𝗧𝗼 𝗠𝗼𝘃𝗲 𝗙𝗼𝗿𝘄𝗮𝗿𝗱, 𝗙𝗶𝗿𝗲 𝗮 𝗖𝗹𝗶𝗲𝗻𝘁
“Toxic business relationships can suck the life out of your company and prevent growth.” – John White
To cross monkey bars, to move forward, first you have to let go.
The same is true with a bad client – you may feel like you have to hang on, but really, you’ll stagnate, fatigue, and eventually fall.
𝗪𝗵𝘆 𝘄𝗼𝘂𝗹𝗱 𝘆𝗼𝘂 𝗙𝗶𝗿𝗲 𝗮 𝗖𝗹𝗶𝗲𝗻𝘁?
Firing a client can be part of recognizing the worth of your business. You’ve clarified you growth plan, and a disruptive client can upset those goals as well as your team, attention, and resources.
You want to be sure to determine your limits and then that the client has clearly crossed the line. Here are some considerations.
· Acts morally or ethically challenging (from dishonest to harassing)
· Behaves in ways leading to disruption and even stress
· Ignores your expertise or argumentative instead of collaborative
· Overall, severely impacts your vision and plans
· Pays egregiously late
· Argues over fees already agreed
· Expects work well beyond scope
· Overall, makes you spend more time on billing than actual work
· Micromanages your efforts which disrupts process and costs time
· Acts indecisively (e.g. asking for more work rather than decide)
· Communicates poorly or refuse to deliver what's needed from them
· Overall, makes demands which can never be satisfied
If there is a problem, first directly lay out the challenge, the impact on your business and the consequences, such as increased costs or termination. Sometimes, people really don’t understand their impact and this approach may alleviate the situation.
Ultimately, if a client is more disruptive than valuable, then you need to act. The next post will cover how to fire a client.
𝗛𝗼𝘄 𝘁𝗼 𝗙𝗶𝗿𝗲 𝗮 𝗖𝗹𝗶𝗲𝗻𝘁 𝗦𝗺𝗼𝗼𝘁𝗵𝗹𝘆
Once you know firing the client is the right move, you want to treat them with respect and to be mindful of your reputation. Consider these steps:
· Review agreements to know the formal terms · Ensure the timing is right (e.g. not right before a major deliverable) · Make a call or video chat, then follow up with a formal email · Stay calm, rational, and respectful and find the right time (e.g. not before a board meeting) · Offer objective reasons (e.g. over the last 6 months, we’re actually losing money on your account) · Resist escalation if the client gets angry, instead focus on next steps · Suggest a replacement really helps (e.g. if you know a business that works better with that type of client) · Finish any outstanding work and leave transition notes if needed · Reach all parties soon to cover transition (don’t assume the main contact relayed the message precisely) These steps cover your bases and treat the outgoing client with professionalism while reaching your desired outcome.
𝗛𝗼𝘄 𝘁𝗼 𝗔𝘃𝗼𝗶𝗱 𝗧𝗵𝗶𝘀 𝗛𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝗔𝗴𝗮𝗶𝗻
Dealing with a toxic client and then having to fore them are both exhausting experiences. Now, channel your learning and emotions to improve your engagement process and to avoid a repeat.
· Qualify better. Screen out clients who will not be a good fit. For instance, if you have net 30 payment terms and they’re fighting for net 90, that’s a bad sign. Definitely check references.
· Set expectations. Ask tough questions around deliverables and record those responses. If a client can’t define success before starting, they may be more likely to challenge your progress later.
· Test them. If you will need responsiveness to complete a project, demand some basic information up front. Their response now reveals how it will be working together later.
· Revise pricing. If you offer a project rate or retainer, include examples of exceptions (such as fast turnaround or meetings outside normal business hours) where extra demands warrant extra fees.
· Review lead sources. If many bad clients originate from the same channels, you know what to do.
Also, beware of long-term promises without short-term commitment. Value flowing in one direction is a bad signal.
It’s incredibly hard to say no to a potential client. However, consider yourself 2-3 years in the future and realize the cost of time, money, and headaches with a disruptive client.
𝙒𝙝𝙚𝙣 𝙮𝙤𝙪 𝙛𝙤𝙘𝙪𝙨 𝙤𝙣 𝙫𝙖𝙡𝙪𝙚, 𝙮𝙤𝙪 𝒘𝒊𝒍𝒍 𝙛𝙞𝙣𝙙 𝙞𝙩 𝙛𝙖𝙨𝙩𝙚𝙧.
Photo by madsmith33 who can be found here: https://bit.ly/3ty9rIG