Mike Michalowicz's Blog, page 95

You May Be Unintentionally Turning a Great Employee Into A Terrible One In 6 Ways

When we have trouble with an employee, it’s easy to place the blame on them.  If they’d only followed the procedure, or if they’d only understood the clients’ needs, or if they’d showed more initiative, then things might not have gone wrong.  The problem is that it’s not always the employee’s fault.  Sometimes we’re truly the one who deserves the blame.

Want to make sure you don’t unintentionally create the situation you’re trying to avoid?  Here are 6 behaviors that are guaranteed to cause problems in your workplace.

1. Give your employee a lofty title.  You might think that you’re doing an employee a favor if you hire them to handle your social media and have their business cards printed with the title of “Director of Marketing.”  You can be creating a nightmare situation, though.  I once hired a bright and talented employee, and for marketing purposes, I made her a director of one of my company’s departments.  When she did a little research and discovered that people who shared her title typically made far more money than she did, she quit.  Not only did I lose a great member of my staff, but she also floundered in her job search, discovering that she wasn’t actually qualified for the positions she wanted.  Give your staff appropriate titles that reflect not only their abilities, but also their real-world position in relation to the rest of their field.

2. Make a technical person into a manager – and vice versa.  We tend to promote people who excel in their field, whether it’s sales or accounting, giving them more money and a more prestigious title.  The problem , though, is that management has its own distinct skill set, and being a competent sales person doesn’t necessarily mean that your employee is capable of managing the entire sales department.  Likewise, a manager doesn’t necessarily have the fine expertise required to complete all of the duties of the folks they manage.  Make sure you hire and promote based on your employees’ abilities with relation to the tasks they’ll actually have to accomplish.

3. Fail to prepare for their arrival.  When new employees arrive home, the first question they’ll be asked is “How was your first day?”  The problem is that we often stick new hires in a corner to fill out paperwork, rather than carefully planning their first day in a way that leaves the employee with a great first impression.  Don’t give your new hires the impression that you’re disorganized or that you don’t really need their contribution to the team.  Plan carefully and wow your new staff.  Set them up to be impressed and feel honored to be part of your team.

4. Mishandle praise and punishment.  In addition to handling criticism in private, one of the most important things you need to learn is that employees need to know what they’re doing right.  It’ s best to give specific praise in front of fellow staff, reinforcing the positive behavior that you want to see continue from every employee.

5. Give one-way feedback.  If all of the information that’s exchanged between you and your employee flows in a single direction, then something’s very wrong.  Communication requires at least two participants, and if you’re not soliciting your staff’s feedback on how you’re managing them and what they need in order to be able to do their job successfully, then you’re missing the boat.

6. Fail to establish clear, measurable expectations and a formal review process.  Even if you communicate with your staff on a daily basis, you must ensure that you give them formal feedback on their progress and standing in your company.  Ideally, you should have formal employee reviews once per quarter, or semi-annually at the very least.  Clear, measurable goals mean that your staff knows exactly what they need to do to keep the boss happy and stay in good standing.  It also ensures that you keep your company headed in the right direction.

Yes, you’re the boss, and yes, you’re in charge, but being in charge also means taking accountability for things that don’t go as planned.  By establishing open communication, appropriate methods for disciplining your staff, and by planning for how you’ll handle any problems that arise, you’re setting your company up for success.

The post You May Be Unintentionally Turning a Great Employee Into A Terrible One In 6 Ways appeared first on Mike Michalowicz.

Episode 14: Profitability and Top Level Employees with Dr. Sabrina Schleicher and Julie Wurzer

Show Summary

Dr. Sabrina Schleicher and her client, Julie Wurzer join Episode 14 of the Profit First Podcast. Sabrina and Julie discuss the importance of monitoring your expenses and hiring top level employees.

Our Guests

Dr. Sabrina Schleicher (left) is President and Founder of Tap the Potential LLC, America’s Leading Rural Business Growers. Dr. Schleicher and her team specialize in helping rural business owners overcome their greatest challenges to growing profitable, scalable businesses in their hometowns, while enjoying the benefits of small  town life, along with pride in running a business integral to the local economy. Dr. Schleicher recognizes that employee problems can be one of the biggest stumbling blocks for any business owner. With her background in psychology, and years of coaching small business owners to extraordinary results, Dr. Schleicher knows what it takes to find, keep and get exceptional performance out of your biggest investment—your employees. Access her comprehensive video training 5 Secrets to Exceptional Employee Performance (her gift to you!) at www.tapthepotential.com

Julie Wurzer (right) started Patch Abilities in 2004, after being “fired” (2 years prior) from her ag sales job at the local farmer’s cooperative … yes, fired. A couple years of self-discovery and a very active imagination (thankfully) led her to my “right” path. Patch Abilities Inc. (inc’d in 2008) specializes in small quilted wall hanging patterns, designed for any beginner with an itch to dive into the hobby of quilting. She took the big leap the first year in business and vended at International Quilt Market, their industry’s only trade show, her products were a hit and the rest is history. Julie grew the business from scratch to nearly half a million in sales in 2011. Yeah – quilt patterns – – crazy huh?

