When to Say “No” to a Client

Posted 06 Oct 15

You might have been running your business following the rule than ‘any client is a good client’. Saying ‘yes’ to everyone, especially where the money is good, can be tempting.

However, it is easy to overestimate your ability to complete the number of projects you sign up for and soon you might find yourself postponing or failing to deliver the service or product by the agreed deadline. So let's take a look at the reasons why you might need to say “no” to a client.

1. Your Client’s Demands are Too High

Sometimes, the client you are dealing with can be irrationally demanding and you might find yourself focusing too much time and effort on developing one project. If a client expects you to deliver a flawless product overnight, you might need to decline, even if the money they are offering is good. Failing to satisfy your client’s needs and requirements can have a damaging effect on your business reputation, often worse than if you simply decline.

There’s also a similar reason why you might need to refuse the project. If your client has terrible taste and requests a product you would not want your company’s name to appear on, you might need to gently ask them to reconsider and suggest a different version of the same product.

If your client persists and you don’t agree with their choice, it will benefit your company in a long run if you compromise the money for the quality reasons.

2. You Are Lacking Skills or Tools

It’s easy to say “yes” to every opportunity that appears on our way, especially at the very start of your company’s activity. You might be afraid you can’t afford not to accept every client and agree to something you have no skills or tools to produce.

If you don’t think you can deliver the project on time, or the quality of the project will suffer due to your lack of specialised equipment or the help of staff; it is a good decision to decline the offer. It is better to leave your client neutral than make them unhappy with the service you offer.

You might consider suggesting a competitor who can deliver a high standard product and inform your client when your company will be able to meet their requirements in the future.

3. Your Client is Rude

Apart from all the above reasons, there are a few personal behaviours you might want to watch out for when dealing with your client. If they are rude or over-demanding or have a bad reputation amongst your competition, you might want to refuse working with them.

Some clients tend to disappear after you deliver the project without paying for it. Getting involved with clients who do not want to provide them with their personal details or who have no interest in communicating with you, will bring you a lot of unnecessary stress that no amount of money is worth.

If you would like to find out more about business management and how to make the most out of the exciting experience of running your own company, contact our business advisers at Tawanda Accountants.

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