How to Identify and Let Go of Unproductive Clients for a Healthier Business

As business owners, service providers, or coaches, we often hear the mantra “The customer is always right.” But let’s be real—sometimes that’s just not true. Not every client is the right fit for your business, and in some cases, keeping a client can cost you more than it’s worth. Today, we’re going to talk about one of the toughest decisions you might face: when to fire a client. We’ll explore how to recognize when it’s time to cut your losses and how doing so can actually benefit your business in the long run. So, if you’ve ever felt drained by a client relationship, stick around—you’re not alone, and this episode is for you.

Rate, Review, & Follow on Apple Podcasts

If you’re loving my eCommerce Made Easy Podcast, I’d be thrilled if you could rate and review the show on Apple Podcasts. Your ratings and reviews help me reach more listeners and empower more people like you to thrive in the online business world.

Just click here to head over to Apple Podcasts, scroll down, give us a five-star rating, and share what you enjoyed most about the episode in the “Write a Review” section.

If you haven’t hit that follow button yet, now’s the perfect time! I have new episodes coming your way every week that you won’t want to miss. Hit the follow button and stay up to date with the eCommerce Made Easy Podcast! Follow Now!

Join entrepreneurs and online business owners just like you in my Free Facebook Group “Website & Tech Tips for Online Business Owners”
 
 Where we help break down the tech and hurdles Online Business Owners encounter!
 
Simply to go ecommercemadeeasypodcast.com/facebook/ and answer the membership questions so we know you are a real, warm-hearted, online business owner.

Chapters

• 0:01 Recognizing When to Fire a Client
• 11:13 Letting Go of Unproductive Clients

Transcript

Speaker 1: 0:01

As business owners, service providers or coaches, we often hear the mantra that the customer is always right. But let's be real. Sometimes it's just not true. Not every client is the right fit for your business and in some cases, keeping a client can cost you more than it's worth. Today, we're going to talk about one of the tough decisions you might need to face when running your business, and that's when to fire a client. Of the tough decisions you might need to face when running your business, and that's when to fire a client, we'll explore how to recognize when it's time to cut your losses and how to do so so that you can actually benefit your business in the long run. So if you've ever felt drained by a client relationship, stick around. You're not alone. In this episode, we're going to talk about strategies on how to deal with that gracefully and thrive in your business.

Speaker 1: 0:47

Welcome to the e-commerce made easy 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 the e-commerce building industry and even more than that in web development, I've seen a lot. I love breaking down the hard tech into easily understandable bits to help others be successful in their online business. Whether you're a seasoned e-commerce veteran or just starting out, you've come to the right place. So sit back, relax and let's dive into the world of e-commerce together. Welcome back to the show.

Speaker 1: 1:21

Today we're tackling a topic that might be uncomfortable, but it is necessary for the health and growth of your business and for you honestly knowing when to fire a client. It's easy to feel like you should hold on to every client, especially when you're newer in your business, but some relationships can actually hurt your business way more than it can help. So we're going to talk about the red flags to look for and when it's time to say goodbye to that client, and how firing a client can be the best decision you make for long term success. So there are some certain red flags in the client relationship that you need to be aware of. It's a great way to get a good pulse on the client and see if it is time to fire them. To get a good pulse on the client and see if it is time to fire them, because not every difficult client is worth firing, but if you start seeing some consistent issues and you start feeling stressed, you start feeling, you know, very overwhelmed by them. It might be time to reevaluate the relationship. I know in our over 22 years of running this business, I have only had to do this a very, very few times, maybe two or three. But when I did, we all felt a sense of relief myself and my team. It was the right decision because they were abusing the relationship.

Speaker 1: 2:35

So let's get into some of those red flags. So first off is consistently late payments. So if you have a client that you're constantly chasing payments on or dealing with excuses for missed invoices, it's a major red flag. Your time is valuable and your business can't thrive on unreliable cash flow. So if they're consistently missing late payments, then that is definitely a first red flag. Also, unrealistic demands. If a client constantly pushes boundaries with unreasonable requests, changes in scope of the project without extra compensation, or expects you to be available 24-7 when that is not the agreement, it can quickly lead to burnout.

