I know that eliminating revenue never feels good, but regularly pruning your client list is one of the best things you can do to reduce workload and increase profitability.
In this episode, I’ll give you a step-by-step process to accomplish this.
Listen below.
0:36 If you’ve been running your firm for at least a year, you likely have some low-margin or frustrating clients. Eliminating them frees up capacity for better clients and lets you focus on growing your business.
1:11 The first step in pruning your client list is to rank each of your clients on a scale of 1 to 10 in different categories, and then generate a total score for each client.
1:37 Next, decide how to handle each of the clients you’ve ranked.
2:30 If you can’t convert low-scoring clients into high-scoring ones, then the final step is to eliminate the lowest-scoring clients.
2:40 We want clients who improve your business and are enjoyable to work with. It’s easy to overlook this if they’re paying you, but they should also add value beyond just revenue.
2:56 When letting go of a client, provide a clear reason and be fair. Give them some notice, but not too much.
3:44 Lastly, I advise conducting this exercise to prune your client list at least once a year.
