How to Terminate Services With a Client

Running a successful service-based business requires, well, clients to serve. Which is why landing new clients is (naturally!) such a big deal.

In the world of client relations, navigating difficult clients is often an expected part of the gig. Clients who are extra needy, hyper-critical or simply complicated aren’t rare — and while dealing with these types of clients can be frustrating, it’s often doable.

Yet, over the course of business, the reality is that you’ll likely encounter clients who take “difficult” to a new level and who aren’t the right fit for you and your organization.

When this happens, it pays to be prepared. Knowing when and how to break up with a client is key to your ongoing operations and to the happiness of you and your team.

When to Fire a Client

The decision to drop a client isn’t an easy one to make. On the flip side, it’s easy to talk yourself into keeping the engagement going longer than you should. As a rule, if you’re continually questioning if a client is aligned with your values or your work, you probably already know the answer.

Here are some of the tell-tale signs it’s time to tell a client you can’t work with them any longer:

They’re rude or derogatorY.

Being nitpicky is one thing. But when the commentary goes from constructive to simply unnecessary, you know you have an issue.

Clients who make hurtful comments about your business, you or your team, or who showcase derogatory behaviors such as racism, sexism or other traits that put others down are not clients you want to serve.

Remember: As the business owner, you call the shots on telling a client you can’t work with them. If a client is unable or unwilling to modify their behavior to accommodate your feelings and standards, it may be time to end the relationship.

They’re disrespectful.

From the comments they make to not showing up for meetings, disregarding your boundaries or consistently not doing what they say they will, if a client is repeatedly disrespectful of you or your engagement, it may be time to terminate services with them.

Real talk: You can’t want the partnership to work more than they do.

As the leader, you also promote what you accept. Don’t forget that you set the standard and that your people are watching. What sort of behaviors do you want those you lead to accept and emulate?

They don’t value your expertise.

It happens. A client hires you to help with an area of their business operations they aren’t equipped to handle, only to persistently question you at every opportunity.

In this “it’s not me — it’s you” scenario, if the badgering becomes unproductive, if the trust can never be established or if they completely hinder your ability to do what you do best, you may consider developing a plan on how to drop said client.

They don’t follow the terms of your agreement.

Whether it’s habitual lateness in fulfilling invoices or simply not adhering to the terms you both agreed upon, these types of behaviors aren’t ones you have to put up with.

Your business is likely your primary source of income and stability. When a client continually jeopardizes the components — contracts, terms and conditions, non-disclosure agreements, etc. — you have in place to protect yourself, your business and your livelihood, knowing how to say no to a client will likely save you in the long-run.

How to Politely Fire a Client

So, you’ve decided it’s time to tell a client you can’t work with them any longer. While it can feel like a daunting conversation, don’t forget your reasons for ending the arrangement and your obligation to put your people and your operations first.

When it comes to how to politely fire a client, it starts with honesty. By this point, you’ve hopefully had conversations with the client about the behaviors that are unacceptable that have continued to go unaddressed — so your feedback shouldn’t be new to them, but speaking truthfully when you get down to it is key.

Further, keep it professional. They might get mad. They might make threatening remarks. Try to end things on a thoughtful note by keeping your cool. Ultimately, if you’re feeling that the partnership isn’t working, chances are they might be feeling the same. If you can walk away amicably, that’s the goal.

Final Thoughts on How to Terminate Services With a Client

Knowing when to fire a client is a tough situation to navigate. By listening to your gut, staying true to your standards and being honest and respectful, you can turn the most challenging situations into learning lessons for you, your employees and the clients you serve.

Knowing when a client isn’t a fit starts with being a quality leader. Learn more about the power of leadership for guiding both your business and those you serve.