Losing a client can be surprising, disappointing or upsetting for several reasons. It can even have a devastating impact on your bottom line since a substantial share of your business’s cashflow could disappear with the loss of a major account.
However, losing a client, even a significant one, can have a positive impact on your business. As an entrepreneur for over twenty years and the current CEO of SMEJapan.com, Joel Devidal, draws on his own experience and discusses how losing a client can help you improve your business.
Losing a Client Stops You Being Complacent
Losing a client forces you to ask, “Why?” Why did the client stop buying your products or services? If it was because the quality wasn’t of a standard that the client expected, then you’ll need to make improvements. If the client didn’t think your product or service was worth the money, you’d have to think about how you can increase the value of your offerings.
If your product or service didn’t get delivered on time, the next step forward would be to look at your processes and focus on where you can become more efficient and responsive. If the client’s financial circumstances changed and they could no longer afford your product or service, then you’ll have to roll up your sleeves and track down more clients who can.
Losing a Client Forces You to Move Forward
Have you been sitting in your comfort zone, working for a few regular clients and taking their money? If so, losing a client compels you to step out of your comfort zone and drive your business forward by raising awareness of your unique offering via the following channels:
- identifying and contacting potential clients
- revamping your website
- promoting your business through online and offline channels
Losing a Client Helps You Reevaluate What You Want from Your Business
If a client didn’t share your values, parting ways could be a good thing. Or, perhaps you’re not particularly interested in working long-term in your lost client’s industry. Take some time to reflect on the kind of clients you’d like to work with in the future. In what sectors do they work? What kind of values do they have? What specific products or services would meet their exact needs?
Use your network to identify some potential clients that meet your criteria and then reach out to them via phone, text, email or social media. With today’s tech, the options are endless, and in the end, you’ll have clients who are a better fit for you and your business.
So, if you lose a client, don’t panic. Take some time to think about how you can use the situation to improve your business and rethink the direction in which you’d like to steer it. Set yourself some goals and give each of them a deadline. Let the loss of a client be the catalyst for developing and growing your business in ways that fit in with your preferences as well as your values.
About Joel Devidal
Joel Devidal is experienced in the business world; as a founder and CEO, he has a knack for finding investors, launching companies, and keeping steady growth post-launch. He also uses his experience as a founder and CEO in the online marketing and internet retail industries to advise young entrepreneurs on how to find their way in the business world.
Joel Devidal Around the Web