Speaker 1: 3:18

We find that, you know, respect is a two-way relationship in all of our lives and this even includes our clients. So if they're not respecting you, it's hard for you to respect them back as well, and it's a two-way street and that causes a lot of stress and friction. So this is something that can really hurt your health and the health of your business. Also similarly along those lines is disrespect or negativity. If a client's rude, disrespectful or constantly critical in a way that undermines your confidence or professional relationship, it's a serious warning sign. No one deserves to work in a toxic environment and this behavior can erode your business's morale. This is something I've had to step in a few times, unfortunately, in our business as we had some clients that were being really rude to a staff member. We've only had like maybe one or two like this, but I had to step in, you know, for my employees to make sure they weren't in an abusive relationship. Nobody should be treated with disrespect or negativity. It doesn't matter if it's your client or not. They should not be treating you like that. As human beings, we should not be treating other people with disrespect. So that's definitely one of the major red flags. Also no boundaries. A client who repeatedly ignores the boundaries you've set whether that's communication outside of hours or unrealistic deadlines that can quickly become a drain on your time and energy and it kind of goes back to that disrespectfulness. It's very disrespectful not to honor the boundaries of the other person, and same goes for you, to the client as well. You know it's a two way street. We need to make sure we are respecting each other's boundaries. We are respecting each other's boundaries.

Speaker 1: 5:04

Recognizing these early signs can help you avoid falling into a cycle where a client takes more than they give, demanding your business profitability and your well-being. And if you're really looking for these red flags, many times a client might just show one of these red flags. Address it, address it right away. If you see this red flag, it's not only healthy for you, it's healthy for them and it honors the clients who do treat you well. Because if you let one client or two clients abuse the relationship, then that's, in some ways, not fair to those clients who honor your relationship and are very good to you. So step up and don't be afraid to set those boundaries if they're crossing one of these lines, before it becomes an actual, real problem. That's what I typically do in our business, although I will say in 22 years we've not had too much problems. But there are some times when people have a bad day too, or a bad couple weeks, and you just got to work with them on that. So I want you to next assess the impact on your business. So once you've seen a few red flags, it's important to step back and assess the impact this client is having on your business.

Speaker 1: 6:18

Ask yourself a few of these key questions. Are they costing you more time than they're worth? If you're spending excessive time managing the client's demands, chasing those invoices, it may be time you could be spending more profitable work with other clients who respect your boundaries. Also, is the relationship causing you stress or burnout? This is super important. This is talking about the longevity of your business.

Speaker 1: 6:44

If this particular client is causing you stress or burnout, then it's most likely time to let them go. It can take such a toll on your time. It can take a toll on your health mental and physical your whole team's morale if you have a team and even your passion for your business. No client's worth sacrificing your peace of mind or well-being. So I want you to keep that in mind as kind of a hard truth there. But no client is worth sacrificing your peace of mind or well-being.

Speaker 1: 7:13

And also, are they hurting your bottom line? And, honestly, this is probably the least important of these questions, because it's really the health of you and your business and the stress is the one I just talked about a little bit more important. But it could be they're hurting your bottom line too. Maybe they're not causing you too much stress. They're just not paying their bills on time. So it might be a little bit stressful there, but it's not like the stress of somebody being super disrespectful. So are they hurting your bottom line? Maybe they pay late all the time, maybe they require more attention than the hourly rate or the package rate that you're giving them and that's taking your rates to much lower than your standard and that can be hurt your bottom line in your business and your profitability and your viability. It's not necessarily. You know, we're not talking about profitability in the sense of becoming rich and careless with our money. We're talking about, you know, viability and profitability of your business and that's important for you and or your staff, if you have staff. So looking at these factors will make help you make an informed decision about whether or not to continue to work with this client and whether it's beneficial or not, or if they're costing your business more than they're worth. So the next way, the opportunity cost Firing a client isn't just about ending a bad relationship.

Speaker 1: 8:34

It's about making space for better opportunities as well. Every hour you spend managing a high maintenance client, one that's not a good fit is an hour you could be dedicating to more rewarding projects, more rewarding clients or expanding your business and just having some relief in your brain as well. And when you're bogged down by difficult clients, it's easy to lose sight of the bigger picture. So consider the opportunity costs. What could you be achieving if you weren't tied up in an unproductive or draining client relationship? Maybe they also feel the same way on their end, but they don't know how to sever the relationship and move on. So you may be doing them a great benefit as well. Maybe they also sense that you're not a good fit for them. So by freeing up your time and energy, you open the door to new clients who respect your boundaries and pay on time, and allow you to focus on what you do best and really help you focus in your zone of genius. And allow you to focus on what you do best and really help you focus in your zone of genius.

