Firing a client is never easy and it’s not something any of us ever really want to do. However, it’s important to maintain a profitable business so that sometimes means doing the difficult thing. In this episode I want to take you through my process of understanding when you should be firing a client - tips to determine client profitability.
To understand when to fire a client, a great place to start is with a client profitability analysis. That being said, determining whether or not they are profitable strictly by numbers is not the whole picture and firing customers needs to be based on more data than purely numbers.
If you truly want to know when to fire a customer you need to take into account other factors such as how difficult they are to work with. Are they paying their invoices on time? Do they always question the process or the invoice? You see, if it’s purely a mathematical issue then you have a moment to discuss new fees with that client but if you are seeing behavioural things as well then terminating a client might be the best solution.
Difficult clients are never easy but firing difficult clients brings an unprecedented amount of relief as well as gives you time back in your schedule for new and more profitable clients.
Connect with me on LinkedIn or visit our website rightsource.com.au
Visit the downloads page to access accounting spreadsheets, templates and budgets.
If you have any questions, are in the process of starting up an NFP, interested in becoming an NFP CoSec, feel free to contact me on LinkedIn.
If it is of interest, join us for the NFP Governance Rendezvous, a free online event for NFP CEOs, Directors and CoSecs, or anyone aspiring to these positions; or just wanting to learn more about governance in the NFP space. Click here to learn more about upcoming Rendezvous.
Right Source Empowering Your Purpose Is Ours.
Firing a client is never easy and it’s not something any of us ever really want to do. However, it’s important to maintain a profitable business so that sometimes means doing the difficult thing. In this episode I want to take you through my process of understanding when you should be firing a client - tips to determine client profitability.
To understand when to fire a client, a great place to start is with a client profitability analysis. That being said, determining whether or not they are profitable strictly by numbers is not the whole picture and firing customers needs to be based on more data than purely numbers.
If you truly want to know when to fire a customer you need to take into account other factors such as how difficult they are to work with. Are they paying their invoices on time? Do they always question the process or the invoice? You see, if it’s purely a mathematical issue then you have a moment to discuss new fees with that client but if you are seeing behavioural things as well then terminating a client might be the best solution.
Difficult clients are never easy but firing difficult clients brings an unprecedented amount of relief as well as gives you time back in your schedule for new and more profitable clients.
Connect with me on LinkedIn or visit our website rightsource.com.au
Visit the downloads page to access accounting spreadsheets, templates and budgets.
If you have any questions, are in the process of starting up an NFP, interested in becoming an NFP CoSec, feel free to contact me on LinkedIn.
If it is of interest, join us for the NFP Governance Rendezvous, a free online event for NFP CEOs, Directors and CoSecs, or anyone aspiring to these positions; or just wanting to learn more about governance in the NFP space. Click here to learn more about upcoming Rendezvous.
Right Source Empowering Your Purpose Is Ours.