Business Credit Cards

By Christina Laun

Clients are the bread and butter of any business. Without them, your business simply wouldn’t exist. So it can be hard for many business owners to think about sending clients away, especially those just starting out. But it’s inevitable that you’ll have a client that taxes both your resources and your personal sanity to the point where it becomes necessary to let them go. Don’t worry, you’re not crazy to send business away. Sometimes the best thing you can do for your business is to cut a client loose. It’s not always easy, but it will leave you with more time to concentrate on clients that are easier to deal with and more profitable.

Types of Bad Clients

Bad clients come in many flavors, but these are some of the most common offenders. If you’ve got one of these on your client list, consider showing them the door.

• The Complainer: Don’t expect to ever do anything right for this type of client. Even if you deliver under budget and sooner than expected, they will still be disappointed for a reason they just can’t seem to communicate to you.
• The Something for Nothing: These types of clients ignore the old adage and try to get as much out of you as they can for as little as possible. Often, they’ll get your initial estimate and expect the cost not to increase when they increase the size or duration of the project or keep adding on “little” things.
• The Time Waster: Expect your time to mean little to these kinds of clients. They’ll be hard to get in meetings and when you finally get ahold of them, they won’t listen to what you’re saying. They’ll run you around with changes, pointless meetings, and time wasted waiting, and then complain how much they’re paying you.
• The Aggressor: This type of client is the hardest to work with and the scariest to get rid of. They are often verbally abusive and threaten to sue for the slightest reason. Be especially careful when unloading these as they have particularly short fuses.
• The Know-It-All: The know-it-all is sure that he or she knows how to do your job just as well as you do because they have a basic familiarity with the programs you use or read a book on the subject. What they don’t realize is that your experience and expert knowledge are really what they’re paying for. Nonetheless, they’ll question your every move and drive you crazy.
• The Boundary Crosser: This type of client will ask you for your home phone numbers “for emergencies” and then call you on weekends and after hours just to check in. This kind of client taxes your personal life heavily.

How to Fire Them

Whether you have a client that fits one of these profiles or an entirely different breed altogether, when the time comes to part ways, do you know how you’ll go about doing it? Here are some tips on making the process as painless as possible.

• Do it in writing. This will help to prevent misunderstandings and raised emotions. It will also give you a written record of your interactions with the client if you should need it to back you up later.
• Make sure you get paid prior to terminating your relationship. You’re asking for trouble by firing a client who still hasn’t paid you, even though sometimes this may be the reason that you are firing them. As illegal and unprofessional as it may be, a jilted client may withhold payment for your services as retribution for letting them go.
• Fulfill any remaining contractual obligations to your clients if it is at all possible or you may find yourself subject to the consequences of breaking that contract. If this is the case, you might want to bring in a lawyer to tell you your best options. Remember, you want to do the work you’ve promised to do, as your reputation is still at stake.
• When letting clients go, be honest but not hostile or offensive. If you can’t think of any way to put your reasons for parting ways nicely, then tell them your business is changing directions or that you just don’t think you can complete their project in the manner or timeframe they hoped.
• Don’t just leave your clients high and dry after you’ve let them go. They may not have treated you with respect, but that doesn’t mean you should return the favor. Recommend another business, preferably a competitor, to take the project instead.
• If nothing else seems to work, jack up your prices. Either they’ll part ways with you themselves or the pain of working for them will be lessened by your increased paycheck.

While it might be difficult both mentally and financially to fire a client, in the long run you’ll be doing your business and yourself a favor. You shouldn’t let go of every client that is difficult, but if you’re hitting the brink with a client, it’s time to make a change. In reality, many clients that take up hours of your time are costing you more than they’re bringing in. By cutting these clients loose, you’ll have more time and energy to concentrate on bringing in new, more profitable business, and that’s really what business is all about.