Don’t Wait to Fire That Toxic Client – It’s Vital to the Health of Your Business

I am a person who comes in or doesn’t come in at all, either in business or in my personal life. I once had a close friend and co-worker who I worked with because of our shared love of business. At first, our friendship was good, but over time it became one-sided and toxic. My attempts to maintain friendships were often ignored or dismissed.

Finally, I realized it was time to let go and move on. In my long career as an entrepreneur, I have seen similar changes in business relationships. Do business long enough and you will experience your share of toxic customers and clients. What amazes me is how many entrepreneurs falter and procrastinate rather than take quick and decisive action.

In both personal and business situations, there is a powerful sense of freedom that comes from the ability to say “no.” Whether we decide “No, I have no room for this person in my life,” or “No, I no longer want to do business with this customer,” the word “no” can be liberating.

For a growth-minded entrepreneur, the idea of ​​severing a relationship with a customer, even a difficult one, may feel counterintuitive. Aren’t you supposed to provide for their needs, keep them happy and turn them into a die-hard fan? However, in the long run, letting go of a toxic relationship may be the most important decision you can make for the health and growth of your business.

Related: It’s Not Me, It’s You: When to End a Toxic Client Relationship

Why bad clients are bad for business

A bad client can do more than give you a hard time; They can also drain the resources and morale of your business, in the short and long term. You’ll undoubtedly feel your company’s energy drain and opportunity costs slipping through your fingers as you meet unusual and ever-growing demands. Even if you stick to it and manage the business with the client harmoniously, your employees may resent what you put them through. In addition, time and energy that could be spent helping other clients or working on other important aspects of the business is not worth the satisfaction of one high-performing client.

The following is from an original series of letters that circulated among my staff during an argument with one problematic client:

[This customer] … upset that we can’t customize our marketing to him. He has spoken to him [four members of our staff] and still not happy.

…

He has been very nervous since I started talking to him. He was like that too [two other staff members]. The words he used to describe our company and our sales team [highly offensive].

…

I don’t think we should continue working with this person at all.

For me, this was not a difficult decision. As much as I trust my employees, I trust their agreement that this client is not someone we want to work with. I ended the relationship and accepted the separation. In my experience, a negative review for your business is a small price to pay if the alternative is to violate the integrity of your business and jeopardize the well-being of your team.

Related: Business Breakups – How to Break Free from Toxic Customer Relationships

Making the most of a bad situation: Regroup and grow

Whenever your business experiences a setback, it’s important not to overlook any potential gains. When breaking up with a difficult customer, take the opportunity to show your team that you fully support them. Listen to their feedback and appreciate their hard work and the challenges they faced in dealing with this customer.

Just as people think about what they really want in a partner after a romantic breakup, as a business owner, you should do the same after ending a troubled customer relationship. Use this time to think about what types of customers are best aligned with your business goals.

This activity is sometimes referred to as creating a “customer avatar.” Based on real data and market research, customer avatars help you gain deeper insights into your target audience, allowing you to create more effective marketing strategies. Developing these avatars can be an engaging and interactive activity for your team.

When to stop chasing ghosts

Bad customers come in many forms. Unlike the needy, various abusers and abusers, the customer is silent in the background, silent on the radio. They may miss deadlines or fail to provide the necessary information or resources to successfully move projects forward.

At first, it’s important to give them the benefit of the doubt. Life happens, and they may be dealing with unexpected situations – maybe they have an emergency or are frustrated about something unrelated to your project (like a sick pet or a family problem).

See if you can put them back in the gutter. Send a friendly message about the progress you are making, explain how much you appreciate their cooperation and ask how they are doing. Your interest may remind them of the importance of the work you are doing together and encourage them to engage again.

However, if repeated attempts to reconnect fall flat, it may be time to realize that this client is not good for your business. Not all partnerships work, and that’s okay. Sometimes, the best course of action is to let them go, freeing up your time and energy for clients who are more aligned with your vision and values.

Related: Here’s How You Know When to Fire That Toxic Client

Opening the page

Entrepreneurs are not naturally inclined to push the business. When it comes to toxic clients, however, we have to tap into our deepest feelings. We know that letting go will benefit us, our team and our business. However, taking decisive action can be challenging.

Soon after I ended that lost friendship, I began to appreciate the extra time and energy I had for my family, my business, and other friends. At the cost of a brief uncomfortable conversation, I have gained weeks, months and years of freedom. Keep this cost-benefit calculation in mind the next time you have to fire a toxic client. Your efforts are not in vain but actually buy something of great value.