{"id":15555,"date":"2022-09-27T17:00:05","date_gmt":"2022-09-27T17:00:05","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/ending-customer-relationships-for-growth-in-your-atlanta-business\/"},"modified":"2022-09-27T17:00:05","modified_gmt":"2022-09-27T17:00:05","slug":"ending-customer-relationships-for-growth-in-your-atlanta-business","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2022\/09\/ending-customer-relationships-for-growth-in-your-atlanta-business\/","title":{"rendered":"Ending Customer Relationships for Growth in Your Atlanta Business"},"content":{"rendered":"
\n

With the way that the economy is going, inflation, the market gyrations, etc … ANY business seems like good business.<\/p>\n

Until it isn’t.<\/p>\n

Consider …<\/p>\n

Have you ever been in a Atlanta store when a customer starts yelling at the employee behind the counter for something tiny? The customer makes demands and throws an adult-sized temper tantrum to get their way and the worker complies because … well, the customer\u2019s always right \u2026 right? <\/i><\/p>\n

That kind of mindset seems to persist in our free economy, and I\u2019ve heard stories like this from various clients. They\u2019re frustrated with these \u201cKarens\u201d but don\u2019t seem to feel like they can let them go. <\/p>\n

Maybe you don\u2019t have customers yelling at your employees (or maybe you do?), but you do have people who put a serious drain on your company.<\/p>\n

And finding a smart way to cut them out of your customer base is a wonderful thing<\/strong>. I HIGHLY recommend you do this, and soon.<\/p>\n

It can be hard to cut those people off because you fear jeopardizing your revenue. Or maybe you\u2019ve worked with them a long time or have a personal relationship with them and don\u2019t want to lose that connection.<\/p>\n

But may I pose to you that it\u2019s time to shake off that mentality, to move past those types of clients, and get a bigger vision for the kind of customers you really <\/i>want to serve in your Atlanta business? <\/p>\n

And though this isn’t our normal client conversation fare, I’m happy to talk more about this with you. But what we’re REALLY here for is to get your business finances to where you can see the right leading (and trailing) indicators for financial health. Let’s have THAT conversation:
calendly.com\/mark-perlberg-cpa<\/a><\/strong> <\/p>\n

Pruning out the bad to make room for new growth in your business is absolutely something to look at. Here are further thoughts to get you going…<\/p>\n

Ending Customer Relationships for Growth in Your Atlanta Business<\/strong><\/span>
\u201cDwelling on the negative simply contributes to its power.\u201d – Shirley MacLaine <\/i><\/span><\/p>\n

Ever take care of a plant? At some point, you probably noticed brown leaves and dead branches. You carefully picked them off or cut them away, and not long after, you saw fresh green sprouts appear. <\/span><\/p>\n

Easy to see where we\u2019re going with this: If your business was that plant, which customers would the dead stuff be? <\/span><\/p>\n

Losing customers goes against the grain of our small business sense. But when it comes to saying goodbye, not all customers are created equal. How do you pinpoint deadwood customers \u2013 and what do you do once you find them? <\/span><\/p>\n

<\/span>Ending customer relationships step #1: <\/strong><\/span><\/span>Discovering the bad apples<\/strong><\/span><\/p>\n

Bad customers at least do you the favor of waving red flags, though sometimes they may not look red at first glance. <\/span><\/p>\n

Your top funnel and your bottom line, for instance, could be confusing you. A given customer may pump a lot of money through your door \u2013 but by the time they\u2019re done using your company\u2019s resources, how much of that money becomes real profit? <\/i><\/span><\/p>\n

Assuming your business model hasn\u2019t changed and that a given tough customer still fits the profile of someone you can service, another red flag can be that you and your staff spend too much time appeasing this customer.<\/i> Customers who are always demanding but never return your calls, emails, or texts and who seem to make it their life\u2019s mission to be unhappy with your company (yet who never leave \u2026) are just a drain.<\/span><\/p>\n

Check your books.<\/i> What expensive staff hours and overhead do they consume, and how much do they pay you for that? What\u2019s the cost to you of goods sold? This will take some sharp looking at detailed numbers and can be more of an art than a science, but it\u2019ll be worth it if you finally spot a bad apple in your barrel. <\/span><\/p>\n

Another way to isolate the bad is to recognize the good.<\/i> Which customers seem self-sufficient and don\u2019t overburden your support team? Do they understand your side of the problem and don\u2019t have a default of nitpicking over price? Do they talk you up in their own networks? <\/span><\/p>\n

<\/span>Ending customer relationships step #2: <\/strong><\/span><\/span>What do I do now?<\/strong><\/span><\/p>\n

Like we said, it goes against the grain for all of us to feel giddy about dumping customers. Decide solely based on figures discussed above. There\u2019s no need to get rid of a customer out of anger \u2013 or keep one out of sentimentality. <\/span><\/p>\n

Raise prices.<\/i> There\u2019s no need to jack up your prices across the board to make up for what one bad customer costs you. If you need to raise prices, consider doing it selectively. Start with raising them on just your unprofitable customer. That may solve the problem for you. <\/span><\/p>\n

Reassess.<\/i> Is the deal you have with this customer the one you signed on for? For instance, did you once give a discount for a volume of sales that never came to be? Has their management changed and is no longer so easy to deal with? <\/span><\/p>\n

Sell them more<\/i>. Chances are excellent that they\u2019re unaware of all your company can offer \u2013 another service or product might suddenly turn into a profitable customer. <\/span><\/p>\n

Educate them.<\/i> Half the problem for an unprofitable client may be that they just don\u2019t know how to use your product. Remember that nobody likes admitting when they need training. (This can work especially well with B2B customers.) <\/span><\/p>\n

<\/span>Ending customer relationships step #3: <\/strong><\/span><\/span>Saying goodbye<\/strong><\/span><\/p>\n

Raising the price and cutting the service will probably get them out the door.<\/span><\/p>\n

For one, mentally prepare for them to bolt for your competition. You might even expect to hear some negative comments. No, we wouldn\u2019t like it, either, but that\u2019s just business. (Don\u2019t forget to wish your competitor lots of luck \u2026) <\/span><\/p>\n

Such a customer\u2019s departure will naturally inspire you to find new customers \u2013 a diversified customer base is almost always good \u2013 and remember that it\u2019s better these days to lose one difficult customer than lose the staffers who are fed up with dealing with them.<\/span><\/p>\n

When shouldn\u2019t<\/i> you get rid of a bad customer? <\/i>This is a gray area. For example, don\u2019t be quick to jettison leaders in your industry or community without careful thought. Tracking referrals and other marketing efforts comes in handy here: Did this customer get you other customers? Again (and as always), balance the cost versus the profit.<\/span><\/p>\n

The right kind of unprofitable customer might actually be worth the effort to keep.<\/span><\/p>\n

Having peace of mind in your Atlanta business and serving the right kind of clients mean joy for the future you are building. And we\u2019re here to help give you insight on managing (and ending) customer relationships for your financial betterment. <\/span><\/p>\n

 <\/p>\n

Dedicated to helping you grow,<\/p>\n

Mark Perlberg<\/strong>
<\/strong>
Mark Perlberg CPA PLLC<\/strong><\/p>\n

 <\/p>\n

+++<\/p>\n<\/p>\n<\/div>\n