 

Show Quotes

It’s important to have the business owner work “on” their business rather than only “in” the business.

Analyze your advertising expenses; start with one big expense – how do you know that this is resulting in sales coming? Is it worth all of the money you are spending?

To hire a great employee you have to think of the A players as of the population. An A player performs at the level of several C and D player. Weed out the lower ranks and bring in an A player at top dollar. Hire someone that fits in with your business culture and works well with your ideal customers.

Assume that a lot of resume’s coming in are fluff. If you use the “pattern interviewing” method and start with a situation from their childhood and work your way through the years,  they will be more comfortable with telling the truth.

 

Show Links

Sabrina Schleicher on Twitter: @DrSabrina

Sabrina on LinkedIn: www.linkedin.com/in/drsabrina

Julie’s Website: www.patchabilities.com

Julie’s Blog: http://patchabilities.wordpress.com/

Julie Wurzer on Facebook

 

Show Sponsors

Nextiva – VOIP phone providers for small businesses. Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches. TSheets – The #1 customer rated time tracking solution!

The post Episode 14: Profitability and Top Level Employees with Dr. Sabrina Schleicher and Julie Wurzer appeared first on Mike Michalowicz.

6 Negative Traits Of Entrepreneurship That Remain Unspoken

I’m a member of an entrepreneur group.  It’s full of people whose names you’d recognize, owners of companies with a world-wide presence.  I was stunned at one of the meetings recently, when one of the members stood up and confessed that he’d been struggling with crippling depression.  What surprised me even more was that several other members were in the same boat.  We think of entrepreneurs as optimistic folks, but it turns out that there’s a bit of a dark side to starting your own company, and it’s time we acknowledged it.

Depression.  

Whether you’re talking about feeling a little down or a full-on, nonfunctional episode, it’s not uncommon for an entrepreneur to suffer from depression.  The tendency to be embarrassed or to hide what others may perceive as a weakness exacerbates the plight, and withdrawing from the support of your friends and family can make the problem even worse.  Getting the help you need can not only turn things around for yourself, but it can also encourage others who might be facing the same struggle.

Personal sacrifice.  

Sam Walton, widely regarded as one of the great American entrepreneurs said, on his deathbed, “I blew it.”  Putting your business ahead of your family and the quality of your private life is taking a step down a road that will be paved with regret.  Entrepreneurs can sometimes focus on work to the exclusion of things that will matter more in hindsight – relationships with a spouse or with children.  We should strive to keep a balance of work and home.

Unhealthy habits.

There’s never enough time in a day to accomplish everything we’d like to, and entrepreneurs often prioritize work over things like exercise, taking the time to eat properly, and getting enough sleep.  As it turns out, setting aside time for a healthy lifestyle can actually improve our outlook and focus, but far too often we choose work over physically taking care of ourselves.

Trouble making and keeping friends.  

Part of the trouble with maintaining friendships as an entrepreneur is due to perception.  People will often think that since you own your own business that you have tons of money.  We all know that’s often way off the mark.  In fact, owners of small retail shops often make some of the lowest hourly wages of any workers.  When your priorities shift to your business, your old friends may not understand you, and you’ll find it hard to set aside time to make new friends.

High expectations.  

The media plays up Mark Zuckerberg’s success and features stories about wildly profitable businesses started from scratch.  What is less interesting to cover is that fact that a lot of businesses fail.  Knowing that people are looking for you to achieve great success can make it even more difficult when you’re struggling through a rough patch.  While some of the biggest opportunities await those who start their own businesses, the risks can be great as well.

Being the odd man (or woman) out.  

Entrepreneurs are leaders, rather than followers by nature.  We’re not content to take what life gives us, and that sets us apart from everyone else.  Being different can be lonely, though, and it can be difficult to find people who understand and relate to the challenges of owning your own business.

