Team Forecast • November 6, 2017
When you are just starting out as a company, any client that comes your way is seen as a win and you’re probably willing to go above and beyond to facilitate their needs. Once you become more established though, you’ll start to notice that some clients are less desirable than others and sometimes it is necessary to make cuts in order to be successful.
While having a large number of clients can be a good thing, having effective clients is much more valuable. Clients that don’t generate much profit for your business are sometimes more trouble than they’re worth.
Read on to find out when a client is more hassle than they need to be and when you should consider making a cut.
You’re sure to have heard horror stories about clients who ask those working for them to go above and beyond. Whether it be calling at 11 pm with new ideas or treating you as though you are their dedicated employee, if you feel that a client is asking for things that you simply cannot provide, it’s probably time to make the cut. Remember, they got these ideas about how things should be done from somewhere, so don’t feel as though you have failed by not meeting their needs, it’s just that all places operate differently.
A little bit of healthy negotiation can be a good thing, but when you are dealing with a client that is pushy from the get-go and is always trying to force you down on a price, take that as a red flag that they may not be the kind of person that you want to work with. Debating over every single invoice is going to waste valuable time, so be sure to steer clear of this type of person.
Possibly one of the most annoying things you will come up against when dealing with undesirable clients is ones that are consistently slow to pay up what they owe you. This will disrupt your cash flow and will mean that you have to waste time chasing payments. Often, there is no malicious intent behind them not paying you, they are simply business owners that are busy or disorganised. You should have safety funds in place so that if a client doesn’t pay on time your business is still able to keep its head above water, but if you are dealing with someone that is consistently slow to pay, it’s time to move on.