Choose your clients and customers wisely
Business lesson 2.
Continuing with the deep dive into each of the “10 business lessons to learn sooner rather than later,” we’re on to…
Lesson number 2 - Choose your clients and customers wisely.
TL:DR - summary from the roundup article
When you’re starting out, you want people who want what you offer and you want to get revenue flowing in. What you’ll learn over time is that you don’t necessarily want all of the people that want you. Some clients/customers are better for you than others.
I say “for you” intentionally, as everyone is different and vibes with different folks. When you start to get a sense of what works for you and who you can best help with your services or products, honor that. And learn to say no.
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Why getting clear on who you want to work with matters.
At some point in your business journey, you’re going to realize that you don’t need to say “yes” to every Jane, Stella, and Constance who wants to work with you. I mean this with all due respect to Jane, Stella, and Constance. Because it’s not all about them. It’s about you and them together, and whether or not they’re a fit for what you have to offer and you for what they need.
When I say, “what you have to offer,” I mean it writ large. Your expertise, how you show up, what you’re selling, how you're delivering what you’re selling, your commitment, your fees. All of it.
It’s easy to assume everyone you might possibly work with will get it — all of it and all of you. But that’s not always the case. They may not be the kind of person or organization to meet you where you’re at. And you may not be the kind of person or team to meet them where they’re at.
This is so unbelievably important to get because the quality of your days is the quality of your life. And your business is a major contributor to the quality of your days. If you have a client or two that’s making you miserable, a good part of your life is going to be miserable. I’ve experienced it myself and seen it unfold in my clients’ lives and businesses.
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How you can set yourself up for client alignment.
There are processes and approaches you can adopt in your business to create the best chance of a positive, productive client relationship.
1. It starts with clarity.
Who you are, what you have to offer, who you want to work with.
Let’s get rolling with who you are.
You know who you are and what makes you unique. All of your skills, expertise, experience, passions, hobbies, relationships, obsessions that make you “you.” And if you don’t, it’s time to get clear on this ASAP. You need to be grounded in this to be confident in attracting the right clients for your business. If you’re still trying to figure this out, I’ve uploaded an exercise I created — What Makes You Unique — to the Resources page. You can download it there and the do it.
And look at what you have to offer.
This assumes you know who your ideal client is, what problem you solve, and why your client buys from you. You’ve thoughtfully crafted your offerings and your pricing based on this work.
Then consider what makes a good client FOR YOU.
This may not be the same as your colleague or friend who’s also running a business. Make a list of what’s most important to you in your client relationships. Think of it as the business version of your “ideal partner.” Because you will be getting in bed with them, so to speak.
Here are some questions to consider:
Is the customer in your target audience? If not, why are they potentially a fit?
Are they buying your core service/offering or are they expecting you to deliver way outside your skillset/comfort zone in a way that feels really uncomfortable — stretching is good, coming up with creative ways to partner with others is good, turning yourself into something you’re not is not good.
Can you deliver the outcome they’re expecting?
Are they paying you what deserve or have you lowered your rate to meet what they say they can afford?
2. It takes rigor.
Meaning you have a process to vet clients (and yes, I get that this is a mindset shift). I read something interesting recently in “10x Is Easier Than 2x: How World-Class Entrepreneurs Achieve More by Doing Less.” It’s the concept of always being the Buyer not the Seller created by co-author Dan Sullivan.
“Being the Buyer means you have a clear standard for yourself and you know what you want. The opposite is being a Seller, where you’re desperate to be in a particular situation because you think you need it.
As the Seller, you’ll twist yourself into uncomfortable shapes to be accepted. You’re unclear on and uncommitted to your intrinsically crafted standards. You continually lower or change your standards to ‘get the sale.’”
You need to meet with potential clients at least twice — so you have a full understanding of their needs, can price your services based on those needs and the outcome you’re delivering, and can decide if this is a client YOU want to be working with.
If you’re running a group program or membership, the same intentionality applies — one person who’s not a good fit can throw off the experience for the entire group. Thus, impacting the results achieved by the other participants/members. Have people apply to join and meet with them before you take their money.
See below for “red flags” to watch out for.
3. It takes guts.
To walk away. To say “no.” Especially when it’s an opportunity you would have previously said “yes” to in a heartbeat. Especially when you don’t have another hot prospect in the pipeline. It takes guts to listen to your gut.
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Guidelines to follow to spot “red flags”.
The truth is some clients don’t exhibit any warning signs during the vetting process or even early on in the engagement. Then for some reason having nothing to do with you or the delivery of your offering, something shifts in the relationship. It could be a newly arising personal challenge, personnel changes with the organization, or changes in the economy. There’s nothing that could have been avoided in this situation. Let yourself off the hook of thinking you’ve done something wrong and manage what’s happening in the moment.
With that said, know this…
Whether you’re selling a project or monthly retainer, a membership or course, what a client is like in the business development or vetting process is what you’ll get when you sign them on. And no, there are no exceptions to this.
Assuming you’ve got a business development process or you’re vetting folks for your program or membership, you’ll get a sense of what the person/business is like to work with:
Do they show up to calls on time? Are they late? Constantly rescheduling?
Are they pleasant to interact with?
Do they understand your value and what you deliver?
Do they push back on your fee?
Is there anything on your “must-have” client list that they don’t have but try to convince you they do?
Do you know anyone who’s worked with the client previously? What do they have to say? Believe them.
If you have a “nagging feeling” that something is off. Trust that.
Now, I get it. Your bank account matters. And there are going to be times when you want to throw out everything on the “red flag” list and take on the client, have the person join the program, group, or membership.
If you’re tempted to do this, know what you’re getting into and decide where you’re going to give and where you’re going to hold firm, to keep your sanity and get the best results possible.
Here are a few ideas to get you started on creative ways to manage the client experience with a less-than-ideal client:
Are you sensing they’re going to extend every meeting or request countless revisions on your work? Build that into your fee.
Will a participant be an over-sharer and take up too much time and space in a group? Create a time-limit rule for all participants to give everyone equal airtime.
Is someone going to be chronically late to meetings? Record the calls and let the person catch what they missed on their own, no recaps for them throwing off the timing and groove you’re in. Just communicate this as part of your ways of working at the start.
And remember… “no” is a compete sentence.
It’s your business. You decide who gets in.
#ICYMI
Business lesson 1 - Know your numbers from the start