Episode Transcript
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Speaker 1 (00:01):
As business owners,
service providers or coaches, we
often hear the mantra that thecustomer is always right.
But let's be real.
Sometimes it's just not true.
Not every client is the rightfit for your business and in
some cases, keeping a client cancost you more than it's worth.
Today, we're going to talkabout one of the tough decisions
you might need to face whenrunning your business, and
(00:22):
that's when to fire a client.
Of the tough decisions youmight need to face when running
your business, and that's whento fire a client, we'll explore
how to recognize when it's timeto cut your losses and how to do
so so that you can actuallybenefit your business in the
long run.
So if you've ever felt drainedby a client relationship, stick
around.
You're not alone.
In this episode, we're going totalk about strategies on how to
deal with that gracefully andthrive in your business.
(00:47):
Welcome to the e-commerce madeeasy podcast.
I'm your host, keri Saunders.
When we started this business,all I had was a couch, a laptop
and a nine month old.
My main goal to help others.
Now, with over 20 years in thee-commerce building industry and
even more than that in webdevelopment, I've seen a lot.
I love breaking down the hardtech into easily understandable
bits to help others besuccessful in their online
(01:09):
business.
Whether you're a seasonede-commerce veteran or just
starting out, you've come to theright place.
So sit back, relax and let'sdive into the world of
e-commerce together.
Welcome back to the show.
Today we're tackling a topicthat might be uncomfortable, but
it is necessary for the healthand growth of your business and
for you honestly knowing when tofire a client.
(01:29):
It's easy to feel like youshould hold on to every client,
especially when you're newer inyour business, but some
relationships can actually hurtyour business way more than it
can help.
So we're going to talk aboutthe red flags to look for and
when it's time to say goodbye tothat client, and how firing a
client can be the best decisionyou make for long term success.
(01:49):
So there are some certain redflags in the client relationship
that you need to be aware of.
It's a great way to get a goodpulse on the client and see if
it is time to fire them.
To get a good pulse on theclient and see if it is time to
fire them, because not everydifficult client is worth firing
, but if you start seeing someconsistent issues and you start
(02:11):
feeling stressed, you startfeeling, you know, very
overwhelmed by them.
It might be time to reevaluatethe relationship.
I know in our over 22 years ofrunning this business, I have
only had to do this a very, veryfew times, maybe two or three.
But when I did, we all felt asense of relief myself and my
(02:31):
team.
It was the right decisionbecause they were abusing the
relationship.
So let's get into some of thosered flags.
So first off is consistentlylate payments.
So if you have a client thatyou're constantly chasing
payments on or dealing withexcuses for missed invoices,
it's a major red flag.
Your time is valuable and yourbusiness can't thrive on
(02:54):
unreliable cash flow.
So if they're consistentlymissing late payments, then that
is definitely a first red flag.
Also, unrealistic demands.
If a client constantly pushesboundaries with unreasonable
requests, changes in scope ofthe project without extra
compensation, or expects you tobe available 24-7 when that is
not the agreement, it canquickly lead to burnout.
(03:18):
We find that, you know, respectis a two-way relationship in all
of our lives and this evenincludes our clients.
So if they're not respectingyou, it's hard for you to
respect them back as well, andit's a two-way street and that
causes a lot of stress andfriction.
So this is something that canreally hurt your health and the
health of your business.
(03:39):
Also similarly along thoselines is disrespect or
negativity.
If a client's rude,disrespectful or constantly
critical in a way thatundermines your confidence or
professional relationship, it'sa serious warning sign.
No one deserves to work in atoxic environment and this
behavior can erode yourbusiness's morale.
(03:59):
This is something I've had tostep in a few times,
unfortunately, in our businessas we had some clients that were
being really rude to a staffmember.
We've only had like maybe oneor two like this, but I had to
step in, you know, for myemployees to make sure they
weren't in an abusiverelationship.
Nobody should be treated withdisrespect or negativity.
(04:20):
It doesn't matter if it's yourclient or not.
They should not be treating youlike that.
As human beings, we should notbe treating other people with
disrespect.
So that's definitely one of themajor red flags.
Also no boundaries.
A client who repeatedly ignoresthe boundaries you've set
whether that's communicationoutside of hours or unrealistic
(04:40):
deadlines that can quicklybecome a drain on your time and
energy and it kind of goes backto that disrespectfulness.
It's very disrespectful not tohonor the boundaries of the
other person, and same goes foryou, to the client as well.
