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Business You Can’t Afford to Do

September 8th, 2006
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I know this seems unlikely, but an article I read today in a SitePoint Times newsletter brought this to mind.

Sometimes, there are clients you can’t afford to have, no matter how bad business has been. You can always tell these folks - they want to beat you down on price, seem overly picky, argue with you on every point, and seem to always “know best”.

Case in point: in my early days consulting, I landed a client about 80 miles from my home base. This was a small business wanting to grow; they had a good product but just hadn’t seemed to be able to get off the ground.

I went out to meet the client for the first time. She told me that she couldn’t afford to pay my price (which was only $200) for a business review and recommendations. She argued with my methodology, wanting considerable customization in the project. She wouldn’t share her financials with me. She wouldn’t make an initial payment, preferring to wait until the final report was presented.

These were all warning signs, but I had a reputation to make, so I took her on anyway.

During the project, it became obvious she already had her own ideas of what the recommendations should be, and tried to get me to change them. She disagreed with the analysis I had done, telling me that the results of the market research I had carried out (with existing and potential customers, all of which she identified) was wrong and that neither group knew what they were talking about.

You can guess the rest - she refused to pay for any of the work at all (even though I had reduced the price to $150 and offered to let her pay in two installments after delivery of the report). And she insisted that I travel to her site three times during the study.

Clearly, this was business I should have declined. My gut told me that during the first meeting, and repeated the message every time I had dealings with her. However, there is no teacher like experience, and I finally learned my lesson.

Now, I’m very attentive to any warning signs during early contacts. I avoid prospective clients who give off these signs. And I stick to my guns about the scope and pricing of work.

I encourage you to do the same. If, for some reason, you do take on such customers (which I don’t recommend), be very clear on why you are doing it and be very careful in your dealings with them.

I deal with clients who are a joy to know. They are helpful and cooperative. They let me do my job, respond constructively with feedback, ask intelligent questions and assist me in delivering the best work I can. I bend over backwards to help these clients.

There are always hiccoughs in business. Everyone has bad days from time to time. We all make mistakes. I don’t see any reason to add to the load by taking on difficult clients. Here’s a chance for you to learn from my experience.

Until next time, take care of yourself!

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