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| 1.4. Firing Bad Clients |
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Written by: KATHYE KOCHANOWSKI |
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First, let’s consider the fact that all clients are NOT good clients. It’s near to impossible to
find a business in which every single client is the perfect client providing all necessary
information in a timely manner, always being prompt for appointments, never needing any
special assistance, always paying on time, etc. |
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The reality is, for most businesses it’s a 40/60 ratio. The top 40% of your
clients make it possible for you to “manage” the bottom 60% of your clients. |
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Put another way, the revenue made from your top 40% of clients through simple, painless
transactions that don’t require any extra time, makes up for the other 60% of your clients that
place huge demands on your time and effort. It’s time to clean house and “fire” some clients! |
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If you are like most, fear of not being able to replace those client that you fire keeps you from
doing it. However, consider the client that always turns a 5 minute question into a half an
hour conversation. The one that needs you to hold their hand through every step they take.
Yet, at the same time, this client is the smallest source of revenue you have because you
are charging them on a flat fee basis. |
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This is the perfect example of a client that needs to be fired. It can be a scary prospect, but
you may be surprised just how much of a positive impact getting rid of just one draining
client can have on you and your business. |
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So what about the lost revenue from the fired client(s)? Compare it against the time you’ve
recaptured by making that bold move. This extra time can now be refocused on bringing in
new, quality clients. If you’ve already taken the time to define who your ideal client is, then
you are well on your way. (If you haven’t yet done that, then please see Defining Your Ideal
Client for guidance.) |
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Once you have perfected your ideal client, market directly to him/her. If you’ve narrowed
your definition enough, you will find you are focusing on a specific niche in the market.
When you begin to have several of those same types of clients, you will become known
as the go-to firm for that specific group or type of business. |
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At that point, you will be able to charge more for your services because people will
appreciate your expertise and understanding of their specific business. Marketing and sales
will become easier as you focus on your preferred niche group, and growth will result. |
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| Are you ready to fire your first client? |
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| Kathye Kochanowski |
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A degree in Economics with a focus in International Studies from Lawrence
University. She is a Marketing and Sales consultant for Clear Biz, focusing
on their expansion into the United States. |
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