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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
Fire Bad Clients to Increase Profits

Are your profits being hindered by deadbeat clients?

Examples of client bad-habits you should consider cutting loose:

• Non-paying or Low-profit Clients
If they’re not paying you for your services, then they are obviously not worth working for. There is, of course, an exception to this rule. If a client is generally appreciative and can’t afford their entire bill, make payment arrangements that work for both of you. If they still won’t pay, even after you’ve given them a break, then drop them and consider suing them for the unpaid balance.

You also might want to determine a minimum profit you’re willing to make and cut the clients who don’t meet the quota. If they have potential for growth, great! Consider hanging on. But if things have just gone nowhere for a long time, you may consider putting that effort into the clients who profit you most.

• Clients Who Require Justification
The clients that you always have to justify your prices or time to are just not worth having around. We see that sometimes at the law firm because many of our clients are billed at an hourly rate. Occasionally a client comes along who disputes the attorney’s time on their case. These are the sort of clients who want your services, but aren’t appreciative enough to compensate your time.

• Time Wasting Clients
Clients who are unprepared for meetings, aren’t sure what they want from your business, or are just unwilling to heed your advice are not worth the headache. You’re the expert in your industry and they are not, otherwise they wouldn’t have come to you in the first place. If they aren’t willing to hear what you have to say now, they likely never will be. It will be a constant battle and stress. No one needs that hanging over their heads or their business.

In the end, it all comes down to just how much you are willing (or able) to put up with. However, if you’re business is struggling, regardless of how nice you are, I strongly urge you to examine your clientele. Some of them may be part of the problem.


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By Michelle Cramer
Tuesday, June 28th, 2016 @ 12:00 AM CDT

Money, Operations |