Just say no: how to know when a client isn’t right for you

Ask any new business owner and they’ll tell you their biggest priority is customer acquisition. Without the security of a 9-5, it’s tempting to reach out to as many clients as possible. 

While this may help you build a portfolio, it’s a loss-making long-term strategy. As your business develops, you’ll identify your strengths and focus on these as your core services – which may not suit all your clients.

Why the wrong customers will slow growth

The wrong customers may not feel wrong in the beginning. But as time wears on, servicing the wrong client could hinder your growth. Consider:

Time versus value

You may have acquired them at a promotional rate. This could lead to less time spent on higher value clients.

Specialisms

A service you originally offered may no longer be sustainable. If you maintain this for one or two customers, it could end up costing more.

Their attitudes change

There could be new staff members, for example, who may have unrealistic expectations. This could put undue pressure on you to meet impractical targets. 

How do I know if the client isn’t right?

Some clients are red flags from the off. Look for signs such as:

·       Jumping on pricing straight away – if they try to cut you down, they won’t value your work.

·       Asking for too much – for example, unlimited free edits or unattainable goals.

Others will become apparent later on. For example, they might need to cut costs and reduce your workload. Or they may decide to shift focus to something outside your skillset. It would be remiss to offer them something you can’t achieve, and could end up costing you your reputation.

Alternatively, you might have just outgrown them. The bigger you get, the more and higher value customers you’ll acquire. It’s about finding that confidence to part ways. 

How to say no the professional way

First things first – do not let things turn sour. If you’re losing sleep over toxic relationships, you’re more likely to burn bridges. Ask yourself if the client is worth your time before you get to this stage.

Assure them it’s the right thing for them

Be honest – say your business goals no longer align and you feel they could do better elsewhere. You could even offer them a contact as a gesture of goodwill.

Stay in touch

Keep connected on LinkedIn; leave testimonials; send Christmas cards. A good business relationship lasts way beyond the transactions.

Remember – it’s not always a bad thing

Letting them go might be the best thing that happened to them. You could connect them with a new supplier, and you’ll benefit from more time to pursue new goals.

A new opportunity always awaits

Finally, don’t be disheartened. There are always new opportunities so long as you stay proactive. Use this as a valuable lesson and focus on reinvesting that value into your customers.

Need help determining your customer value? Contact The Growth Guys today.