Dear Client, You’re Fired

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Do you have clients that cause you to sit down with a tub of ice-cream and potato chips to drown your sorrows in? Or perhaps you need something a little bit stronger – say a bottle of wine or vodka?

These are the types of clients that you need to send packing! They’re costing you too much money!

What Profitable Entrepreneurs Are Made Of

Here’s a little trivia for you….

- 1 million new micro businesses start up every year (A micro business is made up of 1 or 2 people.).

- 80% of those 1 million businesses won’t break 50K in annual revenue.

Here’s a Tweetie – 1 mil new micro businesses start up every year, 80% won’t break 50K in annual revenue. (Tweet this!)

Are you shocked by that statement?

So what about the 20% remaining? How do these entrepreneurs break the barrier? 

They’re making tough decisions. They’re looking at the BIG picture. They have a plan. They have a strategy.

So if you’re thinking, that’s interesting Tammy but what does it have to do with firing my crappy clients?

Everything!

Last week in my blog I wrote about how important it was to figure out what your time cost and make sure you pay yourself. This mindset keeps you off the hamster wheel and away from the busy work that undermines profitability. Click here to read that post. This is one of the decisions that the 20% entrepreneurs make.

Here’s a Tweetie – Entrepreneurs to get off the hamster wheel – put a dollar sign on your time and make sure you get paid! (Tweet this!)

Now let’s talk about your clients.

As you build your business you’re going to come upon bad clients, or as I call them in my book, Yanking Bootstraps, the crazies. Clients that don’t appreciate you, don’t pay you on time and flat out just drain you dry. When you have clients like that they use up way more time than they pay for. These clients not only rob you, but they rob your good clients as well. When you’re drained dry you don’t perform well for the clients that actually deserve the best of you.

Here’s a Tweetie – Bad clients not only rob you – but they rob your good clients too because they aren’t getting the best of you. (Tweet this!)

entrepreneur educationGetting Rid of Bad Clients

I want to tell you about a book that has a permanent home on my nightstand, it’s called The Pumpkin Plan by Mike Michalowicz. In this brilliant read Mike compares the strategy of growing a remarkable business to a pumpkin farmer. I’m in love with the way he tells the stories, shares his analogies, and creates such a compelling point in this very valuable book.

I read this book about a year or so ago when I was at a crossroads in my business and it really helped me to make some tough decisions. I’m actually reading it for the second time with a really different perspective because within the time that has passed, my business has grown substantially. It’s a great book for any business at any level.

I don’t want to give too much away about the book because I really want you to purchase it, however, there are two parts I want to point out in this post.

First off Mike takes you through a process that he calls Assess the Vine of which you evaluate your clients.

1. List your clients in descending order from highest revenue to lowest.
2. Put a line through the clients who make you cringe when you hear their names.
3. Create a column for each qualifier:

  • Pays fast – they pay on time or early
  • Repeat revenue – they purchase from you on a regular basis
  • Revenue potential – could they purchase from you again in the future?
  • Communication – do they communicate well?
  • Fix it – when you make a mistake, how do they react?

The other thing I want to tell you about is a segment that he calls Killing 1o1.

“Now it’s time to remove the weeds, the diseased pumpkins and any other distractions so that your existing top clients, and other new clients like them, can start blossoming.” - Mike Michalowicz

“Now it’s time to remove the weeds, the diseased pumpkins and any other distractions so that your existing top clients, and other new clients like them, can start blossoming.” - Mike Michalowicz


Mike’s philosophy teaches you that as you grow your business, weed out the bad clients.

Here’s a Tweetie – As you grow your business, weed out the bad clients. (Tweet this!)

**Take it to the Bridge**

Deciding to be an entrepreneur may begin with the gut-wrenching decision to risk dependable income but it certainly doesn’t end there. You’re going to face all sorts of really tough decisions, that is if you plan to be part of the other 20%.

Remember what an entrepreneur actually is -

Here’s a Tweetie - An entrepreneur is a person who operates a business, taking on greater than normal financial risks in order to do so. (Tweet this!)

So are you really putting yourself out there?
Are you taking risks? Making tough decisions?

Be part of that 20%!

(If you enjoy this post & video will you please leave a comment in the Facebook box below? Thanks!) 

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  1. […] 2. Make Tough Decisions – Successful people are always prepared to make tough decisions. We don’t just stay in situations because it’s easier or we’re too afraid, or perhaps we fear confrontation. I can create a million scenarios. For an example consider this, do you have toxic relationships in your business? What about with your clients? Do you have clients that make you dread even getting up everyday? Do you have clients that don’t pay you on time or not at all? Perhaps it’s time to fire those clients! […]

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