The good thing about being an entrepreneur is that you get to be your own boss. The bad thing about being an entrepreneur is that every client is your boss. When you have a job, you generally have one boss, in business every client is your boss. You are not working for a raise; you are hoping to get a long-term opportunity. Anyone will buy something once; you want your client to buy over and over again — from you.
So how do you manage your new bosses? Customers come in three types: those that know exactly what they want, those that know only what they don’t want and the dream client who looks to you for your expertise to solve their business challenge. The dream client comes along two to three times at most in any business. So be sure you are prepared for client option one or two. No matter which kind of client you have the best thing that you can do for your client is carefully manage their expectations. Here are some standard practices you should develop for client management.
- Develop a detailed project plan
- Create a listserv for all key players involved in the project.
- Over communicate with weekly status reports
- Anytime there’s a meeting or conference call immediately follow-up with an email recapping the conversation and any action items and delivery dates.
If your client makes a request that changes the scope of a project, never say no. Just explain to the client how this new request will add to their budget and change the delivery timeline. Be careful not to act like you are not flexible. Clients pay for convenience and to have problems solved. Clients will change their mind, especially those that do not know what they want. You must make sure your fee is high enough to include covering these costs. Most importantly, never show your clients that you are overwhelmed or frustrated. Be aware that clients’ staff may sabotage you, too.
So what do you do when there is a problem? When you are struggling to communicate a roadblock that your client has created, never communicate about a problem in writing. Request a phone conversation or a better option… which is a face-to-face meeting. You can’t communicate intent in writing. Talking directly to your clients is always the best way to solve any problem. If you or your subcontractors are the problem, it is best to communicate with the client about any delays or mishaps before you miss a deadline. These are the most difficult conversations to have, but when you are the boss, you have to take responsibility for any mistakes or problems and — make it right for the customer.
So how do you make it right for the customer? It depends on how big of a mistake you made. Here are a few suggestions:
- Respond immediately with an action plan
- Ask for another chance to do a project or ship additional merchandise.
- Offer a heavy discount on future purchases
- Offer to refund all or a portion of your fee.
Your goal should be to make sure your client walks away thinking you did everything you could to fix the problem. A happy client is a repeat customer who will be an ambassador for your product or service.
Do you have any suggestions for making nice with customers? Leave me a comment.
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Melinda Emerson “SmallBizLady” 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, Become Your Own Boss in12 Months is scheduled to be released by Adams Media in March 2010.
If you’re ready to start or grow your small business subscribe to Melinda Emerson’s blog at www.succeedasyourownboss.com
This is an excellent article!!! Great job Melinda
Marquesa—
Thank you for taking the time to leave me a comment.
My best to you.
Melinda
These are all great tips. I can add one more. Make sure you haver a very detailed “Scope of Work” section in your contract before you begin a project and a clause that says if the “Scope of Work” changes from what was originally agreed upon, there will be a corresponding change in the fee and delivery date. Also, if this is your first assignment with the client, try to get a retainer fee up front (usually one third of the expected tota). That way, if someone decides to do an about face on the project after you have already committed many hours of work, you won’t be forced into hiring a lawyer to get a kill fee. Trust me; I’ve seen it to often. Fortunately though, not to me-yet.
Beverly–
Thank you for your comment. You are exactly right about the detailed scope of work to protect yourself even further. Getting a deposit is key as well.
To your continued success.
Melinda
Grade A stuff. I’m unqesuotinably in your debt.
Hi Melinda,
Great blog post. I enjoy your blogs for their “clear,” “cut to the chase” tips.
Thanks!
April–
Thank you for your comment. I am glad you like what I am trying to put out there. My goal is to end small business failure.
To your business success.
Melinda