Advertising
Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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

More by this author

15 Newsletters That Will Enrich Your Life Why You Should Fire 80 Percent of Your Clients

Trending in Career Advice

1 10 Essential Career Change Questions To Ask Yourself This Year 2 10 Job Search Tools Every Jobseekers Need To Know About 3 10 Websites To Learn Something New In 30 Minutes A Day 4 50 Great People To Follow On LinkedIn, No Matter Your Industry 5 If You Have This Key Behavior, You’ll Be More Successful Than 90% Of People

Read Next

Advertising
Advertising
Advertising

Last Updated on April 17, 2019

10 Essential Soft Skills That Will Help Advance Your Career

10 Essential Soft Skills That Will Help Advance Your Career

What’s the secret of professional success? Some of it lies in the mastery of your discipline and all the technical skills you have to carry out your job; but a much bigger part lies in the soft skills list you possess.

Soft skills are your people or relationship skills—how well you get along with others and your ability to communicate and collaborate—as well as the personal characteristics you bring to the job, such as optimism, a can-do attitude and the motivation to work hard. These skills are not always easy to point out, but their absence can cause serious problems and negatively affect the whole work atmosphere.

They say that hard skills will help you get the job, but soft skills will help you get along—and get ahead. With that in mind, here’s the top-10 essential soft skills list to help you advance your career.

1. Communication Skills

Communication skills are hands-down the most sought-after soft skill that bosses want, and this one ability covers a lot of ground.

To communicate well, you have to listen carefully, interpret the context of the conversation, express yourself clearly, persuade others of your point of view, check your body language and use an engaging presentation style that won’t intimidate or bore your audience. That’s a big ask!

Your personality traits can influence the way you communicate with others. For instance, some people get straight to the point and center their arguments around facts and logic; others are cooperative and sensitive to how others feel. Both these approaches are equally valuable but there can be misunderstandings if you don’t understand where the other person is coming from.

Taking a comprehensive personality test can help you understand why you communicate the way you do and where your blind spots are. It can also help you understand other communication styles is so you can tailor your communication to the person you’re dealing with.

After all, connecting with your conversation partner is the hallmark of good communication.

2. Flexibility

Change is an essential part of any business. Companies need employees who are flexible enough to work with new initiatives, open to new ideas, and generally are able to tough it out when things don’t go as planned.

Research has found a link between job performance and flexibility over the long term because there will be times when you have to step outside your routine and rise to fresh challenges that didn’t exist before.

Being flexible doesn’t mean you have to hop into a new task or job role like an expert. Rather, it’s about showing you’re willing to accept new responsibility and learn different things.

Advertising

Bosses look for people who are prepared to step outside their comfort zones and are open to alternative solutions when their first idea doesn’t work.

3. Being a Team Player

Working on a team can be challenging but learning to do it well can definitely help you get ahead in your career. Employers look for people who can negotiate, cooperate and manage conflicts with other people to achieve a common goal. That includes the ability to build lasting relationships with customers and clients.

What makes a good team player? Essentially, it’s someone who knows the goal and knows her role. Employers look for evidence that you know your strengths, your responsibilities and how you can best contribute to the team, then put those skills into action by sharing ideas and communicating in a respectful manner. That’s the definition of being a good team player.

This is another area where taking a personality test can help you get ahead. When teams work together, each member brings a unique set of skills and qualities to the group. Research has shown that different combinations of personalities affect how teams collaborate and how productive they are.

Knowing who you are, and how you work on a team, can drive new insights and open the door to better teamwork.

4. Positive Mental Attitude

There are plenty of things you can’t change at work, like the people you work with or the fact that the printer is broken again. The one thing you can change is how much you let these things bother you.

Bosses like people who are calm, rational and upbeat—those who diffuse tensions in the workplace, not get all grouchy and go around slamming doors.

Studies show that people who maintain a sunny disposition have better relationships at work, are happier in their jobs and make better decisions than those who whine and complain. Some suggest that a positive mental attitude can also make you live longer—which means it’s beneficial for every area of your life![1]

It’s not always easy to keep a “glass half full” mentality when work is stressful and the deadlines are piling up. But there are some things you can do to help maintain a positive attitude. Laughing at your unfortunate circumstances keeps the work environment positive, and taking “sanity” breaks can help you keep your cool in high-pressure situations.

Managers look for positive mental attitude in a team member that is ready for a promotion, so it really does pay to keep your cool in challenging situations.

5. A Strong Work Ethic

People with a strong work ethic are committed to the role, persevere when things get tough and are inspired by challenge. These people are ambassadors for the organization, and will always be seen as top talent and ideal candidates.

Advertising

If you can exhibit this skill, then expect to be seen as a great candidate, eligible for new opportunities and positions throughout your career.

Since a strong work ethic can mean different things to different people, it helps to show specific examples of your exceptional work ethic during a performance appraisal or interview. For instance, you might talk about:

  • A time when you persisted in the face of challenges and did not shy away from hard work.
  • How you volunteered to help with projects even though these tasks did not form part of your job description.
  • The networking, workplace learning and skills betterment you’ve undertaken, which shows ambition and drive (people with a strong work ethic have those qualities in spades).
  • How you own your mistakes and never, ever point the finger of blame at others.

