to people you care about.

So, if it’s that hard, why is it important to say "no"?

We don’t want others to think we are bad people, nor do we want them to feel like we do when we are told "no" in times of need.

How This Affects Entrepreneurs and Investors in the Continent

1. Entrepreneurs: Early-stage entrepreneurs often find themselves caught between good and bad. In Africa, the amount of support you receive from people often depends on whether they think you are a good or a bad person. While this may be common in other ecosystems, in my experience working across multiple ecosystems, entrepreneurs in the continent have too little market penetration to risk being seen as "bad". It’s usually not about the product, as is the norm for early-stage entrepreneurship, but about the entrepreneurs themselves. Saying "no" to influential people and close friends might mean risking a lack of support.

2. Investors: Entrepreneurs will realise that investors often try to avoid saying "no". Their default "no" is to ghost you or string you along for as long as possible. These situations are terrible for the person experiencing the ghosting or being strung along. Entrepreneurs keep hoping that, by some luck, investors will come back with a "yes". The excuse they give is that they are busy, which, frankly, they are. However, fundraising takes a lot of time from the entrepreneur, so waiting for three months for an investor who could simply say "no" is not ideal. Irrespective of how hurtful the "no" is, the hurt lasts just for a moment. Yet it’s important to note that investors are humans too, brought up to be polite but also educated to not risk losing relationships with founders they like by saying "no".

If saying "no" is this complex, how can we do it in a way that doesn't make us look bad, allows us to be comfortable with ourselves, and helps us continue building deeper, meaningful relationships in the ecosystem?

Strategies for Saying "No" Effectively

Entrepreneurs: Saying No to Investor Influence

1. Be Clear and Honest:

- Direct Communication: Politely but firmly explain your position. For example, "I appreciate your suggestion, but after careful consideration, we believe our current strategy aligns better with our vision and goals."

- Rationale: Provide clear reasons for your decision. Investors appreciate transparency and reasoning. "We've analysed the market data and our team’s capabilities, and we feel this approach will yield the best results for our objectives."

2. Show Appreciation:

- Gratitude: Thank the investor for their input and support. "Thank you for your valuable insights; your perspective is always appreciated."

- Value Acknowledgment: Acknowledge the value of their advice even if you don’t follow it. "While we won’t be implementing this change right now, your feedback has given us some important points to consider for the future."

3. Offer Compromise or Alternatives:

- Alternative Solutions: If possible, suggest alternatives that could address the investor's concerns without compromising your vision. "We’re not ready to pivot our strategy entirely, but we are exploring ways to incorporate aspects of your suggestion to enhance our current plan."

4. Reinforce Common Goals:

- Shared Vision: Emphasise that both parties want the business to succeed. "Our ultimate goal is the same—ensuring the success and growth of the company. We believe sticking to our current plan is the best way to achieve that right now."

Investors: Saying No to Entrepreneurs

1. Be Direct but Respectful:

- Clarity: Clearly state your decision. "After careful consideration, we have decided not to move forward with an investment at this time."

- Respect: Maintain a tone of respect and professionalism. "We hold your project and efforts in high regard and appreciate the opportunity to review your business."

2. Provide Constructive Feedback:

- Reasoning: Offer specific, constructive feedback. "Our decision is based on factors such as market alignment and our current investment focus. We believe your business could benefit from addressing [specific areas]."

- Encouragement: Encourage them to continue their efforts. "Your concept has great potential, and we encourage you to keep pushing forward."

3. Keep the Door Open:

- Future Possibilities: Indicate willingness to reconsider in the future if circumstances change. "We would be open to revisiting this opportunity down the line, especially if you reach certain milestones or make specific adjustments."

- Ongoing Support: Offer to stay in touch and provide support in non-investment ways. "While we can’t invest right now, we’re happy to offer mentorship or connect you with other resources that could help your growth."

4. Express Appreciation:

- Gratitude: Thank them for considering you as a potential partner. "We appreciate the time and effort you put into your pitch and are honoured to have been considered for your investment."

Key Principles for Both Parties

- Authenticity: Be genuine in your communication. Authenticity fosters trust and respect.

- Empathy: Understand the other party’s perspective. Empathetic communication helps in maintaining a positive relationship.

- Confidence: Be confident in your decisions and communicate them with conviction.

By employing these strategies, both entrepreneurs and investors can say "no" in a manner that maintains respect, builds trust, and preserves the potential for future collaboration.