Merry Christmas; It's time to fire your clients!!!!
Every end of year you must fire your worst performing clients and on board new ones. Before I give you my rationale let me share with you an analogy.
I was watching a premier league match the other day and the presenters were talking animatadely about which teams were relegated in the just concluded season (Nairobi City Stars and Ushuru just in case you were wondering). While they were being relegated new teams were being promoted; Kariobangi stars, Nakumatt, Nzoia Sugar and Zoo Kericho. (I know you thought I was going to talk about the English Premier League, umesahau at Wylde we belive in Africa.) Anyway, it occured to me that the premier league has a self renewing mechanism. Every year stronger teams are added as weaker teams are made to give way for them. The league only gets stronger with time. New teams compete to stay on the league and staying on the league earns them more money. To stay on the league teams must work hard, work smart, develop new strategies, put in place better systems, develop better team work, get better players, get better coaches, learn new skills, do more drills etc.
Now back to my story on firing clients. As a consultant, a service provider you are the league and clients are the teams. Clients need to be working hard at getting better and clients who you serve should be implementing the changes you are recommending to them and should therefore be getting better and eventually win in the market. If they dont then they should be dropped from the league and allowed to play in the junior league for a season so that they can be promoted when they become better. As you drop them you create space for new clients who will perform better who will grow. As you drop the non performing clients you also create space for yourself to focus on performing clients who can then get better service and pay you more. Every year as the league becomes better and better it is able to pay players more and more and the league itself becomes more profitable and can support the teams in the league better.
You have heard of the Pareto principle; 20% of your clients make 80% of the revenue. You need to consistently fire the bottom 20% of your clients who are not performing as you move increase attention and value to the top 20% of customers who are performing.
If you agree with me then inbox me the names of the clients you are firing this Christmas. If you disagree with me then tell me why on the comments section and let's have a healthy debate.
Entrepreneurship Ecosystem Builder