Redundant Clients

There comes a time in any business when we should do some maintenance and clean out. Over time you tend to gather methods and clients which at some point become redundant. Older methods that are no longer effective must be replaced with newer ones that make more sense from a business point of view. Then there is the second example of things you gather – clients – that at some point you have to stop your association with. It is this one that I am focusing on today.

Every business has had to deal with clients who do not want to settle their accounts, are difficult to get information from, complain when this information is not visible on their websites, or simply do not cooperate. While usually one will try to manage this in the nicest way possible, there comes a time when you have to pull the plug and sever your ties. How do you do this in a way that will not damage your own reputation in the process?

Payments in arears

I have had to do this recently. Three clients who have failed to settle their outstanding accounts, I have had to cut my ties with. There is no realistic way to recover these amounts and to initiate legal action is just not worth the effort. They have been like running a distance race and a stone somehow finds its way into your shoe. You can either continue running, and every step hurts, or you stop, take off your shoe, shake out the stone, put the shoe on again, and go on without the hindrance. Here are some tips on how to deal with them.

• Ensure your paperwork is in order: Are you sure their payments are in arrears? Have you checked that you sent out invoices in advance and followed up on non-payments?
• Proper communication: Have you followed up with the client? What was their response? Do you have records that show your communication with them? Nowadays even WhatsApp is considered an official communication channel.
• Negotiations: Have you tried to negotiate terms with the client? All of us have cashflow problems at some point. However, this should be of a short duration and a client cannot complain each month that they have cashflow problems and use this as an excuse for not paying.
• The final letter of divorce: Ensure that when you finally separate from the client, you do so in writing, on your official letterhead. State only the facts; do not threaten; and leave open an opportunity for the client to return in the future.
• What not to do: Do not argue with the client. Do not prevent the client from accessing their own domain. If they paid for it, they own it. Send them the FTP details, even if you think they will not know what to do with it. Send them a copy of the website's working files (CSS/HTML/PHP/JavaScript).
• Lastly, learn from the experience: Do some introspection. How can you ensure this does not happen again? Where did you maybe make a decision that could have been handled differently?

Running a business is not easy and we can get carried away by emotions. However, emotions never win in the end. Common sense and courtesy do. If you are emotional, think before you hit the send button, else you may regret it and look stupid.