Four Rules for Picking a Customer

Who are your customers and do you really want all of your customers? It’s a question most small business owners probably never ask themselves. All too often, startups will take any customer who can fog a mirror.  Bad plan.

I don’t remember exactly when I came to the realization: I don’t need to do business with everyone who wants to do business with me. Think about it; it’s as ridiculous as marrying everyone you date. I did discriminate on the basis of budget in the beginning, but that really doesn’t go far enough in determining who makes a great customer.

Now, after nearly six years of running Keystone Business Solutions, I finally have a 4-step formula for determining with whom I’m going to do business. I call it the “Four Rules for Picking a Customer.”

Rule #1 – Adequate Budget

Working for free is not difficult. It’s also a terrible business plan. Many businesses would be more than happy to have you solve their problems without paying. Suckering you into a situation where you’ll get paid but take a loss is also a popular trick.

If your customer is constantly beating you up over price, they’re not a customer; they’re a drag on your resources and a hindrance to your ability to attract other customers that don’t drag you down. Dump them.

Rule #2 – “Drinking the Kool-Aid”

Few things are more irritating than a customer who asks for your expertise, then tells you you’re wrong. Or worse yet, they proceed to tell you how they would do it…and then talk you into implementing solutions you know won’t work as well. Don’t forget that you will take the blame when their plan fails.

If your customer isn’t buying your advice…”drinking the Kool-Aid” so to speak, they’re not worth the hassle. If I believe my doctor is giving me bad advice or ignoring my needs, I change doctors, I don’t argue with her until she tells me what I want to hear. A customer who doesn’t trust your advice shouldn’t be your customer. Let them give someone else a headache.

Rule #3 – Motivated to Act

A customer that comes to you seeking advice yet never acts can be enticing. You think they want you to heal their pain. They don’t argue with your solution; they know your advice is good, but they just can’t bring themselves to authorize the work.

Now hear this: they’re never going to do anything. They really just want to talk about solutions they’re never going to implement because it makes them feel better. End this dead-end relationship and move on to the next opportunity.

Rule #4 – Not “Crazy”

“Crazy” may be too strong a description, but it communicates my point. Working with soul-sucking lunatics is not good for business and it’s definitely not good for morale. They’ll expect you to move heaven and earth to cover their mistakes or poor planning, then react horribly when you can’t. They miss appointments. They misunderstand your communications nearly every time. They don’t keep agreements, verbal or written. In other words, they make you work twice as hard as a customer that isn’t loco.  Don’t let them make you crazy too.