For help with building a strong work ethic, check out these tips: How to Build a Reliable Work Ethic

6. Public Speaking

Who’s terrified of public speaking? Pretty much everyone, since public speaking is America’s number one fear, ahead of death at number five and loneliness at number seven.

Yet, according to Warren Buffett, mastering this one skill you could increase your personal value by 50 percent.[2] That’s huge!

If you’re not natural at public speaking, you’re in good company. Buffett had to work hard to overcome his stage fright and once dropped out of a public-speaking course before it started—because he was afraid of public speaking! He eventually realized that he needed to build up his confidence by just doing it; over and over in front of small groups.

For a more structured approach, Toastmasters International teaches public speaking and leadership skills through a variety of pathways. Membership of this non-profit looks good on your resume but the real payoff will come when you can put your newfound skills to use on the job or in the interview room.

Or, you can check out this advice: The Ultimate Public Speaking Tips to Hook and Impress Any Audience

7. Integrity

From a manager’s point of view, the two integrity skills that will set you apart are:

  • Always doing what you say you will do
  • Owning an error instead of minimizing or hiding it

…even when no one is around to check up on you.

There are lots of people who have climbed the ladder without scruples, but they are not the people who others trust, respect and support when promotion time comes around.

Advertising

Behaving with integrity is a safe and consistent way to enhance your reputation and achieve your professional goals.

8. Managing Your Time

Phone calls, texts, Slack pings, meetings, huddles, side projects, multitasking—we are busier today than any generation before us. There’s no denying the workplace is an incredibly distracting place to be.

A lot of us have traded effectiveness for busyness which we wear as a badge of honor, both as a proxy for productivity and to show our value to the company. But what bosses want, what they really, really want, is someone who actually gets stuff done on time.

Time management is not merely the art of being on time, but of managing your time so you focus on the projects that really matter and add value to the business. This means prioritizing well, sticking to schedules, delegating, and not getting distracted by tasks that are easier to perform or less important. It means planning ahead and learning when it’s appropriate to say no.

Time management can be a tough skill to maintain, but not a difficult one to pick up. Monitor your actions for a few days—how long do your tasks take to finish? What’s interrupting you? What causes you to lose focus? Once you have the answers to these questions, you can set a schedule for yourself to make sure you’re spending your time wisely and this valuable asset is never wasted.

These 20 Quick Time Management Tips to Super Boost Your Productivity are also great to try.

9. Assertiveness

In any workplace, you typically will find people with the following conflict styles:

  • Passive: Those who go out of their way to avoid conflict.
  • Passive-aggressive: Those who express their negative feelings through actions rather than words.
  • Aggressive: Those who respond to conflict in a hostile and rude manner. These people get their opinion heard but they won’t make any friends in the process.
  • Assertive: People who stick up for their rights while still respecting the rights of others.

Managers look for assertiveness above all other styles because it allows decisions to be made without conflict or alienating people.

How do you use this information for yourself?

It starts with understanding your personality so you can anticipate how you will react when conflict arises and address your own shortcomings. Then, you can start influencing the team for top results, and securing your own career advancement in the process.

Learn how to be assertive and gain respect:

Advertising

How to Be Assertive and Stand up for Yourself the Smart Way

10. Creative Thinking

LinkedIn recently analyzed over 50,000 skills that employers search for when looking for candidates to find out what skills are currently in demand.[3] Taking the number-one slot on the 2019 soft skills list was creativity: the ability to solve problems and think outside the box.

Creativity is about bringing fresh, and sometimes unorthodox, ideas to the table. This helps companies to innovate, and companies that do not innovate will not survive very long.

How do you showcase your creative thinking skills? The golden rule is to participate.

Be brave and share your ideas during group brainstorming sessions. Volunteer to run a society, networking event or recruitment drive. Ask “what if” questions: “What if we add this information to the client welcome pack?” “What if we eliminate step 3 from the process?”

These activities demonstrate that you’re prepared to go beyond “business as usual” towards creative problem solving—an ability that will serve you every day, all throughout your career.

You can learn to unleash your creativity power:

What Is Creativity? We All Have It, and Need It

Final Thoughts

The good news? Every item on this soft skills list can be learned. Although you may feel lacking in certain areas, taking an inventory of your strengths and weaknesses will allow you to focus in on the areas that you’ll benefit from developing.

So take an inventory of your personality, skills, and talents. This will give you a baseline for your communication style, attitude to change, conscientiousness and more. You can then identify your weak areas and develop strategies for improving your team-building, assertiveness and conflict skills.

The better news? The effort is worth it. Developing your soft skills opens the door to a new job or a promotion, and helps you succeed once you get there.

More Articles to Help Advance Your Career

Featured photo credit: Rachael Gorjestani via unsplash.com

Reference

Read Next