Interesting Articles

Some people in business will say that there is no such thing as a bad paying customer, some of these same people also believe that there is no publicity that is bad. There is nothing that could be less true for anyone hoping to build a sustainable, growing business. As the owner of the business you need to be the one choosing your own customers from the pool of potential customers. You heard it right, you are the one that should be in charge of choosing customers!

Doesn't it make sense to accept business no matter who it comes from, as long as they are willing to give you their money? In my opinion this question can be clearly and emphatically answered in the negative. With business there is no shortage of short sightedness when considering ways of increasing cash flow, and this acceptance of any customer is one type of short sightedness. Most people agree that misleading and manipulating people into purchasing your products is not a wise way to run a business. However, there are many business owners that are otherwise rational that assume that they can't afford to turn away business, no matter how it comes. This temptation is particularly strong when first starting out in the business world and money is tight, but the long term risk to the success of your business is also at its greatest at this point.

What reason is there to be picky about deciding on a customer base? There is an obvious answer that anyone who has run a business would know. Some people are unable to afford your services but that will not stop them from trying to buy from you. A good example of this is the 2007 -2008 mortgage crisis. It resulted from the banking industry thinking that they could make quick money from sub-prime borrowers. Trying to make money off a high risk customer base will often come back to bite you. The entire economy has gone into a recession as a result of it. IT would be just rewards if it weren't for the ripple effect. Small businesses go down this road and if you choose to accept questionable customers as well it is likely to be a poor business decision for you. Collection agencies might be in your future.

Another group of customers who many business owners will avoid are those that are seen as "problem" customers. You know the ones. They complain about everyone and everything in their lives. Nothing you can do will meet their unrealistic expectations of what you (and the rest of the world) owe them. Often times this type of customer can be identified by their angry demeanor and complaints about other competitors in your industry. If you spot them early it is best to pass them by and let someone else deal with the headaches. While they may be well able to pay you, working with such people is likely to be a nightmare not worth experiencing for most business owners. The art here is identifying them as early as possible so you can make a decision. The hard part is knowing how much of their complaints about your competitors may be actually accurate and presents an opportunity for you. Being aware of the reputations of others in your business can help greatly in this regard.

The customer types previously mentioned are quite often easily overlooked. But there also is another group of people you should not deal with. These are the people for who your products and services have no relevance. Many companies feel that it is the customer's job to decide what they are going to purchase and that the service or goods provider needs to sell as much as they can to the prospective buyer. Doing business in this manner is short-sighted and can stunt business growth badly. If you choose to sell something to a customer who winds up disappointed in the end, they will often blame you as a result. It is better business to simply state up front that your services do not meet their particular needs and forgo a sale as a result. By clearly describing your product or service in unambiguous terms with out any hype, you can avoid making a poor sale. Tell the customer clearly wheat you provide and give them the information that they need to choose for themselves whether to buy your product or not. Talk about their needs with them as well and determine if what they think they want actually meshes with your product. You may know of another product or service that would better meet their needs, if at all. If your business cannot meet their goals, be sure to refer them to someone who can. This approach often results in future sales when the customer later returns to you when what they need is better aligned with your products or services.