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Why You Should Fire 80 Percent of Your Clients

Why You Should Fire 80 Percent of Your Clients

We’ve all got a few clients who make us want to tear our hair out — the ones who blow up your phone at three in the morning demanding revisions by tomorrow, those who keep pushing for deeper discounts, or those who openly tell you how to do your job. This article is definitely about why (and how) you should fire those clients, but they’re not the only ones who are holding you back. You’ve also got nice, respectful clients who just can’t afford to pay what you’re worth. This article is about a close friend of mine. He’s an entrepreneur who I will refer to as John. He’s the perfect sum of many entrepreneurs and business owners that I know.

Last year, John dumped almost every client in both of the categories that I listed above — 80 percent of his client base.

Since then, he’s made more money, built more satisfying client relationships, and had a lot more fun at work. This article is about why you need to fire those clients, and about how to use the newfound time you’ll have once you’ve fired them.

But first, let’s talk about why these clients are causing you problems.

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The problem

When John first launched his company, he took every client he could get. It didn’t matter to him how low the pay was, how tight the deadlines, or how extravagant the demands — he wanted a track record of good work so he could go out and score the clients he really wanted. In the beginning, there’s not necessarily anything wrong with that approach. The problem is that, as we get caught up in the day-to-day tasks of running a business, we lose sight of our longer-term goals and go crazy trying to make all our clients happy.

In certain cases, though, your happiness and the client’s happiness are mutually exclusive. Some clients think you’re outrageously overpriced, despite the fact that you’re undercutting most of your competitors, and will only be happy when you work for pennies. Others are convinced there’s no real skill involved in the work you do, and they could do it much better if they only had the time, so you should stop making such a big deal of it.

Some of your clients have told you these things outright. Others have strongly implied them. If you’re picking up vibes like these from any client, it’s time to put them in a box labeled “Box A: Definitely Fire.” Not only are they costing you money and time that’d be better spent working with clients who value your skill, but they’re also causing you stress, which is harming the quality of your work whether you realize it or not.

Aside from the clients in Box A, you’ve also got clients who aren’t actively pulling you down but are still dead weight. This isn’t always easy to see, which is why you’ll want to quantify the work you do for each of them. Grab a time tracking app and tally up the hours you put in for each client — not just working on projects, but (this is crucial) also chasing them down and communicating with them. Compare those hours to the amount they’re paying. Maybe they’re paying a flat rate or a lower fee structure from years ago. Maybe they pay fairly for the work, but not for the hours you put into chasing them down.

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Those clients need to go in a box labeled “Box B: Fire As Necessary.” They’re costing you money and time, but some of them may be worth the effort of a salvage operation.

Now let’s talk about how to handle each of these two groups.

The dump

The most important thing is to get the Box A clients out of your life as quickly as possible. They’re active drains on your resources, no matter how much they’re paying you.

Imagine John has got an absolute client from hell who pays a steady $500 every month but costs him $1,000 every month in anger therapy bills. Most client-related stress isn’t that simple to quantify, but the point remains: your success depends on the amount of creativity, positive energy, clearheadedness, and time you bring to every project, and any client who’s sapping an unfair share of those resources is chipping away at your bottom line.

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John fired his Box A clients (luckily he only had a few) as soon as he’d finished the latest stage of their projects and they’d paid for that work. There’s no point trying to satisfy these clients before you dump them because they’re never satisfied anyway. Don’t wait until they make you angry again, either — you’ll only say something you’ll regret.

Just send them a polite email as soon as they’ve paid, explaining that you’ve decided to focus on a specific subset of customers going forward, and this means you won’t be able to continue the relationship. All of that is perfectly true. You can leave it at that, or you can refer them to your competitors if you like. This will boost your professionalism in the client’s eyes and make them someone else’s problem.

However, John took a little more time to finesse the Box B clients. He sent them very polite emails explaining that he’d switched to a different fee structure, and while he deeply valued the relationship they’d built, it was time to focus on clients who’d pay the new fees. Would they be willing to make the switch? Most said no, of course. A few said yes. John referred some of the no’s to people he’d mentored, those trying to build up their client bases as he once was. At the very least, he asked all his Box B clients for referrals, which almost all of them gave freely.

Once that was done, it was time to upgrade John’s client list.

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The result

The first thing John did was lighten his workload for a couple days, just to get his creativity and positive energy back to normal. He stayed in close touch with the clients he’d kept, and for those couple days, he did something he’d always sworn he’d never do: John only worked on their projects at moments when inspiration struck and he could work passionately.

The quality of his work improved immediately. As he got back to his regular workload a few days later, referrals started to come in. His remaining clients had noticed the boost in quality and were sending John their friends. He emailed and Skyped with those friends and had a blast learning about their projects. He sent them bids that valued his time highly. Almost every single one of them accepted those bids.

Many of us falsely assume that firing a client will lead to an immediate dip in revenue. In other words, we assume there’s a linear relationship between clients, time, and money, and that the only sure way to make more money is to spend more time with more clients. You can see how false this is when you think back to your launch days. You spent a certain percentage of your time working for clients and, at the beginning, a much larger percentage of time crafting pitches, reaching out to leads, and cultivating relationships. This is exactly how you should use the time you free up when you dump your deadweight clients.

Nowadays, John’s client list is back up to about 50 percent of its original size — and every one of those clients is a person he genuinely enjoys working with. Every one of them pays him what he’s worth and treats him as an equal when they talk. John’s monthly income has nearly doubled for roughly the same number of work hours. He sleeps better, he works more happily, and he keeps bringing in the referrals.

This is why you should fire 80 percent of your clients. Not because they’re all evil, or because they’re all ripping you off, but because your worth is so much higher than they think. In the end, those deadweight clients are robbing you of your potential. Fire them, find better ones, and find out how high that potential goes.

Featured photo credit: Put’em Up by Dave Meier via picography.co

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Last Updated on March 31, 2020

How to Use Visual Learning to Work More Effectively

How to Use Visual Learning to Work More Effectively

Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

The Importance of Knowing Your Learning Style

Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

But it all starts when you’re able to first identify the best way you learn.

As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

The four most popular types of learning styles are:

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  • Visual learning style (what this article talks about).
  • Aural or auditory learning style (learning by listening to information presented).
  • Verbal or linguistic learning style (learning that involves speech and writing).
  • Tactile learning style (learning by touching and doing)

But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

How to Know If You’re a Visual Learner?

When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

How to Use Visual Learning for Success

Here’re 4 ways to use visual learning to boost your career or business:

1. Bring back the to-do list. Then add shapes and colors to boost productivity.

We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

2. Add graphs, charts and symbols to your reports.

Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

3. Effectively brainstorm with mind-mapping.

Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

4. Add video streaming to meetings.

What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

Is Visual Learning Better Than Other Learning Styles?

No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

More About Learning Styles

Featured photo credit: Unsplash via unsplash.com

Reference

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