You know it's a two way street.
We need to make sure we arerespecting each other's
boundaries.
We are respecting each other'sboundaries.
(05:04):
Recognizing these early signscan help you avoid falling into
a cycle where a client takesmore than they give, demanding
your business profitability andyour well-being.
And if you're really lookingfor these red flags, many times
a client might just show one ofthese red flags.
Address it, address it rightaway.
If you see this red flag, it'snot only healthy for you, it's
(05:24):
healthy for them and it honorsthe clients who do treat you
well.
Because if you let one clientor two clients abuse the
relationship, then that's, insome ways, not fair to those
clients who honor yourrelationship and are very good
to you.
So step up and don't be afraidto set those boundaries if
(05:47):
they're crossing one of theselines, before it becomes an
actual, real problem.
That's what I typically do inour business, although I will
say in 22 years we've not hadtoo much problems.
But there are some times whenpeople have a bad day too, or a
bad couple weeks, and you justgot to work with them on that.
So I want you to next assessthe impact on your business.
(06:10):
So once you've seen a few redflags, it's important to step
back and assess the impact thisclient is having on your
business.
Ask yourself a few of these keyquestions.
Are they costing you more timethan they're worth?
If you're spending excessivetime managing the client's
demands, chasing those invoices,it may be time you could be
(06:31):
spending more profitable workwith other clients who respect
your boundaries.
Also, is the relationshipcausing you stress or burnout?
This is super important.
This is talking about thelongevity of your business.
If this particular client iscausing you stress or burnout,
then it's most likely time tolet them go.
It can take such a toll on yourtime.
(06:52):
It can take a toll on yourhealth mental and physical your
whole team's morale if you havea team and even your passion for
your business.
No client's worth sacrificingyour peace of mind or well-being
.
So I want you to keep that inmind as kind of a hard truth
there.
But no client is worthsacrificing your peace of mind
or well-being.
(07:13):
And also, are they hurting yourbottom line?
And, honestly, this is probablythe least important of these
questions, because it's reallythe health of you and your
business and the stress is theone I just talked about a little
bit more important.
But it could be they're hurtingyour bottom line too.
Maybe they're not causing youtoo much stress.
They're just not paying theirbills on time.
(07:34):
So it might be a little bitstressful there, but it's not
like the stress of somebodybeing super disrespectful.
So are they hurting your bottomline?
Maybe they pay late all thetime, maybe they require more
attention than the hourly rateor the package rate that you're
giving them and that's takingyour rates to much lower than
your standard and that can behurt your bottom line in your
(07:57):
business and your profitabilityand your viability.
It's not necessarily.
You know, we're not talkingabout profitability in the sense
of becoming rich and carelesswith our money.
We're talking about, you know,viability and profitability of
your business and that'simportant for you and or your
staff, if you have staff.
So looking at these factorswill make help you make an
(08:19):
informed decision about whetheror not to continue to work with
this client and whether it'sbeneficial or not, or if they're
costing your business more thanthey're worth.
So the next way, theopportunity cost Firing a client
isn't just about ending a badrelationship.
It's about making space forbetter opportunities as well.
Every hour you spend managing ahigh maintenance client, one
(08:42):
that's not a good fit is an houryou could be dedicating to more
rewarding projects, morerewarding clients or expanding
your business and just havingsome relief in your brain as
well.
And when you're bogged down bydifficult clients, it's easy to
lose sight of the bigger picture.
So consider the opportunitycosts.
What could you be achieving ifyou weren't tied up in an
(09:05):
unproductive or draining clientrelationship?
Maybe they also feel the sameway on their end, but they don't
know how to sever therelationship and move on.
So you may be doing them agreat benefit as well.
Maybe they also sense thatyou're not a good fit for them.
So by freeing up your time andenergy, you open the door to new
clients who respect yourboundaries and pay on time, and
(09:26):
allow you to focus on what youdo best and really help you
focus in your zone of genius.
And allow you to focus on whatyou do best and really help you
focus in your zone of genius.
So there's some few ways thatyou can fire a client
professionally.
Because we obviously don't wantto be rude about this either.
We don't want to reciprocateand be rude.
If they're a client, that isrude.
We want to make sure we do thisgraciously and very
professionally.
(09:46):
So if you've decided it's timeto fire a client, one of the
ways you can do it is we can bedirect but polite.
Reach out to the client,explain that you will no longer
be able to continue the workingrelationship.
