Does this sound familiar…”How many 16 hour days is this project going to take?” “My client has saboteurs working with me on this project,” “This project started with an 
unrealistic deadline and has gotten crazier every day since.” If you have said any of these phrases out loud to yourself recently – you are not alone. Professional service businesses, particularly creative service businesses can really get abused and lose profit margin to rework.
Unanticipated hours spent trying to please a client that is never satisfied can drain you and your business like a vampire. From the countless unnecessary revisions, to the “I don’t know what I want, but I don’t want that” dance or too many people allowed to influence the look and feel of your project. Then there’s the real kicker– the client beat you up on price in the first place. After more than a decade in business, I have seen that devil more than a few times-and now I have strategies to cope.
When it seems like nothing that you do is right, forget about preserving the relationship – save your sanity instead. With a client who just won’t be satisfied no matter what you do, you need to operate defensively.
Smallbizlady’s Rules for Managing Difficult Clients
- Never start work without a signed agreement and at least a 50% deposit.
- Don’t accept less than your standard fee without a good reason.
- Reserve the right to adjust the budget if the scope of the project changes.
- Make sure the budget is significant enough to hire a project manager to help you.
- Have a kickoff to meet all the key stakeholders.
- Create a project timeline and then have the client sign off.
- Develop a detailed project plan with assigned task and deliverables.
- Praise stakeholders openly who are helpful.
- State clearly in your contract agreement, and every time you send over a draft how many business days the client will have to review the draft based on the project timeline.
- Insist on a single point of contact.
- 1 edit, 1 revision -That’s it! All additional changes are billable for time and materials hourly.
- Use a signed work order for revisions. Before additional revisions are made, make the client sign a work order to approve any additional charges.
- Over communicate with status reports.
- Document all communication, just in case you need to prove ridiculous directives after the fact.
If you are a project-based company it may make sense to invest in a project management software/file share program such as GoPlan, Microsoft Sharepoint, or SharedPlan Central. These programs allow you to give restricted access to clients and your project team 24/7. It will also keep you from having 42 emails back and forth about the same project.
Always make time to fill your pipeline. Do not fall into the trap of spending all of your time on one extremely demanding clients to the point where you can’t devote yourself to any new opportunities. Say “no” or “that’s impossible” when necessary.
Take great care of customers, who love your work and acknowledge your dedication and professionalism. They are rare, but they are the backbone of your long-term business success.
You will not love all of your clients; not everyone is a good customer. The great thing about being in business for yourself is that you can move on from difficult clients after their nightmare project is over. Never be afraid to cut your losses and move on.
Have you ever dealt with a difficult client? How did you handle the situation? Share your story in the comments.
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Melinda Emerson is a Veteran Entrepreneur, Small Business Expert and Social Media Coach who hosts #smallbizchat on Twitter. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Melinda’s first book, Be Your Own Boss in 12 months or Less; A Month-by-Month Guide to Start a Business that Works! is scheduled to be released by Adams Media in early 2010.
For more helpful tips to start or grow your small business subscribe to Melinda Emerson’s blog. http://www.succeedasyourownboss.com
I also put a set limit on the number of meetings for each project — both phone and in-person. In my experience, difficult clients are also time-vampires.
When providing graphic design services, I will also specify the number of versions of a logo/brochure/annual report/etc layout the client will see initially, along with the number of subsequent changes allowed. The more boundaries set up in advance, the better!
Amy–
You are right on with your comment. Putting conference call and meeting limits into contracts is another excellent way to protect yourself from those “viper” clients.
Thanks for checking out this blog and leaving a comment.
Best–
Melinda
We may not love supporting all of our clients/customers, but our love for what we do should be what shows! As a result, boldness and the willingness to-not-do whatever it takes, promotes a business to a higher level of respect. I’ve never met a Bentley dealer who responded to the question of: how much can you take off of the asking price? Accepting the idea that not all business is good business indicates your solid belief in what you offer and in what you can do!
Darryl–
You are exactly right! If you do not value your product or service, no one will. Charge what you are worth and do not be afraid to turn down a customer that is not a good customer for you.
Thanks so much or your comment!
Melinda
All roads lead to boundaries! Some clients show us how to let them do their work while we return to doing our own. And some people don’t even get to be clients when we remember it’s okay to say,”we’re not a good match.”
There is a dance we do with difficult clients. How it ends depends on who is leading.
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