 

I was recently on a flight to Las Vegas for a couple of speaking engagements.  I was upgraded to first class, which made the flight much more enjoyable.  What’s interesting is that I started talking to some of the other folks in first class – there were fifteen or sixteen of us in all – and every single person I talked to in that section of the plane was an entrepreneur.  Every single one.  Now I don’t know how many business owners were in the economy cabin, but it hit me that there really is something different about entrepreneurs.  We’re a breed all our own, and even with all of the difficulties we face, there’s still nothing I’d rather be doing for a living.

That said, if we acknowledge the problems and challenges we face, we’ll be more apt to realize that some of our struggles are changeable – for example, there’s always time to exercise and eat well, even if you think there isn’t.  Some of the challenges, though, are part of the price we pay for pursuing our dreams.  We’re not entirely alone, though.  Other business leaders face the same struggles that you do.     

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Get Paid 5 Times Faster In 5 Ways

Whether you bill weekly, monthly, or as needed, most of us work on 30-day terms.  When you look at your receivables, though, and add in the collection period, those terms end up looking more like 45 days.  Especially for a small business, 45 days can seem like an eternity.   Imagine if you could get that money 5 times faster!  Think of how much healthier that could make your cash flow.  If you take some simple steps to alter the way you handle your receivables, you can do just that – get paid in 9 days…or even less!

Here’s how:

Accept credit cards.

I’m shocked by the large number of businesses who still don’t accept credit cards and still rely on snail mail and old fashioned paper checks.  Given the fact that you can turn any smartphone, iPad, or tablet into a credit card reader, there’s really no excuse for not changing your ways.  You’ll typically pay a small percentage – roughly 3% of the transaction total, but you get paid instantly!  Once you’ve set up your system, you can ask repeat clients if you can keep their number on file and offer them the convenience of billing them for their future sales as they occur.  Making it easier for your clients to shop with you makes perfect sense.  You can go from 45 days out to 0 days out…right away.

Offer bank financing.

This technique requires some legwork on the front end, but if you can partner with a lender ahead of time and offer free financing to your clients, you’re providing a valuable service.  More importantly, when you put your customers in touch with a financial institution for financing, you’ll get your money up front and leave the collections to the bank.  The bank will typically charge you a fee, but the customer can get low or no cost financing, and you have zero collection responsibilities.  Especially for high dollar purchases, you want to remove any barriers that might prevent your clients from saying yes.

Change your terms.  

So simple, but so uncommon!  There’s really no reason to default to 30-day terms if that doesn’t make sense for your business.  If you institute new terms for all new clients, say COD or Net 10, you’re speeding the process up considerably.  It’s harder to get existing clients to change their ways, but you can even phase in a change for those clients as well, as long as you give sufficient notice.  There’s no reason you should be a slave to tradition.  Make your terms work for you.

Change your billing frequency.

If you provide a service on the 1st of the month and wait to bill until the 30th, you’re slowing your cash flow down.  Alter your systems to bill as services are rendered, and you’ll see your money much quicker.  A note here:  this technique doesn’t work if you bill for small amounts that accrue over the course of a month.  In that instance, you’re better off billing less frequently.

Build a reverse cash flow model.  

The traditional model has been to provide a product or a service and wait for the customer to pay you according to the terms.  Let’s look at the way we used to buy computers:  Compaq or Packard Bell would front all of the money to build their machines and ship them to stores, where the inventory would sit and await a customer ready to part with some money at long last.  Along came Dell, and they revolutionized the market.  Instead of putting machines in stores, they allowed customers to “customize” their computers, pay for them, and only then would Dell ship them.  Money first, then product.  Customers felt good (about selecting from the rather limited customization options) and didn’t realize that they were turning the traditional model on its head.  You can turn the billing process around for your business as well by offering prepayment or monthly billing plans that buy clients repeated service or future shipments.  Breaking free of your preconceptions about how your product needs to be billed can allow you to make billing work for your business, rather than becoming a hassle that makes it hard for you to make ends meet.

 

I would never advise you to ignore every piece of traditional wisdom about running a business, but I will counsel you to examine your business practices – like your billing policies – and make sure they make good financial sense for you.  Sometimes a sensible change in policy makes sense and improves your company’s fiscal health.

 

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Unselling Is On The Rise

It is human nature to crave that which is exclusive – reserved only for a certain few.  Knowing that a product is in limited supply, or only offered to certain highly-regarded customers makes us eager to plunk down our hard-earned money – whether we need the product or not.  Don’t believe me?  Here’s an example: the American Express Black Card – or Centurion Card, as it’s now known, is the stuff of legends.  You can’t actually apply for one; you must be invited.  Amex shrouds its uber-elite card in mystery so ordinary folks like you and I have to speculate about things like the annual spend you have to generate in order to garner one of these coveted cards.