Speaker 1: 9:33

So there's some few ways that you can fire a client professionally. Because we obviously don't want to be rude about this either. We don't want to reciprocate and be rude. If they're a client, that is rude. We want to make sure we do this graciously and very professionally. So if you've decided it's time to fire a client, one of the ways you can do it is we can be direct but polite. Reach out to the client, explain that you will no longer be able to continue the working relationship. Keep it professional, avoid getting personal, avoid accusing them of anything. Usually that's not a great way to start the conversation.

Speaker 1: 10:13

You can always say something like after reviewing our current work arrangement arrangement, I've decided I'm unable to continue providing services. I recommend transitioning your project to another provider who may be a better fit. Could be as simple as that. It could be. You've decided to stop offering that service too, so you could just say you know we've stopped deciding to offer this service. We have a few people we could recommend you to, but we're no longer providing these services to our clients. Maybe it's a client service fit and they're like the last one that are using this service you used to do and it's time to get rid of that service. It's also nice for you to provide notice, so giving the client enough time to find a replacement if they would need to or finish any ongoing work is a great thing to do as a business owner. This helps maintain a professional reputation and shows you're committed to a smooth transition. It also helps some potential for people back to you. If this is very professional and if you're watching us on the YouTube video, you're going to get a few cameos of one of our cats in the office right now. One of them is behind me. Okay, back to the episode.

Speaker 1: 11:13

Also, you can recommend alternatives, so, if possible, recommend another provider or solution that may be a better fit for their needs. This is something that I've done a lot Well, not a lot, but the few times that we've needed to do this, this is something I've done and it's something I try to do every time. This shows you care about the business, even if you're not the right person to serve them, because, while a client might not be the right fit, you still may 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. And then, lastly, document everything. Keep a written record of your communication, including the reasons for ending the relationship. There are agreed upon terms for final work or payment and any other relevant details. This ensures to protect yourself legally and professionally. It's many times not something that is absolutely necessary. Hopefully you'll never get in a situation where you need it, but you should do it just in case. It's just a good business practice.

Speaker 1: 12:11

Inviting a client can feel very daunting, it can feel very disheartening, it can feel very disappointing. But when you handle it professionally and with respect, it can be a positive step for both of you, for both you and your client. So I highly encourage, if you know it's time to do this, take the steps and measures, do it gracefully and professionally to let that client go and move on so that you both can find a better working relationship. So how can firing a client actually benefit your business? Now, we touched on this some and it may feel counterintuitive to let go of a client, but often firing a client can have a far more positive effect on your business than keeping them on board. It lets you have more time for your ideal clients. It lets you focus in your zone genius.

Speaker 1: 13:00

When you free up this free time and mental energy you spent on a draining client, you can create space for the clients who align with your values and respect your boundaries and pay you fairly, your boundaries and pay you fairly, and they're going to get a better result from you when you're not drained by this client that is draining your time, your resources and your mental energy. It also helps reduce stress and burnout. So letting go of a toxic client relationship or any toxic relationship really in your life can really improve your mental health and bring your passion back to your work. I can't stress this enough. It can so create such stress and burnout if you keep a toxic client, and who knows? They may be causing them stress and burnout as well. It also gives you opportunity for better business growth.

Speaker 1: 13:46

When you have more time and more energy and focus, you can invest in your business in ways that align with your long-term goals, rather than staying stuck in a short-term challenges with clients that are not a great fit. So, ultimately, letting go of the wrong clients makes room for the right ones and positions your business for long-term success. It's something obviously not to take lightly, but sometimes it is unfortunately necessary for both of you. Like I was stressed a few times on this podcast episode, sometimes it's what they need too. They need to move on and need to 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 it just a handful of times, just a really few times. But sometimes it's necessary for the health and growth of your business. When you recognize the red flags and when you assess the impact and weigh the opportunity costs, you can make the tough decision to let go of a client who aren't serving your business and who you're probably not serving well either. So in doing so, you'll create space for better opportunities, reduce your stress and set yourself up for much better long-term success.

Speaker 1: 14:56

Thanks for joining us on this episode of the E-Commerce Made Easy podcast. If you found this episode helpful, please share it with a business friend and also rate us on Apple Podcasts. We love hearing your feedback, so feel free to email us at podcast at bcsengineeringcom, or leave us a comment on our website. You can also text us, finding the text carry button on our show notes as well. You can always find our show notes at ecommercemadeeasypodcastcom. And don't forget to subscribe so you never miss an episode. So we will see you next week.