When To Drop a Client

Posted by Marcel Sim under People & Relationships,
April 30, 2008

About.com Entrepreneurs: Have you ever been fired by a client? It's painful, embarrassing and even a bit depressing when it happens. It can completely throw your confidence as an entrepreneur.

And yet, it may be the best thing in the world for both you and your client.

But why let it get to the point that they have to fire you? Don't you want to be the one in charge of the relationship? Don't you want to end it on your own terms, as much as possible?

While you may feel like you really have to hang on to the client, whether for your own cash flow or out of your sense of commitment, there are several signs that it may be time to terminate the client relationship.

In some cases, the problem really is with the client, and you should just fire them:

The client is a jerk.

Life's too short. Dealing with jerks is stressful, and if you're stressed, not only will it affect your mental and physical well-being -- it will also affect your ability to serve your other customers well. It will affect your relationships with employees and business partners. And if they're that difficult, odds are that they're not going to be a good referral source for you anyway -- they may even be a liability.

The client drains all your time.

You may have heard of the Pareto Principle, aka "The 80/20 rule". In this context, it's the idea that 80% of your profits come from 20% of your customers, while 20% of your profits come from 80% of your customers. Now I'm not suggesting you should drop your smallest clients, just the least profitable ones. Sometimes it's difficult clients, but sometimes it's the nicest ones -- the ones who can talk you into doing just a little bit more, then a little more, then more, and so on. Scope creep! Try to draw the line with your client, but if it continues, you may have to cut them off.

7 Signs It's Time to Drop a Client [About.com Entrepreneurs]

0 Comments

Comments

Add your own comments

What next?

Digg it

Save This Page

Subscribe to GetEntrepreneurial.com

Leave a comment

Next Article: Align Your Values With Goals »

Previous Article: Ouch! There's a Lot More Than Income Taxes »

Marcel Sim is a GE Network Expert. View Marcel Sim's profile or read more articles from Marcel Sim. Learn more about the GE Experts Network.

Have an expert opinion on issues entrepreneurs and small business owners face everyday? Join the GetEntrepreneurial.com Experts Network and share your expertise with the community!

The new GE Experts Network is inviting seasoned entrepreneurs and small business owners to come on board and contribute small business advice to our community of aspiring entrepreneurs. If you have an effective way of generating sales or you know how to use social networking to connect with your customers, join us in providing wider entrepreneurial content that would benefit small business owners worldwide.

Click Here to Learn More >>

Art Of Persuasion: How Do You Get People To Say Yes To You
During a Recession Is Not the Time To Cut The Training Budget
The High Cost of the Law of Unintended Consequences
20 Ways To A Successful Media Interview
First Impressions Count
10 Steps to a Great Support Team
5 Great Ways to Use Spreadsheets and Stay Organized!

This article was posted to the category: People & Relationships. Click here to read more articles in this category.

Ooh Local Activities » If you can find and do great, local stuff at home, why not do great local stuff that’s run by local people...

Necktie Reuse » New Startups: Narwhal Company is the inspirational idea of an everyday person that was looking to move away from the 9-5 lifestyle...

Dog’s Collar Comes with Tweets » "Puppy Tweets" dog’s collar allows dog owners to follow their dog on twitter. This plastic tag (introduced by Mattel), comes equipped with...

Friend of Trends » Trend Friend is an online (and smartphone accessible) gift idea database that allows users to quickly find the trendiest gifts based on...

Need more brand new promising business ideas and innovations around the world you wish you'd thought of? Visit CoolBusinessIdeas.com now!

Ever wanted to be the CEO of your very own Starbucks or Amazon.com? Fire your boss and be your own boss? Now you can, with BIZNESS! - the free biweekly business newsletter about new business ideas, opportunities and innovations from around the world. More than just new business trends, BIZNESS! helps the aspiring entrepreneur (you!) with small business advice, business tips, and entrepreneur resources and opportunities.

Subscribe for free now!