When should you fire your client? A short case study.

Recently, I saw this post from someone on my social media feed:

Question: I want to fire my client but a great deal of recurring revenue depends on this one account. What should I do?

Here is their post:

I need to “FIRE” a Client, but as one of my top 3, it forces me to walk away from a great deal of recurring income every month, this puts me in a precarious situation.

Unfortunately, the individual is constantly in breach of contract. They sometimes use an intermediary to speak to me, who hasn’t been updated on the work I am doing with the client, and it creates more work for me. I am constantly repeating myself, or playing the diplomacy card. The Client also, after constant meetings and messaging, seems to have a huge barrier to learning. I’m not sure what causes that. They are also tardy to follow-up on information needed to develop core aspects of their brand, and are a micro-managing nightmare.

I’m at a loss for what to do here. I’ve never had to deal with an individual like this before, and it’s creating more stress than joy in the work that I do.

Answer: Diversify your client base. Next time, put clear goals, expectations & boundaries in place.

Step 1: Have a wider revenue base. Never put all your eggs in one basket.

When you sleep with an elephant it hurts when they roll over. A metaphor, for being too dependant on one client. And it has created a situation where time and again you feel compromised. The good news, you have more control than you might think. First, fire the client who compromises you! Secondly, create a book of clients so that if one were to leave, no matter who, you would still be alright instead of in a crises. Zig Ziglar’s way of saying this is: Have more wanting in than wanting out. Wouldn’t you rather have your income based on 10 clients than based on just 3? In your current situation your client has “control” The client dictates how business is conducted. If you have more clients “wanting in than wanting out” you have control. Clients work with you on your terms because you have the freedom to make choices based on your priorities.

Step 2: Take Pre-Emptive Action to Prevent These Scenarios.

Secondly, best time to deal with a problem is “before it happens” The best way to avoid the problem to begin with is with a “client commitment statement”.  A document that forms an agreement with you and your client on what is and isn’t appropriate conduct in the relationship.  The reason the 10 Commandments are written in stone is that we never debate if “thou shalt not kill” is a commandment.  Then, the only thing left to discuss is if we have or have not lived by the commandments. Having a discussion and a document that summarizes the responsibilities of the client and yourself goes a long way to resolve any issues before it happens.  Just to be clear, a “client commitment statement” is not the same as “the terms of agreement” about the services and deliverables you will supply.

Sometimes it is hard to remember that while they are the client, you/we are the ones that must be in control in order to best serve the client. It’s a paradox.  The clients pays a fee to put us in charge of them and their project.  That’s because we have the professional skills necessary to lead them to the desired outcome. When we let the client have “control” both them and their project are worse for it!

Your Thoughts As a B2B Business Owner?

What do you think? If you are someone with a professional practice in a service business, how do you manage relationships with your clients? What can you do differently so that you feel like you have more control? Send me an email with your thoughts at info@w5coaching.com or if you just can’t wait, call me at 604.687.5542