Firing a client is usually a difficult decision. Though, sometimes it’s the best course of action, it’s hard to let go of a lucrative relationship. But, when it’s intolerable, and not particularly worthwhile monetarily, moving on is generally the best. However, there are times when you might reconsider. If so, you’ll need to take certain precautions before committing to doing business again. Read on to learn more about how to determine if rehiring a fired client is really the right thing to do.
Most Common Considerations
Perhaps the individual has re-approached you with a plea to resume your working relationship. Or, you're attempting to rebuild your book of business after experiencing a negative impact from the pandemic shutdowns. Whatever the reason, there are, of course, some considerations you'll have to factor into your decision. These begin with trusting your gut instinct.
When you have a business, satisfied clients are essential to your continuous success. Knowing your ideal client and their particular needs is critical to your success. However, pursuing non-ideal ones can kill your business. It pays to be picky about which clients you choose to work with. --Entrepreneur.com
The little inner voice in your head can be an extraordinarily valuable tool. It's a resource in your consciousness that helps you to determine to take one action or another. So, definitely give it it's due because it will most likely point you in the right direction.
Also, you should take at least a little time to revisit your past with this individual. It's helpful to make a list of pros and cons, and then compare and contrast those with the relationship going forward, particularly if you're confident that things will be different this time.
What's more, it's worth warning that if you're doing this solely for the money, it's probably going to lead to another bad outcome. So, understand that you should have other valid reasons for re-establishing the business relationship.
How to Re-Engage an Old Client
Whether you're sincerely convinced that this person is committed to a new way of doing things, or you get a completely different feeling than before, these could be false positives. In other words, do not let the potential outweigh the reality. Fortunately, there are some precautionary measures you can take, like the following:
- Listen very carefully. You'll obviously talk to the individual about doing business again and this is a golden opportunity to listen carefully for telltale warning signs that it's not going to be a positive experience. So, when you do discuss your possible resumption of doing business together, listen and take some mental or written notes about his or her attitude, they are overall enthusiasm, and commitment to a mutually beneficial relationship.
- Talk to other businesses. Just speaking with the individual might not be enough to give you a clear picture. We've all experienced someone who has promised to change this or that, only to be let down. Take a little time to talk to other companies that are currently doing business with this individual and you'll probably learn quite a lot from those conversations. Just a little input from your peers could well be enough to help you make the right decision.
- Establish a clear trial period. Of course, If the previous experience was a negative one, you shouldn't repeat the mistakes of the past. Fortunately, because you have experienced this relationship before, you probably are very well aware of the frustrations. Use this information to establish a trial. And this way, your not setting yourself up for a big mistake.
What other suggestions do you have for dealing with previously bad clients as a business owner? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective!
Interested in learning more about business? Then just visit Waters Business Consulting Group.
Business Pros and Cons of Furloughing Employees
April 14, 2020
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Thinking about furloughing rather than laying off your employees? It’s an all-too-common conundrum right now, amidst the coronavirus pandemic shutdown. But, it’s something that a large majority of businesses must consider, given the present and quite uncertain circumstances. Read on to learn more about the upsides and downsides of furloughing your employees. Employee Furlough Disadvantages We’ll begin with the most problematic cons of furloughing team members. Doing so puts your company at-risk for permanently losing your top talent. Furloughs also undermine employee morale and may even damage it further, and if you have applied for the SBA Paycheck Protection Program, one of the conditions for the loan to be forgiven, is that you keep your employees on your payroll. An employee furlough is a mandatory suspension from work without pay. It can be as brief or as long as the employer wants. Furloughs can take place in both public and private institutions. An organization will furlough employees as a cost-saving measure when it doesn’t want to lay off staff but lacks the resources to continue paying them. —The Street.com Then, there’s the trouble of re-opening your business. Even after a short-term period, it takes a substantial amount of time to get things back up and running. Additionally, the cost savings might not be as significant as you might believe because it’s for a short time frame and not necessarily long enough to be worthwhile (though it can certainly prove helpful). Employee Furlough Advantages Since furloughs are happening in many industries right now, the temporary change can’t be all bad. There are advantages to furloughing employees, like the following: Avoids layoffs. The most obvious upside to going with furloughs instead of laying people off is that you avoid the latter. In other words, you aren’t terminating team members. Instead, you’re temporarily removing them from the business without pay. Reduces rehiring. Another benefit of furloughs is the fact that you won’t have to go through the trouble of rebuilding your workforce from scratch. Rather, you can just reassemble your team, either one-by-one or in small groups. Saves compensation costs. Of course, when you furlough employees, you don’t pay their wages or salaries. Since labor is most typically the largest business expense, this can really help your company financially. (Though, you may still opt to furnish them with benefits during their furlough period.) It allows you to better plan. Yet another benefit of furloughing instead of firing employees is that you can formulate a more workable plan during that time. The longer it goes on, the better grasp you’ll have of what to keep and what to jettison. To put it another way, you can use the opportunity to streamline things in order to make your business more productive and more profitable. What other business pros and cons of furloughs would include? Please comment and share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.
