Like most people who start up a service based business, the clients in my first year or two varied widely. Primarily because I was happy for any work I could get! But over time, I realised that in order to build my business, and build a positive reputation, I needed to be more selective.
The first type of client I very quickly learnt to avoid was the type who seemed to have cash flow problems or who were reluctant to sign a contract. These clients quite often become non-payers. Although there are legal avenues to pursue when someone doesn’t pay you, it is a long drawn out process and quite stressful. Having clear policies or conditions for payment is an essential – and sticking to those policies yourself is vital!
Another type of client which can be harder to identify, is the type who takes advantage of your good nature. Some clients will try to change agreements, ask for ‘freebies’ or generally disrespect your time. These clients are best dealt with by politely and clearly re-stating the agreed terms. And if they continue to abuse those terms, you have the choice to ‘fire’ them (again, in a polite manner!).
A third client type to avoid is the unreliable one. In many service based businesses, there is a great deal of partnership and working together. For example, I can’t create a website without my client supplying the content and I can’t continue to progress the project without timely feedback. Ideally, a contract with clients should include timed deliverables. Where this is not feasible, communicating with the client that an additional fee will be payable if they don’t supply or respond within a reasonable time period can often get the ball rolling again!
While flexibility and generosity with your clients is paramount, you need to ensure you balance that with realistic expectations so that your business isn’t negatively impacted.
Michelle Grice writes a weekly column for business women in The Western Weekender
