
Benjamin
๐ง๐ผ ๐ ๐ผ๐๐ฒ ๐๐ผ๐ฟ๐๐ฎ๐ฟ๐ฑ, ๐๐ถ๐ฟ๐ฒ ๐ฎ ๐๐น๐ถ๐ฒ๐ป๐
Updated: Aug 21, 2021
โToxic business relationships can suck the life out of your company and prevent growth.โ โ John White
To cross monkey bars, to move forward, first you have to let go.
The same is true with a bad client โ you may feel like you have to hang on, but really, youโll stagnate, fatigue, and eventually fall.
๐ช๐ต๐ ๐๐ผ๐๐น๐ฑ ๐๐ผ๐ ๐๐ถ๐ฟ๐ฒ ๐ฎ ๐๐น๐ถ๐ฒ๐ป๐?
Firing a client can be part of recognizing the worth of your business. Youโve 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.
๐ฉ๐ฎ๐น๐๐ฒ๐
ยท Acts morally or ethically challenging (from dishonest to harassing)
ยท Behaves in ways leading to disruption and even stress
ยท Ignores your expertise or argumentative instead of collaborative
ยท Overall, severely impacts your vision and plans
๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น
ยท Pays egregiously late
ยท Argues over fees already agreed
ยท Expects work well beyond scope
ยท Overall, makes you spend more time on billing than actual work
๐๐๐๐ถ๐ป๐ฒ๐๐
ยท Micromanages your efforts which disrupts process and costs time
ยท Acts indecisively (e.g. asking for more work rather than decide)
ยท Communicates poorly or refuse to deliver what's needed from them
ยท 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 donโt 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.
๐๐ผ๐ ๐๐ผ ๐๐ถ๐ฟ๐ฒ ๐ฎ ๐๐น๐ถ๐ฒ๐ป๐ ๐ฆ๐บ๐ผ๐ผ๐๐ต๐น๐
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:
ยท Review agreements to know the formal terms ยท Ensure the timing is right (e.g. not right before a major deliverable) ยท Make a call or video chat, then follow up with a formal email ยท Stay calm, rational, and respectful and find the right time (e.g. not before a board meeting) ยท Offer objective reasons (e.g. over the last 6 months, weโre actually losing money on your account) ยท Resist escalation if the client gets angry, instead focus on next steps ยท Suggest a replacement really helps (e.g. if you know a business that works better with that type of client) ยท Finish any outstanding work and leave transition notes if needed ยท Reach all parties soon to cover transition (donโt 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.
๐๐ผ๐ ๐๐ผ ๐๐๐ผ๐ถ๐ฑ ๐ง๐ต๐ถ๐ ๐๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐ถ๐ป๐ด ๐๐ด๐ฎ๐ถ๐ป
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.
ยท Qualify better. Screen out clients who will not be a good fit. For instance, if you have net 30 payment terms and theyโre fighting for net 90, thatโs a bad sign. Definitely check references.
ยท Set expectations. Ask tough questions around deliverables and record those responses. If a client canโt define success before starting, they may be more likely to challenge your progress later.
ยท 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.
ยท 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.
ยท 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.
Itโs incredibly hard to let go of a client. However, consider the future and realize the cost of time, money, and headaches with a disruptive client.
๐๐๐๐ฃ ๐ฎ๐ค๐ช ๐๐ค๐๐ช๐จ ๐ค๐ฃ ๐ซ๐๐ก๐ช๐, ๐ฎ๐ค๐ช ๐๐๐๐ ๐๐๐ฃ๐ ๐๐ฉ ๐๐๐จ๐ฉ๐๐ง.
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