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Sometimes, it’s best to fire clients

That’s right. Sometimes, not all business is good business. There will be moments while running your business when you’ll need to lose a client or two. The truth is that more work doesn’t always mean more profit. And your business could be far better off by freeing up resources.

 

So, when are the moments when you know that it’s time for a client to pack their metaphorical bags?

 

The times when your infrastructure can’t handle the work

 

As far as business problems go, this is possibly one of the best you can have. It’s far better for you to have too much work than too little. But you could be negatively impacting your business if you take on more work than your current infrastructure allows for. Yes, it’s positive that you might want to expand and there is the demand to allow that. But you need to ensure you make the necessary changes. After all, you may have enough work coming in right now to allow for more equipment and staff members.  You need to be sure that you have sufficient equipment, stock, employees and skills for the task. But what happens when that project ends? You may just have hired staff members who you can’t afford to keep around. And you may have applied for machinery asset finance to pay for new equipment, only to find you no longer need it.

 

The times when you aren’t quite sure what you’re doing

 

Sometimes, it can be a good thing to take on a new and unfamiliar challenge. This can expand your skills and increase the services you offer. However, you need to be cautious about taking on too much. You need to be sure that you’re able to provide the services that your clients are calling for. It might very well be true that you’d waste too many resources by taking on work your team doesn’t quite know how to do. It really doesn’t make business sense to over-exert yourself in areas which you aren’t familiar with and aren’t able to do profitably.

 

But if doing this work can bring about meaningful change and investment to your business over the long-term, it might be a good idea to take it on. Sometimes, it’s just a case of investing in some new equipment or staff. You could even consider renting equipment for the short term or using a contractor to complete a task.

 

The times when all your resources are busy with small tasks and clients

 

This is especially true for small businesses. Eager to work on all paying jobs, businesses can sometimes take on too much work at a lower cost than they should have. You might need the work at the time but when this continues for months or even years, this could really negatively impact your business. Sometimes it’s important that you hold out for better-paying clients.

 

The times when you really do need to fire that client

 

It might seem impossible to think about letting go of a paying client. But sometimes they are really just not worth the trouble. You only have so many resources in terms of time, staff and equipment and you need to make sure they’re optimally used. The more efficiently you use those resources, the better and the bigger your profit margins. If a client isn’t willing to pay what you’re worth, or gives too many hassles and causes too many problems, it might be time to let them go. In life, we often move away from relationships which are more trouble than they’re worth. Clients are no different.

 

Finally, be discerning about the type of work you take on. You really don’t need to accept all business and every client that comes your way. Sometimes it isn’t a good fit and that’s okay.