There are stories about wealthy folks who’ve bought Bentleys and even jets with the Black Card, but get this … the initiation fee is rumored to be upwards of $7000, and the annual fee is $2500.  That means that people are dying to get this card, only to spend a small fortune to have it and still bear the responsibility of paying the balance in full each month.  People covet the exclusive VIP benefits of the card, sure, but they also crave the notoriety that comes with that rare and exclusive Black Card.  People are willing to pay lots of money to spend their own money.  Exclusivity works as a marketing tool, and that brings me to the topic of Unselling.

Rather than working against human nature, work with it!  We’re seeing a big increase in companies who use the exclusivity of limited production, big ticket appeal to entice customers to seek those products out and in some cases even lobby or compete with other potential customers for the privilege of buying something.  If you can create the same kind of buzz around your product or service, your marketing work is done.

Here’s how you do it.

Create a compelling, cool offer that’s only available to the very best of your clients.  Unselling is particularly well-suited for high-priced items, so this is your chance to put together the ultimate experience for your customers.  You can’t Unsell a commodity item, so you’ve got to work hard to create a product or service that gives genuine value and really matters to your elite customers.  Think one-of-a-kind, unique offerings.  Your offer may be a limited edition bundle of your best products, or it might be membership in an exclusive rewards program that offers deals unavailable to ordinary clients, but the most important aspect is to create a sense of exclusivity and even mystery surrounding your product.  Mention in in passing on social media; hint at it in email newsletters.  Start building a buzz for those customers who comprise your big spenders.  Your goal is to get them to spend a little more…and be excited about doing it.

Whether you create a VIP rewards club or a package deal, the key is to create a series of hurdles or stages that your customers must go through before they have the privilege of getting your offer.  The idea is to get customers excited and to use the excitement they’ll feel about achieving each stage to create a sense of pride and loyalty, so that when they’re finally in your exclusive club, they’ll brag about it and generate interest among their contacts and your other customers.  If you notify a customer that they’re close to the threshold for achieving your exclusive offer, they’ll jump at the chance to cross that line.  You get revenue; they feel a sense of accomplishment.

Success breeds success, so you want to give these elite clients a place or a forum to help add to the excitement of your brand.  Imagine it … clients doing your marketing for you by raving about how awesome your company is.  It’s a dream come true.  Give them a special forum on your website or feature them on your Facebook page.  Let them use their fifteen minutes of fame to help sell your brand.

Because you screen your clients before they engage in the qualifying process, you don’t actually eliminate customers who qualify.  You simply use the excitement and sense of achievement created by going through your process to strengthen loyalty and boost your image.  It’s important not to turn off otherwise good clients by excluding them from your VIP treatment.  You want to make it predictably achievable for those folks who begin the process.  As they make each hurdle, they become more committed to finishing the endeavor.  Rewarding repeat business and encouraging higher spends yields enormous results.

Exclusivity – being designated one of the chosen few – is at the heart of Unselling, and it requires you to offer your very best product and your very best service.  In exchange, your clients use the loyalty and excitement they feel for your company in service of your marketing needs.  They carry your message for you and attract other clients who crave that exclusivity as well.

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How Long Will Today’s Fad Be Popular?

The pet rock lasted about 6 months, albeit over 1.5 million pet rock sold.

The Chuck Taylor All Star sneaker from Converse has been a fad since the 1930’s and continues to steamroll in sales 80 plus years later.

The typewriter had a good run since the 1860’s, but I doubt you care to own one any more (unless you are a collector… and that does not count as a fad).

From cabbage patch kids to the wheel, everything is ultimately a fad. The question is just how long the fad will last.  One day? One month? A year, decade or century? Perhaps eternity (water seems to be doing well in this classification).

How long will the next fad last?  Your guess is as good as mine.

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Episode 13: Profitability in Virtual Bookkeeping With Gabrielle Fontaine

Show Summary

Gabrielle Fontaine, Bookkeeper and and Consultant joins Episode 13 of the Profit First Podcast. Gabrielle shares her insight on how to implement profitability in your professional bookkeeping services.

 

Our Guest

Mike Michalowicz & Gabrielle Fontaine

Gabrielle assists consultants and micro-business professionals get their books under control, maximize cash flow and save on taxes. She is an Advanced Certified QuickBooks ProAdvisor, FreshBooks Certified Bookkeeper, and part of the Wave Pro Network. Gabrielle specializes in online bookkeeping and business training & consulting.

She is also the author of the popular blog for professional bookkeepers called The Freelance Bookkeeper.