Keep it professional, avoidgetting personal, avoid accusing
them of anything.
Usually that's not a great wayto start the conversation.
(10:13):
You can always say somethinglike after reviewing our current
work arrangement arrangement,I've decided I'm unable to
continue providing services.
I recommend transitioning yourproject to another provider who
may be a better fit.
Could be as simple as that.
It could be.
You've decided to stop offeringthat service too, so you could
just say you know we've stoppeddeciding to offer this service.
We have a few people we couldrecommend you to, but we're no
longer providing these servicesto our clients.
Maybe it's a client service fitand they're like the last one
(10:37):
that are using this service youused to do and it's time to get
rid of that service.
It's also nice for you toprovide notice, so giving the
client enough time to find areplacement if they would need
to or finish any ongoing work isa great thing to do as a
business owner.
This helps maintain aprofessional reputation and
shows you're committed to asmooth transition.
It also helps some potentialfor people back to you.
(11:00):
If this is very professionaland if you're watching us on the
YouTube video, you're going toget a few cameos of one of our
cats in the office right now.
One of them is behind me.
Okay, back to the episode.
Also, you can recommendalternatives, so, if possible,
recommend another provider orsolution that may be a better
fit for their needs.
This is something that I'vedone a lot Well, not a lot, but
(11:23):
the few times that we've neededto do this, this is something
I've done and it's something Itry to do every time.
This shows you care about thebusiness, even if you're not the
right person to serve them,because, while a client might
not be the right fit, you stillmay care about that business.
I know that we have, and I do,but you know that they need to
go somewhere else.
It's just not a great fit.
(11:44):
And then, lastly, documenteverything.
Keep a written record of yourcommunication, including the
reasons for ending therelationship.
There are agreed upon terms forfinal work or payment and any
other relevant details.
This ensures to protectyourself legally and
professionally.
It's many times not somethingthat is absolutely necessary.
Hopefully you'll never get in asituation where you need it,
(12:06):
but you should do it just incase.
It's just a good businesspractice.
Inviting a client can feel verydaunting, it can feel very
disheartening, it can feel verydisappointing.
But when you handle itprofessionally and with respect,
it can be a positive step forboth of you, for both you and
your client.
So I highly encourage, if youknow it's time to do this, take
(12:28):
the steps and measures, do itgracefully and professionally to
let that client go and move onso that you both can find a
better working relationship.
So how can firing a clientactually benefit your business?
Now, we touched on this someand it may feel counterintuitive
to let go of a client, butoften firing a client can have a
(12:49):
far more positive effect onyour business than keeping them
on board.
It lets you have more time foryour ideal clients.
It lets you focus in your zonegenius.
When you free up this free timeand mental energy you spent on a
draining client, you can createspace for the clients who align
with your values and respectyour boundaries and pay you
(13:09):
fairly, your boundaries and payyou fairly, and they're going to
get a better result from youwhen you're not drained by this
client that is draining yourtime, your resources and your
mental energy.
It also helps reduce stress andburnout.
So letting go of a toxic clientrelationship or any toxic
relationship really in your lifecan really improve your mental
health and bring your passionback to your work.
(13:30):
I can't stress this enough.
It can so create such stressand burnout if you keep a toxic
client, and who knows?
They may be causing them stressand burnout as well.
It also gives you opportunityfor better business growth.
When you have more time and moreenergy and focus, you can
invest in your business in waysthat align with your long-term
(13:52):
goals, rather than staying stuckin a short-term challenges with
clients that are not a greatfit.
So, ultimately, letting go ofthe wrong clients makes room for
the right ones and positionsyour business for long-term
success.
It's something obviously not totake lightly, but sometimes it
is unfortunately necessary forboth of you.
(14:13):
Like I was stressed a few timeson this podcast episode,
sometimes it's what they needtoo.
They need to move on and needto find somebody else that's a
better fit for them as well.
So firing clients is never easy.
Like I said, we've had to do itjust a handful of times, just a
really few times.
But sometimes it's necessaryfor the health and growth of
(14:34):
your business.
When you recognize the redflags and when you assess the
impact and weigh the opportunitycosts, you can make the tough
decision to let go of a clientwho aren't serving your business
and who you're probably notserving well either.
So in doing so, you'll createspace for better opportunities,
reduce your stress and setyourself up for much better
long-term success.
(14:56):
Thanks for joining us on thisepisode of the E-Commerce Made
Easy podcast.
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(15:20):
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