Deciding who to work for is one of the biggest decisions that a new business makes. People often make the mistake of going about this from the opposite angle—many young companies try to make themselves right for every customer. But as director of sales and marketing at Strategic Sales & Marketing, I’ve found that the truth is, not every customer is right for you. You’re better off finding the right fit—those great clients who love what you do—rather than trying to adapt your offerings to please everybody.
As you get started with building your client base, it’s important to give some thought to what a “good client” really means to you. By attracting more of the good clients and avoiding the bad ones, you’ll have a more productive, efficient business—and you’ll have a more fun and fulfilling professional life as well.
Here are a few guidelines on what makes a good client:
They pay their bills on time
First things first: you’re in business to make money. Any client who doesn’t pay their bills promptly (or at all) is not a good client—no matter how engaging the work or how nice they are to talk to on the phone, they need to keep your bank account well-replenished or else they’re just wasting your time. The best clients might be willing to give you more generous payment terms—ask them to pay you partially in advance, or pay you immediately upon receipt of your invoice. Maintaining a steady cash flow is the most important order of business for your company, and the best clients will understand this.
They aren’t too high-maintenance
Without clients, you wouldn’t have your business, but some clients may not be worth it. If a client is causing a lot of aggravation and stress, they might not be worth keeping. That’s why it’s important not to rely on a small client base. If they are taking up too much time—not allowing you to perform important tasks to sustain your business—and causing you to miss out on better opportunities with other clients, then it might be time to end the business relationship.
They value your work
Once the money situation is under control, it’s time to think about fulfillment. Some clients just aren’t going to get what you do. Some clients will object to your prices, question your expertise, nickel and dime you with petty complaints, undermine your consulting advice, and otherwise make themselves a source of pain and difficulty in your life. It’s up to you to decide how much of this you’re willing to tolerate—sometimes we all have to pay the bills, and sometimes it’s worth putting up with a bit of nonsense just to keep cashing those sweet, sweet checks. But the best clients will not interfere with your professional expertise—in fact, they will welcome your advice and will help inspire you to do your best work. There’s an old saying that “people never listen to advice unless they’re paying for it,” and the best clients understand this. They’ll truly value the service that you provide, and they’ll believe that you’re worth more than what they pay.
They spread the word about you
The best clients will be so happy with your work that they’ll eagerly refer you to new business opportunities. This is very gratifying when a client turns out to be one of your biggest cheerleaders and best marketers—and you should thank them and reward them generously. Getting referrals from existing clients is one of the best ways to build up a client base. But it’s not always easy to ask your clients to take the time and effort to introduce you to their network of colleagues and contacts. It’s all the more amazing if clients are generous enough to spread the word about your business. Consider offering a discount on their next bill. Or send them a really thoughtful gift, whether that’s a premium box of chocolates, cookies, concert tickets, a gift certificate for a sporting goods store so they can get new equipment for their favorite sport—whatever it is that they love to do. Show them your appreciation in a way that’s really thoughtful and personal, and they’ll keep rewarding you.
They’re people who you love to work with
Ideally, the best client relationships are valuable relationships even aside from the financial transactions. The best clients feel like more than just clients—it’s really not just about the business, but relationship-building and trust, and ultimately some of my best clients are ones where we exchange best practices, they ask for me business guidance, and vice versa. We find ways to create a lot of value for each other that’s beyond the scope of money. It’s true that your clients are not really your friends, because it is a business relationship. But sometimes, you have clients that are such great people and you get along so well that you just know you’re going to stay in touch for a long time, even if the business relationship someday comes to an end.
Building a business and creating relationships with clients is one of the great joys of being an entrepreneur. Every client relationship is hugely valuable—not only in terms of the monetary lifetime value of the business that you’ll do for that client, but in terms of the lifelong potential value of referrals and “free advertising” that the best clients can give you.
Cherish your good clients. Do whatever it takes to keep them happy. Ideally, if they’re really good clients, they’ll want to keep you happy too. The best client relationships are mutually beneficial, where you both bring out the best in each other and help each other make more money for years to come.
Photo credit: Lauren Kallen