LET’S TALK... YOU ARE NOT A JAR OF NUTELLA

Saying NO to potential or existing clients has often been regarded as a luxury business people have been reluctant to make. However, given that many businesses are now operating with severely stretched resources it is becoming a necessity.

Saying YES to every client can easily lead to damaging your reputation by over promising and under delivering, not to mention the additional stress placed on the business owner and team members who are trying to deliver to the client.

Some clients you may want to be sceptical about:

The de-valuer: This is a client that uses words like - simple, quick, easy, or ‘it won’t take long’. They are already devaluing your work before you have started.

“We are going to try you”: These are often people that have tried a few different businesses before they come to you. This could well be a sign of a larger problem that will reveal itself later.

“I’m not quite sure what I want”: While it is part of your job to solve problems for your clients, it can take a lot more time if the client is unclear or finding it difficult to articulate what the problem is they’re wanting you to solve.

“We’re in hurry, can you do this now?”: That starts sounding like the ball has been dropped somewhere else and you are being invited to share in the chaos. Decide whether you want to share in the stress and whether the client is prepared to pay you for sharing in it.

“Can you also do ...... ?”: Where the original scope of the job keeps increasing, it makes it hard to allocate your already stretched resources to completing it. There may also be a reluctance by the client to pay for the additional work.

The dictator: These are clients that want to dictate to you how the job should be completed. You need to decide whether you are willing to undertake work under those conditions.

The first timer: Every business needs new clients. Traditionally additional time needs to be spent with new clients. Make sure that you can commit those resources for both your sakes.

“Do you accept payments over time?”:

This suggests the potential client doesn’t have the money to pay for the job now and quite possibly won’t have in the future either. Common-sense suggests you are better to do work you are going to be paid for sooner rather than later, so you don’t end up committing further resources to recovering your debt.

There is a fine line between saying YES or NO to clients, particularly when you are just starting in business. Squeezed profit margins can result in a job either making you money or costing you money. Many established and successful businesses are quite intentional about the types of clients they wish to have, and regularly cull their client base.

As the classic Australian saying goes –

“You can’t make everyone happy… you’re not a jar of Nutella.”

Keep that in mind when you are next approached by a client to undertake their work.

By Bill Taylor. Bill is an accountant with MCI & Associates and local businessman. He has extensive practical experience in accounting and business, with a particular interest in taxation. He participates in many community activities and recently served on the Dannevirke High School Board of Trustees and the Scanpower Customer Trust.

Disclaimer: The opinions expressed in this article are those of the author. The information and opinions published should not be a substitute for accounting advice. No liability is assumed by the author, MCI & Associates or the publisher for losses suffered by any person or organisation relying directly or indirectly on this article.