Businesses often work on the principle that expanding their client base is a good thing. The search for new clients is an ongoing task for many companies. However, landing the wrong kinds of clients can be just as troublesome as not having enough. Failed working relationships almost inevitably lead to an outcome that was not as robust as expected. Pre-qualifying potential clients increases the chances of successful communication and excellent results.
According to Price Waterhouse Coopers, 97% of organizations feel that project management is essential for organizational success. Projects include at least two parties: the company and the client. If there is a poor match between the company and the client, communication is likely to fail and the project may not reach its target. Screening clients before making an agreement is essential to avoid problems.
Ensure Their Requirements Are Consistent with What You Are Offering
Companies and individuals may venture somewhat out of their comfort zones from time to time to explore a new product, marketing tactic, or business strategy. However, this stretching is best done within a company and can be risky when experimenting with something new requested by a client. If the client wants something that is not part of your regular services, it may be safer to let the opportunity go rather than take the risk.
When should you stretch your muscles a bit and try to meet a client’s needs with something that is new for you?
- If there is someone one your staff with expertise in that area
- If you can get feedback from an expert before presenting the final product to the client
- If you can outsource if it doesn’t go as expected
- If you have time to tackle the new project
Adding to your skillset is a great idea, but if you try to reach too far for a client, you may be risking your reputation. If the above conditions are in place, however, it may be worth it.
The Importance of Serious Clients
It can be a challenge to figure out whether a client is serious or if they are on a fishing expedition and trying to harvest information for their own purposes. Perhaps the real aim of their interviews is leverage so they can negotiate lower rates from another company or get information on how to offer a similar service themselves. How can you tell if the so-called prospective client is fishy? Here are some warning signs:
- If they are obsessed with price and exact details of the size of the job rather than other aspects of the project
- Establishing a connection is unimportant to them
- They don’t seem to care about your company culture or details about delivery
- Their manner is overly abrupt and they do not want to take the time to communicate in a relaxed and pleasant manner
Don’t allow a potential client to ask more questions about your company than you ask about theirs. Screening before making an agreement can ensure that you are working with serious clients who are genuinely interested in purchasing services you are offering.
Confirming Available Resources
No one wants their client’s budget to run dry. Pre-qualifying clients before beginning the project will confirm that there is a concrete budget for the work you are doing.
Of course, talking numbers doesn’t need to be the focus of the first conversation, but it shouldn’t be mentioned last. A prospective client’s unwillingness to provide detail on budgetary plans is a red flag. If you have already discussed what is to be done in detail and specific delivery time and the client seems evasive about a payment schedule for milestones, reconsider before making it official. Approve only those clients who demonstrate the means and willingness to pay for the work in a timely manner.
Scheduling Issues
If it is the busy season for your company and your client is experiencing some slowness or vice versa, the working relationship can be a challenge. Budget your time like you would your money and be honest whether you will have time to take on the client or not. However, if you really want to keep this client, consider outsourcing part of the work.
It may be harder to determine if the client is too busy for you. If your client is in the packaging industry, for instance, and if the holiday season is coming up, be proactive and ask if they will be overburdened during the holiday rush. If you are working with a client during their busy season, perhaps decide to work on a project that is not so urgent.
Ensure that delivery times are realistic for your company and that the schedule is manageable with your current staff. When you are busier, you may be more selective and when things are slow, your company may have to be more lenient than usual about approving clients, but even minimal screening is preferable to none.
Finding the Right Fit
Most businesses have had that one client who just wasn’t worth the trouble. According to a Marketing Agency Growth Report in 2018, 26% of companies identified moving on from a poor relationship with a client as a major pain point. The problems can be financial loss, compromised reputation from a failed project, or a decline in revenues. Investing the time in pre-qualifying clients will help you focus on clients who are a good fit for your company.
