When they're just starting out, entrepreneurs want all the clients they can get - obtaining more connections means more assured revenue streams, gives a company the chance to build its reputation and can serve as an effective business builder. While organization owners go out of their way to impress these clients and ensure they're satisfied, this doesn't always work both ways.
Difficult clients make it complicated for any entrepreneur to conduct sales and ensure the company's reputation doesn't suffer. However, once an organization has grown from its initial client base and has firmly established itself, a business owner may be able to get by without revenue from these channels and get rid of its most demanding clients. Saying no defines you and your brand. It is important to identify the circumstances under whcih you will decide to let a client go.
When to Let a Client Go
For some entrepreneurs, it's hard to fathom voluntarily losing consistent sales. But there are some circumstances in which it just isn't worthwhile to keep working with someone. It's important for enterprise owners to know when it's a good idea to let a relationship fall by the wayside - if sales are low, a company's revenue base still isn't secure or an organization recently encountered unexpected expenses, it may not be the best time to let go of a client.
Certain situations may call for a business owner to let go of a client in order to preserve their business. Demanding clients whose complex projects take up a great deal of time may be wasting a company's resources especially if it takes employees hours to complete tasks requested. Other clients may simply not pay enough to be worthwhile to an enterprise's bottom line and entrepreneurs may feel as though they're wasting their time conducting business with this individual or company. In other instances, business owners may dislike providing the type of service a client requires and be looking to move away from completing these tasks.
Salvage the Relationship When Possible
Most entrepreneurs have a client they'd rather not work with, but many aren't sure of how to convince these companies to take their requests elsewhere. There are several strategies a business owner can employ when it's become evident the relationship is no longer working for their firm.