One of the hardest things for a small business owner is acquiring a new client. So why would we choose to terminate business with one of those clients we worked so hard to acquire and keep?

Well, Paul Brown of the New York Times discusses this in one of his latest blog posts. The fact is that sometimes the customer is not always right.

There are going to be those customers that unfortunately do not fit your business or way of doing business. Sometimes the headache and time spent outweighs the profit potential- at which time we must cut the cord.

Keeping the following things into consideration when deciding whether to go separate ways with a client. This can help preserve your business’ reputation that you have worked so hard to maintain.

Is It Worth It?

For most of us, making a profit is an important and crucial part of sustaining business. If the “tangible and intangible costs of serving the customer outweigh the cash and any good will received from the customer”, it is probably a good time to let go of a customer.

The Benefit of Time

When we constantly have to deal with a nagging customer who has unrealistic expectations, it utilizes resources for our quieter and more deserving customers. Usually, the most unrealistic and rude customers are the least profitable ones- so why take away valuable resources from the ones with the most potential? Similarly, the more negative customers your staff has to deal with will lower company moral and hinder them to provide excellent service to their other customers.

Guide to Cutting the Cord

Once you decide it is time to cut the cord, take the following recommendations into consideration.

  • Stay Professional: Be sure to let your customer go by phone instead of e-mail. Customers should always be treated on a personal level so take the time to personally call them instead of sending an e-mail.
  • Offer Alternatives: Once you have let a customer go, they will still need their needs to be fulfilled from another provider. Offer them a few suggestions.
  • Do not let emotions get the best of you. To get to the point of firing a customer, they have most likely made your or your staff members frustrated or mad. This is not the time to vent that anger. Keeping a calm, rational, and professional demeanor will help the situation.