Latest / The Life-First Solopreneur / 214. It’s Not Me, It’s You: How to Break Up with Problem Clients

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214. It’s Not Me, It’s You: How to Break Up with Problem Clients · The Life-First Solopreneur

• 0:00
  Carly Ries: Some clients pay the bills, and others drain your soul. In this episode of the Aspiring Solopreneur, Joe and I tackle a topic we don't talk about enough, knowing when it's time to fire a client. From red flags to graceful exits, we unpack real world strategies for letting go of the people who no longer fit, and we talk about how to do it without burning bridges or losing your mind. So if you've ever had a client who made you question your entire business, this one is for you.
• 0:28
  You're listening to the Aspiring Solopreneur, the podcast for those just taking the bold step or even just thinking about taking that step into the world of solo entrepreneurship. My name is Carly Ries, and my cohost, Joe Rando, and I are your guide to navigating this crazy but awesome journey as a company of one. We take pride in being part of LifeStarr, a digital hub dedicated to all aspects of solopreneurship that has empowered and educated countless solopreneurs looking to build a business that resonates with their life's ambitions. We help people work to live, not live to work. And if you're looking for a get rich quick scheme, this is not the show for you.
• 1:07
  So if you're eager to gain valuable insights from industry experts on running a business the right way the first time around or want to learn from the missteps of solopreneurs who paved the way before you, then stick around. We've got your back because flying solo in business doesn't mean you're alone.
• 1:25
  Carly: We talk about burnout and over committing and all that kind of stuff a lot on this show. And sometimes it's just because you have a problem client. It isn't really necessarily anything that you're doing, but those problem clients do come up. And you, I think, have more experience firing these types of clients than I do.
• 1:43
  So I kinda wanna pick your brain a little bit. I have my 2¢ to weigh in as well. But just to kick things off, what are some red flags that it may actually be time to get rid of these people?
• 1:53
  Joe Rando: Well, I think first, there are two, in my mind, two different kinds of problem clients. There are problem clients that are problems because what they need is not necessarily what you do. A lot of times that comes from when you start, you're kinda trying out different things, and you start doing different things for different people. And then you focus in on what you're really good at or what really works for you, what works for the business. But you've got this hanger on client from before who could be a perfectly nice, wonderful person, and yet, it just doesn't work anymore.
• 2:27
  And those are the tougher ones because they're oftentimes very nice clients. But there's also the ones that are just very difficult. They tend to demand more than they should. They don't, get you what you need in time and then expect you to be on time. There are all kinds of different ways that they can be just completely annoying.
• 2:45
  And, in some ways, those clients are easier to fire because they're unlikable, but it's also harder to do it right for those people because you're just, you know, you're not in a frame of mind to kinda do what you should do, which is, in my book, being honest with them, but being tactful. Right? So if somebody's the biggest jerk in the world and they're yelling at you about something that was not your fault and you turn around and start yelling at them, sure. It'll get rid of them, probably. But by the same token, that can burn a bridge.
• 3:19
  It can follow you around. So there are just reasons not to do that. So keeping it tactful, keep managing your frame of mind in this process is really important. So that's one thing.
• 3:30
  Carly: What's the other thing?
• 3:32
  Joe Rando: Well, I mean, offering a transition plan. If you have let's say that, especially for these clients that you're working with that just don't match your model anymore. If you can find somebody else that you think would be really great for them, for what they need, Offering an introduction shows that you care. You know, first, explaining to them why it doesn't work anymore, that you're not really gonna give them what they need anymore because of what you're doing with your business. You're one person, blah blah blah. then offer but Sally over here is doing exactly what you need, and she's great. I know her, and you should have a conversation. That helps a lot because now you're not just cutting them loose. You're saying, hey. Here I've got your back. Here's somebody else. I think that's important. I mean, do you see anything there that doesn't sound right to you?
• 4:17
  Carly: No. That sounds definitely right. but even in terms of identifying when to let go, I think you just have to do, like, a gut check. And sometimes the unfortunate thing is, what should people do if this client is bringing in a good paycheck for them that they rely on?
