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Fire Your Client!
By Marsha Lindquist
DIFFICULT, but not impossible! Turning down business or walking away from a profitable piece of work is something that we usually don’t think of doing. However, things change when you look at all of your prospects or existing client relationships. If you focus on what you enjoy doing and what you have planned for your company, maybe it makes better sense to weed out your client garden just a bit.
Persistence is a gift when you are pursuing your next prospect, but persistence can get in your way, if you don’t see the signs that let you know you should turn around, quit banging your head against a brick wall and walk away. Consider firing a client or leaving a business opportunity for others to pick up if you see any of these conditions.
Marsha Lindquist’s ‘Walk Away’ Test
1. The business is not part of your core talents nor is it in your plans to develop this talent.
2. It is a losing proposition.
3. Your competition is highly unlikely to be unseated.
4. Satisfying this client is an impossible task.
5. The demands of the situation are not consistent with your philosophy of doing business.
Why Walk Away?
Some people might say it seems fool hardy to let a perfectly good piece of profitable business go. But, when you reflect on the potential and real profitability and then what it takes to maintain it, sometimes it just plain makes sense to go by and let your competition have it. Maybe it takes you away from what you enjoy doing most or if it just doesn’t fit your line of business. If you answer yes to any of the above questions, the opportunity is a candidate for trash basket. Let’s look at Marsha’s tests for pursuing the work or turning it down.
Your Foundation Is Your Gift
When you want to invest in real estate and have the best venture possible, you hear there are only three things that matter - location, location and location. In business, there are also three things that matter - core talents, core talents and core talents. Your core talents are what you sell and you are only as good as those gifts. These are the things that got you successful. Why would you abandon those and try something new? When you stray from marketing those core capabilities, you take energy and focus away from the things you do best. Best is what your customers deserve. Give them your best, but only if it’s what you do best.
Losing Propositions Cost Money
Did you ever hear about the entrepreneur who claims that he loses money on each sale but that he makes it up in volume? Sound funny? It’s true too many times. It seems logical that we make money on each and every business effort we do. Sometimes, we can’t make the same amount of profit we’d like. Sometimes we can’t even make the minimum. But to actively pursue an opportunity that has no or little profit, with no offsetting benefit is just plain imprudent. There are times to chase a prospect that isn’t attractive to your bottom line. On those occasions there should be other mitigating circumstances that drive you to want that business. Could be an opportunity for substantially more exposure to more clients. Maybe a chance to show your stuff to a new client who will be buying more later. Even establishing yourself as a credible player in a new region. You would be wise to consult with trusted colleagues to evaluate such potentials. When you do things to get this kind of business, recognize you are taking time and energy away from your main activities and, likely, not doing what you enjoy most. Refocusing costs money.
The Customer Has a Long Love Affair With Your Competition
This is not about any out-of-the-office relations. It’s more to do with how the customer perceives the value of your competition. If the customer loves your competitor and can find no faults, you won’t unseat them as the favored provider. Continue walking. Spending time preparing competitive proposals or bids are likely a waste of time. Encouragement by the customer to engage in proposal writing may seem like a compliment to you, but may be only the customer’s way of ensuring they got adequate competition-nothing more. If you decide to present a proposal-even though you know the current provider is very highly regarded, be sure you know what they REALLY want and why you are doing it. If you know the customer wants a new supplier, consider presenting your talents. Save your money if they are only seeking a benchmark so that they can justify why they are keeping your competitor.
Satisfying This Client Requires Hiring Dale Carnegie
Have you ever had the client that just cannot be satisfied no matter what you do? If you are like most successful people, you have. Even when you consistently deliver quality service, you simply run into a client now and then that is so nit-picky that whatever you do, it isn’t good enough. If you hired Dale Carnegie, he couldn’t charm the client-that-defies. Give the client to someone you don’t respect-they deserve each other. When you get one of these-and you will someday-be sure to have a ready list of people who you think would deserve such good company. Refer them-then extract yourself. There is no sense spending quality effort on clients that don’t appreciate what you deliver. You still get a less than wonderful rating. Move on.
Your Business Philosophy is Paramount
Remember your business philosophy is what guides you- it’s vital to your success. If you compromise your basic values, you lose what you are all about.
The demands we all operate under can get overwhelming. When we constantly give in to clients’ requests that are unreasonable or counter-ethical, then having the business is not worth it. Demands for better service, when it is unreasonable to deliver better, dictate walking away. Demands for more time, when you are burning the midnight oil, dictate walking away. Demands for more, more, more should give us all reason enough to strongly consider walking away. Intangible benefits that don’t give you a good intuitive sense are reason enough to question pursuing the business relationship. Shoe leather is cheaper than stomach lining.
Stop trying to be all things to all clients. Your efforts to persuade clients to embrace your way of thinking or to try to embrace your client’s way of thinking yourself are tiresome. Anytime is the right time to say goodbye to fruitless clients. But the best time is before the opportunity becomes a problem client or a waste of business development time. It’s also the best way to build a solid business. Work to attract clients who are a good fit and serve them well. Make it fit with your own business philosophy and it will be a joy.
Copyright 2002
About the Author
Marsha Lindquist, a business strategist for over 15 years, draws on her proven “down in the trenches” experience, creativity, and participative manner to provide real solutions to businesses to assist them in building and growing their businesses. She is an energetic presenter and is also the Chief Executive Officer of The Management Link, Inc. As well as being the author of “Why Are You Still Working Your A** Off?”, she has written and published several professional journal articles on business strategy and negotiations. She can be reached by E-mail at marsha@marshalindquist.com
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