How do I know if I should fire a client?
As home care agency owners, the concept of firing a client practically goes against everything that we believe to be true.
After all, we are in a service industry, and so we’re committed to providing exceptional care to each and every client that we serve. And in many ways, telling an elderly client that we are no longer able to help them can feel like we’re letting them down.
Even when we take emotions out of the equation and put on our objective small business owner hat, we never want to voluntarily turn away a sales opportunity.
But part of being a good business person is also being aware of our limitations. We must recognize that not every client is going to be a good fit for us and vice versa.
Unfortunately, knowing when it’s time to fire a client is rarely cut and dry.
Sure, there are some circumstances (e.g. if the client is abusive, if the client’s home is an unsafe environment for a caregiver, or due to lack of payment) that make this an easy decision.
However, most of the time, knowing when you should fire a client feels a lot like Supreme Court Justice Potter Stewart’s famous response when he was asked to define pornography: “I know it when I see it.”
A good rule of thumb to keep in mind is the Pareto principle, commonly known as the 80/20 rule. This rule effectively states that in most situations, 80 percent of your results will derive from 20 percent of your efforts.
In business, we often apply this principle to sales. 80 percent of many organizations’ gross sales often come from 20 percent of their accounts.
But it doesn’t stop at sales.
80 percent of your problems will often come from 20 percent of your clients. And sometimes, it will feel like 100 percent of your headaches come from one single client.
No matter what you do, some clients will never be satisfied and can become a drain on you and your team. If you’re spending 80 percent of your time helping one client, then inevitably the majority of your clients are not receiving the attention that they deserve.
So, next time you find yourself spending all of your time and effort trying to keep one client happy, remember that your best option may be to fire that client before your other clients fire you.
**Please note that many states have specific laws regarding how you can fire a client, including whether the client should be notified in writing and how much notice you must provide, so always refer to your state and local regulations before doing so.
Related: What's a good way to tell clients that we're raising rates?