Firing a Client

For many small businesses and freelancers the idea of firing a client is a crazy one. Maybe you’ve thought about it. OK, who are we kidding, you’ve definitely thought about it. But usually it remains a daydream that you never act on. You’ve certainly read about great ways to salvage your relationship with a problem client. But what do you do when you just want to get rid of a client?

The notion of firing a client isn’t as drastic as it might seem at first. If you approach this idea with an open mind, you’ll begin to realize that firing clients makes room for new (and better) clients. The opportunity to have more rewarding projects with better clients should be motivating. Don’t let the fear of not being able to get other work take over.

Clients define our business. Keeping clients that are having a negative impact on your work make you less productive, limits your growth, and will make you less profitable. Don’t subscribe to the “I can’t afford to loose clients” mentality. Instead, realize that what you can’t afford is to keep problematic clients. They create more work and more stress for you, and ultimately will reduce your profits.

Before picking up the phone and telling a client, “You’re fired!”, it is important to understand why you’re firing the client, and to make sure it is really the best decision. You need to recognize the difference between short-term differences and long-term problems that are having a negative impact on your business

Sometimes arrangements just don’t work out or turn out not to be worth the effort. Assuming you are fulfilling your obligations and your client is not, you should start evaluating what you would gain (and lose) by giving up this client. Here are some questions you can ask yourself as you start evaluating the common warning signs that indicate it might be time to fire a client :

• Does the client frequently pay invoices late, or not at all?
• Is the client questioning details of your invoices (don’t mistake attention to detail and frugality for serious problems)?
• Is the client missing deadlines for reviewing materials, affecting your ability to meet project milestones?

These questions identify some relatively obvious reasons to fire a client. Another indication it’s time to fire a client is when the relationship simply becomes a negative working experience for you. Such relationships are draining and they take away from your productivity. You won’t do your best work for a client you’re not happy with. Such a situation isn’t fair to you, but it is also unfair to the client. It’s best for everyone involved if you cut your losses.

Once you decide to fire a client you need to be sure you don’t leave any room for negotiation. Don’t let your client talk you out of being fired, as you’ll only regret it that much more later.

Consult your contract and consult a lawyer with any questions. Have all project materials that have been paid for to date organized and packaged for shipment to the client. Additionally, prepare the final invoice, possibly at a discounted rate. Whether you deliver the news by in person, by phone or via email is a matter of preference. I would suggest either in person or on the phone (whichever has been your normal mode of conversation with the client) explaining why the relationship is no longer a good fit followed up with an email or letter in the mail so you have documented your action in writing (be sure to keep a copy for your file).

Remember, your goal is to dissolve the working relationship professionally. No matter how tempting it may be, don’t use this opportunity to launch into an attack. Even though you have no plans to work with this client in the future, you don’t want to develop a reputation for being rude or unprofessional that can hurt your business later. Remember, the client you fire may talk to other clients you have now or will have in the future.

You’re sure to feel an immediate sense of relief as soon as you fire a client. More importantly, you’ve now made room for another client that can add value to your business. Don’t dwell on the negative aspects of the client you had to fire, and instead focus your energy on finding that next great client. Preferably one you won’t have to fire later! Fortunately, it’s a freelancers market, so you shouldn’t have too much trouble finding work.