If you’re not new to the business world, you probably already know how to attract more clients. However, eventually, you’ll have to learn how to fire clients as well. And because firing a client is just as unpleasant as divorce, you ought to be careful.
If you’re the charming, funny boss who’s always friendly with clients and co-workers, or even if you’re the strictly professional but fair type, you’ll hate firing clients. These breakups usually come with a lot of drama. When not approached rightly, they might hurt your reputation and start rumors that you have a toxic company culture, or you’re a bad leader. And no entrepreneur wants that.
Worry not, because there’s a solution for everything. You can fire a client and keep your reputation pristine.
Jump directly to:
1. Find the appropriate time
2. Review your contract
3. Be expensive
4. Put your best foot forward
5. Give them time to make arrangements
6. Be legally covered
7. Treat the process as you are leaving a job
8. Give another chance
9. Shift the responsibility
10. Wait until the contract expires
11. Discuss it in person
12. Extend your gratitude
13. Be respectful
14. Be careful afterward
15. Explain it if it’s a win-win situation
16. Be direct but professional
16 tips for firing a client drama-free
To make sure you get the best advice on how to fire a client, we turned to entrepreneurs who had experience in the breakup department. Here are their stories from which you can draw conclusions and pick the best approach next time you’re dealing with firing a client.
Find the appropriate time
Tanner Arnold, President, and CEO of Revelation Machinery
Review your contract
Similarly, be certain that you won’t be in violation of the contract if you don’t deliver what you promised. Your working relationship may often be so bad that you have no choice but to bite the bullet and terminate your deal, accepting any penalties that might be imposed. It’s up to you to make the call, but it’s always a good idea to know what you’re giving up before firing a client.
Jake Smith, Managing Director at Absolute Reg
Be Expensive
Mike Dragan, COO at Streams Live
Put your best foot forward
So I’ve had to trim some clients because of change requests in the past and expectations that weren’t aligned. Here’s my advice.
There are many different reasons for firing a client, but it’s never good to end with animosity. Whatever the difference, put your best foot forward, provide any work you did and information that might help them to succeed in the future. Do your best to have a phone call and let them know you are going in a different direction.
George Kocher, CEO at Brand North
Provide them with time to make arrangements
This is useful in situations where you’re finding the client is commanding more time and attention from staff than their contract is worth, and has allowed us to avoid confrontation and long-term bad will.
Jay York, CEO and Founder of Grove Brands
Be legally covered
Rolf Bax, Chief Human Resources Officer at Resume
Treat the process as you are leaving a job
Markus Albert, Managing Director at Eat First
Give another chance
The first thing you should ask yourself is whether there’s any chance of salvaging the relationship. If your client just wants to nitpick about tiny details or has started taking your work for granted, it might be time to bring things to an end.
Abby Ha, Head of Marketing and Business Development at WellPCB
Shift the responsibility
Never accuse or insult the customer. And if it’s their fault, attempt to shift the responsibility elsewhere. Do not let them go before their project is completed. Or, at the very least, without specifying the measures necessary to transfer it to whoever would be dealing for the customer next.
Olivia Tan, Co-Founder at CocoFax
Wait until the contract expires
Waiting until the contract expires before dismissing a customer will help prevent awkward conversations and have a way out for the company. You have the option of not renewing their deal. The disadvantage is that you will also have to work for the difficult customer until the contract expires.
Alan Harder, Mortgage Broker at Alan Harder
Discuss it in person or over the phone
• Check your contract and take a look at the terms of your agreement.
• Discuss it in person or over the phone, but never via email or text message.
• Do not blame the client (although it’s their fault).
• Maintain your professional tone.
• Be firm about your decision. Do not be swayed.
• Recommend them to another company.
Ryan Smith, Owner of Ant and Garden Organic Pest Control
Extend your gratitude for their efforts
Using words politely is what matters most too. The calmness and composure affect the delivery of terrible news to the client. You do not want to step on the wrong foot. Take it slowly until the clients themselves realize you are ending the partnership with them. The whole idea is all about reaching out, pointing out mistakes/issues, resolving and settling through parting ways.
Isabella Zhou, Marketing Lead at Trustana
Be respectful
When I fired my clients, I made sure to keep my cool. I was straightforward, candid, but respectful. I expressed why they weren’t a good fit for our team and tried to let them go on a positive note. Of course, this wasn’t always the outcome, but maintaining professionalism comes with the job.
Riya Jain, Founder of Namo Padmavati
Be careful afterward
I once told a client that I had to reduce my hours due to childcare issues (which was partially true anyway, but they were also an awful client to work with), and that therefore I wouldn’t be able to work with them any longer. They were understanding and didn’t fight it or see it as a problem.
The only thing I’ll say: just be very careful that they don’t find out later on that you’re looking for work, especially in the short-term – otherwise the lie will be revealed and it could reflect poorly on you.
Steve Morgan, Freelance SEO Consultant at Morgan Online Marketing
Explain it if it’s a win-win situation
In this type of situation, I’ve found it best to point out the ways in which my company and the client are not a good fit. If it’s presented in a way where you point out specific examples, and show how there wasn’t a positive outcome, it can help your client understand that they may need to work with a different type or style of a company. So that, in the end, you’re actually doing them a favor!
Josh Stomel, Founder of Turbo Finance
Be direct but professional
I recommend being direct but professional. For example, you can say: “Our team has decided that your company is not the right fit for us at the moment.” Be sure to outline the details of the termination, wrapping up any loose ends for projects. You do not need to go into details of why you are firing them. Keep it brief, direct, and professional. It’s not personal, it’s business.
Eropa Stein, Founder and CEO of Hyre
Conclusion
Most of the time there are ways to build and maintain a strong client relationship, so make sure that you gave your client a chance to perform better, and that your conflict is not a result of a misunderstanding. If none of that is the issue then it’s probably time to break up the relationship.
Firing a client is unpleasant but it is possible to end on good terms and remove any hard feelings between. Often times it can be the best decision for both of you, especially when more bad than good comes out of your partnership.
More must-read stories from Enterprise League:
- Find out everything you need to know about the 10 Ds of entrepreneurship.
- What it takes to start a wholesale business from scratch?
- Dealing with employee conflict? Here are 10 ways to help you handle it.
- 26 hiring mistakes employers make and how to prevent them.
- Benefits of owning a business according to business owners.
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