I have a client, let's call him Bob, who had a nightmare of a customer. Bob's customer was always late on payment, was high maintenance, and was never wrong. I suggested Bob fire this bad customer. The problem? This customer was 25% of Bob's revenue. Ouch!
After Bob had finally had enough, he bit the bullet and let his customer know they would be no longer be working together. Bob was professional, gave them a 60 day notice, and even offered some names of competitors (Bob thought that was funny).
Bob's business took an initial hit financially, however, over the course of only six months, he replaced the income. And Bob was happier than ever.
There are certain customers you have, that are like Bob's customer. Let's take a look at five of them.
Firing the customer is never easy and may not always be right for you. The thing to remember is that you are running your business to make a profit and to provide a product or service that helps others, and that product or service may not be right for everyone.
Charles Alexander is the Director of the Tennessee Small Business Development Center at Vol State Community College