How to know when it's time to let a client go

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As a small business start-up, it can be hard, if not unimaginable, that there will be a day that you won't have to have slim pickings for clients.

One day, you will have the ideal client that you pictured on the day you decided to start your business. Until that day comes, you might have to decide, as a business owner, to let a client go a few times. 

There are a few reasons why you might feel the need to let a client go. None of them are solely based on the client's behavior nor your business' fault. Sometimes, you've just grown as a small business, and you need to let an ideal company take over your work for a client. 

Sometimes personalities don't mesh together. If you are fighting against a client's attitude, maybe you should consider if it would be better for both of you to part ways. Better yet, if a client isn't showing you respect as a business owner, it's time for a new client to take their place.

Consider multiple options and consult with your client before cutting the cord. It might have been a bad day, but if it's a recurring issue, then it's time to consider letting them go.

Here are a few reasons other small business owners or I have had to let clients go.

You're not receiving payments

How often do you have to remind your client about paying you? Not only is this unprofessional, but it's also just plain childish. If you have to tell or get on to a client about paying you, whether it's a repetitive or single payment, you should let them go.

You can't babysit your clients as they work with you. If they are ghosting or avoiding you, approach a lawyer about taking them to small claims court. Consulting a lawyer might be an added expense on your part, but knowing that you 'mean business' could kick your client in the pants that they need to treat you as a professional business owner.

Having this happen once is enough of a learning lesson for many small business owners. Consider putting in a clause about late fees into your contracts. Then make sure to put them on a blacklist in case of repeat offenses.

The client is unnecessarily difficult

We've all had this client: they want us to defy the laws of gravity and make everything how they imagine, rather than what is within your power. 

I understand wanting to bend over backward to make your client satisfied. Making regularly small changes is part of my job as a graphic designer. When a client wants 30 small, minute changes within 30 e-mails, you might feel like you wasted your time as a business owner. 

Things get missed when looking at the overall picture, but monopolizing a business owner's time is overkill.

If you are having this problem occur multiple times with a client or with various clients, think about adding a clause about edits or arrange meetings with your clients to address your edits in a timely and streamlined manner.

They are no longer your ideal client

When you've started your business, you might think that any business is good business. You're getting clients and happier for the income they provide. 

Once you've established your small business, it might be pertinent to narrow down your client base. You might have helped your friend's carpentry business at one point, but it no longer fits within your beautician clientele. 

Recognize what your ideal client is early on in your business as much as possible. You might go outside of that parameter a bit, in the beginning, to see what your client looks and acts like, but try to keep them in mind as you set out to grow your business.

Related Content:  CREATE: How to move your ideal client through the marketing strategy customer ladder

You've niched down on your services

You might still be in contact with your first client. Congratulations! If you've developed your small business, you might have outgrown some of your clients since you've started your business.

It's normal to expand and narrow down your services or niche as you continue developing your business. Some changes might happen within a few months, while others probably change over a few years.

Niching down your services is a sign of growth. Be professional when approaching clients that might be outside of your parameters as an ideal client. You might offer them a grace period to find another service to help them, similar to your past service, or even refer them to another company that will continue the same service.

No matter the reason, be gracious and thankful when letting this client go. Hopefully, they are proud of your growth as a small business owner and continue to be happy with your small business.

Related Content:   CREATE: How to define your target audience and niche for your small business start-up

The client is unresponsive to your work

I've had a few clients who are hard to contact. It's not that they don't want the work that you have completed for them, but they are unresponsive to provide edits or feedback for your work.

You might be in a service-industry business where ongoing clients are part of your package deal. They might not know enough to provide feedback when outsourcing their tasks to you. That being the case, educate your client about what you are doing and let them know enough of why you are doing what they are paying you to have a constructive conversation about your services.

As a business owner, you might encounter clients who are belittling your time and talent. 

Do not stand for this. 

You do not have to be in your industry long to know you have the talent to provide the services you give your client. They might look down on your services in multiple ways. Know your worth to receive constructive and helpful criticism for your work if it is warranted and done professionally.

The client does not respect you professionally

If a client has to look down on you or your services when they hire you, you do not need to work with them.

You might be new as a business owner, but you do not have to put up with callous, unprofessional owners. You are providing them a service, not becoming a servant. You deserve respect and need to see it shown when interacting with your clients.

Having a nasty or underhanded client is not your ideal client. They can showcase many qualities you wish for your clients, but they are not suitable if they feel the need to undermine your abilities or your person.

Your business has grown

Like when niching down your business, your small business might be growing faster than you know what to do with your time.

They may still be in your niche, but if you have too much on your plate, you might not be able to service your client the way you want. 

I would still focus on your service towards this client by offering referrals to other trusted companies that can fit their needs. You might be growing, but maybe someone else can be trusted with their business and can benefit from working with them more.

Remember to be gracious and helpful when working and referring outside of your business.

Demanding clients will make you pull your hair out on the best day. As a small business owner, it's essential that you try to be professional when dealing with clients. Your professionalism will be tested as business owners on various and multiple levels as you start your business.

Try to reconcile the problem as best you can. If it becomes a recurring instance, look into your policies or consider letting your client go graciously and professionally.

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