JUST. SAY. NO! How To Know When A Client Isn’t Right For You
Paul Fernandez
Award-winning Growth Marketer | Co-founder of The Growth Guys | Speaker | Start-Up Advisor | Author-in-writing | Helping Startups & SME's Grow Better, then Bigger
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.
Founder of Hop Training ? Empowering Teams to be Present ? Present Teams Deliver Great Guest Experiences
3 年Great article Paul, it takes up so much headspace dealing with it all!
Founder of Steel River Drinks. A Teesside based company that prides itself on creating life affirming, exciting gins that make people happy and enable us to give back to our local community.
4 年Good read Paul. Amazing how you find it easier to say No as you grow in business and as a person.
Enabling high performance, potential, leadership, & joy at Arup!
4 年This is very true, I have experienced each one of these points as I've grown over the years. Really great article Paul Fernandez, well done and thanks!
Award Winning Changemaker | Anti-Trafficking & Modern Slavery Activist | Empowering Speaker & Host | Christian | Living Wage Advocate for Cleaning. *Passionate About Helping Businesses Positively Impact the World.*
4 年Paul Fernandez?I wish this was a lesson I had learnt sooner in my business. Well said!
Founder & Clinical Director Uniskin / Reverse ageing and extend health span using genetics, aesthetics and balancing hormones/Researcher / Best Selling Author/ Finalist Business Book Awards/ Global Public Speaker/KPI2021
4 年Very true especially the part where it starts off great but then you start to realise your blood is being sucked dry and you have no more energy anymore. You just can't meet their demands as time passes . I read a brilliant book on Traction (Gino Wickman) and tested his advice. One of his suggested maxims for a business is "Thou shalt not be a weeny". He talks about getting rid of clients or staff and that the discomfort will only last 72 hours. That spurred me on to say no more often during client consultations and I also used that to change my staffing and business module. 72 Hours later the pain is over and the load lighter. I now say No more often and attract the right staff and clients. Great article - enjoyed it :)