How and When to Fire a Client

If you've ever owned a business, you know the elation that comes with each new client who puts their trust in you. In the beginning, these new relationships are a sign of hope that you're on the right path and that you really can do this thing you've set out to do. The longer you're in business, the more clearly you see that not all clients are created equal. Some clients will be easy to work with and willing to pay what you believe your work or product is worth. Other clients will be difficult to work with and may complain about your prices. Eventually, you'll learn that to bring on more wonderful clients, you need to end your relationship with the difficult ones. Breaking up isn't easy, but it's usually a gateway to business growth.

When to Fire a Client

Maintaining client relationships can feel like a complicated dance. You depend on your existing clients to grow a strong, healthy business, but you could make more money if you had higher-paying clients. It's easy and common to feel paralyzed in this position. There are two types of clients you may find yourself having to let go of. 

The first we'll call the Squeaky Wheel clients that require a lot of your time and energy (in business, time is money) or are even difficult to deal with. Squeaky Wheel clients can halt your business growth if you let them, and they can drive away valuable team members. 

The second type, we'll call the Low Budget clients, are often harder to part with. They may be kind and easy to work with, but they can't afford to pay your rate. In the beginning, many business owners fill their days serving Low Budget clients until they realize that it's inefficient to do business on such a small scale. Determining when or if to let go of your Low Budget clients is a personal decision. 

How to Fire a Client

Now to the part we all dread. Firing a client is just hard, plain and simple. But a few things can make the experience go smoothly in the long run. One easy way to drop clients is to increase their rates beyond what they're willing to pay. Hopefully, these clients will self-select out before you have to fire them. However, if you plan on having an honest and open break-up conversation with a client, remember that your reputation is paramount as a business owner. Make sure that you maintain your cool while being honest and direct.

As Fix-It Accounting has grown, we've taken on much bigger clients. But that doesn't mean we've let go of everyone else. We will always serve small businesses no matter how big we grow. Firing clients isn't about moving on up and forgetting about the little guys. It's a tool to help you cultivate a clientele that believes in your mission, is kind and easy to work with, and will help your business grow. Contact our office to learn more about how our team can help you grow your business.