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How to fire a client

How to fire a client

Firing a client can be a tough decision for a business owner to make. But, if someone is causing your business undue hardship or loss, it may be time for you to say goodbye.

Part 5 [In this series, business owners find helpful tips for dealing with late or non-paying customers.]

Before you do anything, experts say to be certain that all of the contractual obligations on your part have been met. Send a final invoice for any unpaid balance, due upon receipt.

Then, you can send a termination letter. It does, however, make good business sense to remain professional and courteous with these clients. Do not place blame or fault. Instead, explain that you feel you’re just not the right fit for them—that they would be better served by going elsewhere. Place all paperwork and other information you have on the client in a file and store it away securely.

What not to do:

Finally, experts advise resisting any urge to talk publicly about the client you had to “divorce.” Don’t imply he is a deadbeat or bad credit risk. If you must vent, do so at home, so you don’t set yourself up for potential slander and libel claims.