• 4:37
  Joe Rando: Well, that's a great point. I mean, it may be deal with it for now. But the question is, what you really wanna look at is to look at the amount of hours that you're working and look at the revenue you're bringing in. Divide the revenue that they're paying by the number of hours it's taking to deliver that and see how that compares with your core business or with your other, good customers. And that'll tell a story a lot of times.
• 5:06
  I mean, if you're making more per hour with them and they're not a difficult client, they're not making you, not sleep at night. But if they're just a bad fit and you're making more per hour with them than you are with the other people, you might be focusing on the wrong business. Right? But, in reality, you're probably gonna find that you're putting in a lot more hours to make, each dollar. And that's why it's a good reason to think it through and think about maybe moving on to something else.
• 5:33
  But, sometimes you can't afford to do that right away. And, sometimes it helps to build up your pipeline a little bit, get some people in the pipeline as you get confident you're gonna close them, then have this conversation. But it might mean a lean month. You know? It might mean a little bit of a lean month.
• 5:49
  But if you don't align your clients with your business, gets very hard. I always told this story about we had this customer come at my last startup, and they wanted to give us basically a better part of a million dollars to do something for them, but it was a one off. It wasn't gonna move our products forward. It wasn't gonna do anything but tie us up doing things that weren't gonna grow the business, and we walked away from it because it wasn't worth it. I mean, this was an employee based company.
• 6:19
  There were a lot of people, but it wasn't worth taking everybody's focus off of the ball to do this. And you're in the same situation as a solopreneur. If you're trying to build a business that serves your life that doesn't eat, eighty hours a week, you've got to have a product that you offer that's relatively standardized to some degree that you can deliver comfortably, and not spend too many hours doing something that doesn't help overall.
• 6:43
  Carly: Yeah. Exactly. I also just wanna circle back, because I think the big thing to avoid some of the big hiccups is just to have this all in the contract. Like when you're putting the scope of work together with this client, make sure you have in there that you can back out, which that they can back out, that you're not contractually obligated to anything.
• 7:02
  Because at the beginning of a client relationship, it can be rainbows and ponies, and that changes. So I think also just making sure that you're not contractually obligated to stay with them no matter what.
• 7:14
  Joe Rando: That's a really great point. I'm embarrassed that I didn't make it because I'm the contract guy.
• 7:20
  Carly: You are the contract guy!
• 7:23
  Joe Rando: no, I'd say that's a really great point. But, you should definitely always have those outs for you it shouldn't be I can quit on, days notice, but, you know, thirty days notice, sixty days, whatever makes sense for that particular business you're in. And, you always wanna be able to get out, and the client's gonna want that too. They're gonna wanna be able to say this isn't working. My business changed, whatever it is, and be able to get out. I know it's not fun, and if somebody agrees to a one year contract, you know, you gotta live with it. And they have to live with it, you have to live with it. But, if you have something where, it's month to month, then that's a lot easier to get out of. But, yeah, it's just very good to have everything in writing.
• 8:06
  Carly: Absolutely. Well, that is all I have. Anything else you want to add?
• 8:11
  Joe Rando: Just to try really hard to stay gracious. With some of these people, they're terrible. They're not spending, much money, and they're being very demanding on your time, and they expect more than they ever should have expected given your statement of work. And you could be really tempting just to let them have it, and it usually is not worth doing.
• 8:35
  Just be the grown up in the room, Be nice about it. Bite your tongue and move on and find better clients.
• 8:43
  Carly: Well said. That is a great note to end on. Well, listeners, thank you so much for tuning in. As always, please leave that five star review. Subscribe on your favorite podcast platform including YouTube.
• 8:55
  And share this episode with a friend. We so, so, so appreciate it. And we will see you next time on the Aspiring Solopreneur. You may be going solo in business, but that doesn't mean you're alone. In fact, millions of people are in your shoes, running a one person business and figuring it out as they go.
• 9:12
  So why not connect with them and learn from each other's successes and failures? At LifeStarr, we're creating a one person business community where you can go to meet and get advice from other solopreneurs. Be sure to join in on the conversations at community.lifestarr.com.