Small businesses often find themselves in a desperate situation to increase their clientele. They are willing to agree to their unreasonable requirements as it will help them survive the initial stage. However, there will come a time when firing them is more feasible than meeting their demands.
Not only the businesses, freelancers and solopreneurs also find themselves in the same tricky situation. They don’t want to lose the clients but managing them becomes almost impossible. It is okay to compromise, but don’t ignore the signs of unresolvable conflicts to drop them.
Financial Impact of Dropping Clients
We often consider the financial impact as the major reason to submit to the demands of clients. Dropping a client will hurt your revenue, especially during the first few months of your business. But it should never be the reason to manage them with unreasonable demands.
Dropping a client will help increase your focus on the existing clientele with better services. Your business will maintain the professional standards to create a good reputation in the industry to attract more clients. The temporary financial problems will not hurt your business if you taking for quick loans in Ireland from a direct lender.
Signs to Drop a Client
You must have a strong reason to drop a client instead of trying to build a relationship. It means the revenue will take a hit and your hard work to secure them was a waste. Therefore, look for the following signs before firing the clients if you own a small business.
1. No Contract
Businesses understand the importance of a contract before starting a project. The terms, conditions, and requirements, along with the other details, are mentioned on it. The signature of your client is evidence they agree to the statements in the contract.
Still, you will find a few clients refusing to sign the contract for invalid reasons. They may not pay for the work, and you cannot force them to release payment with a legal measure. Therefore, you should drop the clients instead of working for them free.
2. Late Payments
Late payments cause cash flow problems as businesses need to pay the suppliers. You may end up with a financial crisis in the absence of working capital. Though, the option to take unsecured personal loans in Ireland is always available from direct online lending.
Another solution here is to politely ask and remind your customers of the payments after the due date. You should understand their situation if they provide a genuine reason for the late payment. If it’s a habit, consider dropping the ball on a client with no service from the future.
3. Partial Payments
Some clients may insist on making partial payments because of their financial condition. They may also find faults with the quality or delivery of the work to reduce the overall cost. It is indeed disheartening to get the low price for your hard work.
You can refuse the partial payments if the reasons are unacceptable. Use the contract to file a lawsuit to get compensation for your troubles. And it will burn the bridge between you and the client for future projects.
4. No Payments
You will find a few clients refusing to pay a single dime because of some unreasonable excuses. Do not let them get away with it and use your powers in the contract. Delete their contact as it makes no sense to keep the business relationship with them.
However, certain situations may come when their concerns are understandable. A cheap quality product or something that doesn’t come close to their requirements is a good reason to refuse the payment. Come up with a solution to protect your brand reputation even if it requires letting go of the payment.
5. Cheaper Price
Price has always been the strong point in favour of small businesses compared to corporations. They need to offer a better price to convince their existing customers into trusting your business. However, the cheaper price often reaches a point way below the industry standard.
It is okay to give special discounts to your first few customers as they will spread the word about your brand. It will help create a larger clientele with the price of your choice. However, you should drop the customers and start the search for their replacement if the price is too low.
6. More Work Than Initial Requirement
You set a price and deadline for the delivery of a project based on the initial requirements. It gives an idea of the efforts a project will require to meet the expectations of the client. However, some may take advantage of the initial cost to increase the requirement once the project starts.
It may start with small changes over time before the delivery of the project. However, it will turn into major changes with a different deliverable from the original agreement. Stick to the original requirements and drop the clients if they are asking too much of your time.
7. Unfair Advantage of Your Time
The additional hours dedicated to the clients are reasonable for urgent requirements. You may spend time on their projects during the break hours now and then. But it should not cause frequent disruptions in your schedule.
They are working at midnight is not a reason for you to work outside the office hours. It will have a negative impact on your health and relations. Therefore, do not allow them to take unfair advantage of your time to suit their schedule.
Agree on work hours and time for the project during the office hours in the contract. Set exceptions for customers with genuine requirements or a longstanding relationship with your business.
To sum up, you can use the above signs to reconsider your decision to maintain a client relationship. They may seem important for the growth of your business. Nevertheless, businesses dropping clients for their unacceptable conduct is common in the professional world.