Knowing when and how to turn down a client that doesn’t align with your vision can be a tricky task, but it’s also an immensely valuable skill. Sometimes, saying “no” to new business can be a strategic superpower that helps you dodge complications down the road.
When my partners and I started Highnoon, we intentionally sought out challenger companies that matched our brand persona of “becoming a trailblazer.” To this day, if we don’t believe a potential client has the guts or grit to go against the status quo, we decline their business. I’ve learned that being more selective results in stronger long-term partnerships rooted in trust, amicability and shared values.
Don’t get me wrong — if you’re first starting out in any industry, you may or may not have the luxury of turning people down, and that’s okay. You often have to accept any work that comes your way, within reason, to put yourself on the map. But as you grow and learn from your experiences, you can redefine your criteria for the ideal client.
I recommend using this five-step checklist to help you decide whether to take on a new client:
1) Are they financially stable?
First thing’s first: can the client afford your services? If not, this can put unwanted pressure on both parties. This is especially the case in marketing and other industries where clients sign on for a set period of time. You must be sure potential clients have the foresight and financial confidence to grow in the coming years.
Know your worth as a company — you charge a certain price because the quality of your work matches or exceeds that value. Even if you love the client and what they stand for, they may not be the right fit if they’re struggling financially.
2) Are they ethical?
In contrast, money means nothing if your client doesn’t hold strong morals. First impressions are everything when taking on new business. So ask yourself: can I see this potential client becoming a trusted, long-term partner, or do they seem shady?
In business, your reputation is everything. Never align yourself with an unethical customer or client, regardless of how much money they bring to the table. It all comes down to your judgment. Do your research, trust your gut and ask plenty of questions to uncover the client’s true motives.
3) Do they want to work with you?
No matter how badly you may want to partner with a business, sometimes you have to be honest with yourself and ask whether they want to partner with you. From the client’s top executives to your main point of contact, everyone should be on board with this relationship.
Before you start making agreements, get some insight into the company’s structure to ensure that any future leadership changes won’t result in a broken contract. It’s important for both parties to cooperate and understand the added value you offer each other.
4) Does your team want to work with them?
When taking on new business, you can’t forget about your people. Before a new client joins your company, chat with your employees first to make sure they don’t have any legitimate reservations about working with them. You never want to force your valued team members to collaborate with a client that makes them feel uncomfortable.
5) Do they get it?
The ideal client should clearly share their long-term goals with you, then trust you to take the right steps in reaching them. Do they have a strong vision of what they want to achieve but need some assistance in getting there? Or, are they overriding your advice and demanding services that are completely wrong for their business? You always want the first client. After all, they’re seeking out your services because you’re offering industry expertise they don’t have.
Here’s a marketing-related example. A client comes to you wanting to boost their business with SEO. Maybe they’ve attended a conference or read an article that told them this was the key to growing their online presence. While that may be true, the client might not fully understand the intricacies of SEO or that it can take months to yield results. In this case, it’s probably better to start with Google Ads, which lead to almost instant growth.
If you share these thoughts with the client and they insist that SEO is the right path to take (and then complain to you when they haven’t had any success after a week), it’s safe to say the client doesn’t get it. Clients need to understand they hired you because you bring unique expertise to the table.
To Summarize:
Knowing when to pass on new business is easier said than done. It can be hard to pick up on people’s intentions and character from the start — that’s a skill that will naturally improve with time. You’ll definitely encounter a few bad eggs along the way, but it’s all part of the learning experience. Just as your social circles evolve based on who you choose to surround yourself with, your business partnerships will, as well.
Trust your instincts, never underestimate first impressions and seek out clients who share the same values as you. If the client is a wrong fit, cut ties the second you feel uneasy. The sooner you can sort the good from the bad, the sooner you can begin hand-picking companies that enhance your brand and further your mission.
Want to learn more about how to turn down a client? I would love to speak at your next meeting, conference or event and share my insight. Reach out to me today, and let’s talk!