Choose your market or craft it?

Sometimes you choose your market, and sometimes it chooses you. Today, we get a little of both.

A discussion with some software business owners prompted this piece, but you should stick around even if you aren’t in the software business – because these problems are universal no matter what business you’re in.

During these discussions, there was a lot of talk about cheap clients.

The discussion started with the group lamenting that their clients are constantly falling back on their lack of a budget as the reason they can’t do things.

The comments started like this:

  • “Our clients say they have no money for tech support.”
  • “Our clients say they have no money for newer hardware, so their 10 year old XP machines will have to do.”
  • Our clients don’t have (this and that).
  • Our clients can’t do (this or that).

The conversation continued for a bit, discussing the kinds of things you’d prefer to avoid when seeking clients.

Thing is, many small businesses are in a position where they can’t avoid clients like this, at least not when they’re small and getting starting.

No matter what market you’re in, you have clients and prospects that have these issues – or say they do. For many business owners, it’s pretty frustrating.

Dump ’em?

Normally, I would counsel you to find a way to sort these guys out from the rest. Actually, I’d still suggest that to a fair number of my clients, but not everyone is in a position to fire a bunch of customers.

Even if you are in a position to shed those customers, you need to be selective about how to do it and even then, do so carefully and kindly.

Why selective? Because a sizable handful of those customers will figure it out, get out of bootstrapping mode and become the best clients you’ve ever had. Your job is figuring out which ones are the keepers. We talk about that fairly often.

What we don’t often discuss is what to do if you’re the one who has to keep most (if not all) of these customers – and what to do about it.

By force or by choice

What happens if you decide to (or must) work with them regardless of their situation?  Not everyone can get out of this situation easily.

Perhaps you manage part of (or work in) a business that this kind of client and you have no control over the situation.

If you own the business, perhaps it’s a situation you’ve unintentionally created over the long haul and it’s either hitting you square in the forehead and wallet simultaneously that it’s an expensive situation, or you’ve known about it all along and are now managing to come up for air long enough to take some action to deal with it.

Either way, it needs to be addressed.

Long time readers would probably guess that my plan “A” would be to execute my time-hardened battle plan to help you help them transform from mere customers to good clients. I don’t say “mere customers” lightly. It isn’t a meaningless smear, as there is a serious difference between mere customers and good clients.

Thing is, plan A has two benefits: While it’ll help some of them become the clients you want, it’ll also tell you who the doers are.

Even if they aren’t good at some (many?) of the things you put in front of them, the doers will try almost everything. Keep them around unless they drive you absolutely crazy. I mean visit your house at 11pm on a Sunday night kind-of-crazy.

Why? Because those are the guys who won’t quit trying. You need clients like that and they need you.

What about the rest?

The doers will listen and execute based on what you tell them. Many of them will get it and grow into the kind of client you wanted in the first place.

The rest? Well, those are the ones that you can part with once you’ve done your transformation work on the rest…unless you just can’t let them go.

If you can’t, then ponder what you’re willing to do about it. They consume time, effort and money that might be better leveraged on other projects. Can you help them? Do you have time to help them? Will they listen if you offer help? (Their effort on Plan A teaches that).

Give them a chance, then make a decision.