What Makes a Good Client?

Yvonne Cartwright
Bellingham Business Journal
June 2003

I've written about this before, but it was quite some time ago - and I have had more than one recent conversation with other business owners that encourages me to bring the topic up again.

What makes a "good client" or customer? What I've found owning and managing my own marketing, advertising and design firm in Bellingham is that many of the experiences I've had are, across the board, the same as any other business in Whatcom County.

If you own your own Bellingham business, or have managed a business from it's start-up phase, you will recognize the evolutionary process that most of us have gone through. New businesses start out hungry and a little scared - they accept almost any work that is offered to them. They either ignore, or are as yet unaware of any "red flags" concerning the actual value of the work - red flags that they will eventually pay very close attention to. One common denominator of most new businesses is that quantity - not quality - of work accepted is what keeps them afloat. New businesses are usually so paranoid about not succeeding that they are willing to work with clients/customers that they wouldn't touch with a ten foot pole once they feel "stabilized".

When that occurs, the "still-new but learning a lot" business owner or manager takes the tentative step of turning down occasional unsavory jobs, only to find hat it helps, doesn't hurt, their bottom line. They begin spending more time "qualifying" clients based on their experiences.

There's nothing wrong with this evolution, except that it takes time. So I'm offering some suggestions to speed up the process by learning some of the factors necessary to effectively "qualify" potential clients early on. The sooner a business can learn how to recognize which clients or customers are desirable, the sooner they can take control of their business. And the more stable and profitable the will become.

The following guidelines work for most businesses. If a potential client or customer comes your way that can't pass any one of them, avoid the inevitable disappointment (and even worse, lack of payment) they will cause. Newer businesses will think that following the guidelines carries some short-term risk, but I'll tell you -- it nearly always pays off over the long-term. Work that can't qualify usually diverts effort away from that which is more rewarding; it saps creative energy; it lowers self esteem; and it reduces the time available to pursue better clients.

1) They are a good fit with your talent and skills.
Regardless of how much creativity and versatility you offer, you are better suited for some clients than others. The closer your talents and skills match a client's needs, the more enjoyable and profitable their projects will be. Concentrate on clients who are most appropriate for your unique combination of talent, service, and experience.

2) There are few negotiation hassles.
Negotiation is, and should be, a factor in every business transaction involving service. It should be characterized by a friendly and realistic give-and-take discussion, not by haggling over price or excessive demands. Clients who haggle demonstrate a lack of understanding of what you do, or worse - a lack of appreciation for what you bring to the table. Either way, it portends an unrewarding experience.

3) You don't have to educate them.
You are not in the education business. Clients who need to learn the basics always do so at your expense. Unless there is a clear payoff down the road, set aside any tendencies ou may have to instruct uninformed clients about the your industry's process. Stick to clients who are already informed.

4) You enjoy them, they appreciate you.
The work is more satisfying, the quality goes up, and the client becomes easier to please. The best client relationships are ones where there is mutual like and appreciation. You solve their problems, they provide more and better opportunities to work together.

5) They match your long-term goals.
What do you want your business to be ten years from now? The type of clients you work with today will affect the future course of your business. Take charge by directing your future business, rather than letting your business direct your future.

Most important of all....

6) Their work will be profitable.
Fun...challenge...prestige...satisfaction...creative freedom...peer recognition...personal chemistry - these are all important aspects of a good client relationship. But nothing is more important than the profitability of the work - from actually collecting on the invoice to being able to charge for value.

Every business I know has, at one time or another, not been paid for the services they have rendered. It is terribly unfair, it is hugely unethical, and it makes an enormous statement about the company that engages in this kind of practice. Sometimes you just don't see it coming; other times you will kick yourself because you should have asked for money down, and didn't. Regardless, it does happen. And unfortunately, there's not alot you can do about it - except to remember to stick to your own policies, which should include required money down on all jobs you do. No exceptions.

Without policies regarding client qualification, eventually you won't have a business. And then, nothing else will matter.

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