Cull Unprofitable Clients to Help Your Business Thrive

An important part of being a savvy business owner is knowing which clients are worth your time and energy.

An important part of being a savvy business owner is knowing which business connections are worth your time and energy. Unfortunately, in the rush to stay competitive and maintain strong connections to clients, many business owners don’t take the time to prune dead-end clients, which can cost them substantial amounts of time and money as a result. Or perhaps they know which clients are dead weight, but they can’t bring themselves to cut the cord for fear of creating an income drought.    

It’s simple. If you have a "client" on your books who isn’t buying goods or services from you or hasn’t done so for a considerable length of time, then that person isn’t really much of a client and isn’t worth your time. Each time you place a call or try to chase down a client who has no intention of buying from you, you’re wasting time that could be spent cultivating more lucrative client relationships. You’re also decreasing productivity and preventing your business from reaching its full potential.

Here’s how to avoid that trap and liberate yourself from unprofitable clients.

Separate the Good from the Bad.

Stay on top of your client list to make sure you’re not wasting time following up on dead ends. Instead, you should be concentrating on leads that have a medium-to-high likelihood of resulting in a sale. Keep track of those clients that just aren’t buying anymore (or those prospects that no longer seem interested), so you can dump the dead weight and focus on helping your business flourish.

Deadheading clients is like snipping the dead petals off a flower before they drain nutrients from the rest of the plant. Why leave them to cause problems, when a quick snip can take care of it? Unprofitable clients not only waste your time, but they can also be psychologically draining for you and your staff, making you feel as if you’re chasing your tail when you should be getting ahead.

Use the Gentle Touch Solution.

You don’t want to risk offending past clients, so it’s best to phase them out gently and gradually. No need to tell them flat-out that you won’t be working with them anymore. With any luck, they won’t even notice that you’re no longer pursuing business with them. By using this gentle touch solution, you get the best of both worlds–you’re no longer spending time courting sales that just won’t happen, and you haven’t insulted contacts who might know others in your industry and spread bad word-of-mouth. The last thing you want is for deadheading to scare off other paying clients who think you’ve treated the inactive client unfairly.

It’s crucial to monitor your client list and constantly make sure you’re removing those who aren’t pulling their weight. Remember, it’s a two-way process: if you had an employee who cost you money, time, and morale, you’d fire them – why should it be any different for clients who aren’t giving you their best?

Total
0
Shares
Previous Article

Are You A Sick Entrepreneur?

Next Article

Invention in the Spotlight – September

Related Posts
supply chain
Read More

How to Keep Vendors and Clients Happy During Supply Chain Hiccups

Supply chain breakdowns are happening due to global disruptions, rising costs and increased consumer expectations. Businesses can't always stop supply chain hiccups, but they can learn from them and limit their impact on vendors and clients. How a business responds to a supply chain issue can have far-flung effects. A company that is proactive and...
Read More

The Fear of Commitment: Why ‘No Obligation’ Is Music to Your Customers’ Ears

We live in a world with endless options and opportunities: where to live, where to eat, where to travel. Things to do, things to see… …Things to buy.  With so many options (and many at their fingertips), why would customers want to commit to something? They wouldn’t. And often don’t. After all, having too many...
implementing new systems
Read More

9 Mistakes to Avoid When Implementing New Systems

If your systems aren’t lean, efficient and precise, you’re wasting time and money while putting your business at unnecessary risk. If you’re going to build out new systems, you need to do it right. Avoid these nine mistakes when building new systems to transform how work gets done in your business. 1. Ignoring human nature...
Read More

How to Support Employee Mental Health and Avoid Startup Burnout

When it comes to finding the right job — and staying there — candidates are looking for a lot, especially in a virtual setting. Gone are the days where foosball tables and free snacks constituted benefits. Of course, we still love them, but there has to be more that matters. People are primarily looking to...