 

Show Quotes

Clients want their bookkeeper to be virtual so they can call you from anywhere. They also want the books online so the client, bookkeeper, and accountant can all access the information simultaneously.

When you’re running your own business and you know the technology, now you become more of a professional. Clients seem to respect us more and expect to pay a professional fee.

Build your relationships on an authentic level. Get out there and just be who you are.

When bookkeepers struggle the issue is their own confidence and not charging enough. Alot of bookkeepers view themselves as data entry clerks and they think they should charge what they would get paid per hour in a corporate job – once they realize acting like a professional should get paid professionally is when it becomes a high profit business.

When a client comes to you and says ” There’s a few things that are not quite right with my books, could you clean that up? How much is that going to cost?” The books are probably a huge mess – whenever a client thinks there’s a problem with the books it means they’re really messed up.

When a customer asks you about your prices first before their needs, the response is “If price is your #1 consideration then i’m not the bookkeeper for you, let me refer you to someone who is more affordable.”

Marketing is communication; it’s not about promoting yourself and bragging, it’s about communicating that clients need our help and letting them know you’re there to help them.

 

Show Links

Gabrielle’s Website: http://BookkeepingDirect.com

Blog for Bookkeepers

Twitter: @tfbGabrielle

Gabrielle on LinkedIn

 

Show Sponsors

Nextiva – VOIP phone providers for small businesses.

Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.

TSheets – The #1 customer rated time tracking solution!

 

The post Episode 13: Profitability in Virtual Bookkeeping With Gabrielle Fontaine appeared first on Mike Michalowicz.

7 Ways To Discover Your Biggest Competitor’s Secrets

Investigating what’s going on with your competition can not only give you invaluable insight into what your rivals are up to, but it can also give you information about your own company and how to position yourself better.  Legal commercial espionage is simply using all of your available resources to make the best business decisions possible.  Here are some tips on how to discover what the other guy’s up to:

1. Figure out their revenue.  The way to get a rough estimate of how much revenue your competition’s bringing in is to multiply the number of employees by $150,000.  Now it’s a rough estimate, to be sure, but having an idea of revenue keys you in to the number and the size of clients your competition has, and it can help you assess their threat level to your company.  If they’re much larger than you are, then you can safely focus on some small fish that they may be ignoring.  If they’re much smaller than you, then you’ll know that they’re not able to handle some of the bigger clients you’re targeting, which makes them less of a threat.

2. Find their best sales guy (or girl.)  One reliable way to get this information is by interviewing one of your competition’s sales people.  You may not have their top person, but if you ask for the sales rank file, you’ll get access to all sorts of useful information, from client names to actual sales figures.  Knowing who drives the most business for your competition can help you identify attractive new hires, or it can help you identify opportunities for teaching your sales staff how to improve their sales strategies.

3. Find their best customer.  One of the best ways to determine who the best customers are is to look to the testimonials on a company’s website.  Businesses are most likely to solicit rave reviews from the clients they’re proudest of.  Knowing who your competition is selling to can give you an idea of the scope of their business, and it can also clue you in to clients who aren’t yet being served.

4. Keep an eye out for new products and offerings.  Go to trade shows in your industry so you can stay on top of what’s new and exciting.  Whether you use the information you gather to develop an improved version of your own product, or you scope a new product out to research its weaknesses, being at a trade show puts you in contact with clients you can win, and it keeps you abreast of trends and developments in your biz.  You can learn a lot even if you don’t have a booth at a show yourself.  Simply attending can give you access to all sorts of inside information.

5. Monitor social media.  Socialmention.com is an astounding resource that lets you track your competition’s social media presence and can let you see when there’s a problem or a new development.  A flurry of customer complaints on social media can present you with a great opportunity to scoop your competition and win over their clients.  You can pick up tactics and techniques that are effective for your competition and incorporate those strategies into your own social media campaign, or you can take advantage of problems that crop up with other companies.

6. Monitor the web and news.  Whether it’s a formal press release or an article about your competition, staying current with what’s going on in the news can yield productive results.  Set up a Google alert to let you know each time your competition appears in the news.  Whether there’s a corporate shakeup or an incredibly successful product launch, knowing what’s going on lets you situate your business to take your piece of the pie.

7. Find their strongest keywords.  As more consumers use the web to search for information about companies and the services they provide, knowing what keywords consumers use is increasingly vital.  Alexa.com will give you keyword information that consumers use to get to your competitor’s domain.  Co-opting your competition’s keywords can help you attract their clients to your site, giving you the opportunity to get their business.

There’s nothing underhanded about any of these tactics.  In fact, if you’re not constantly working to acquire information about your competition, then you’re missing opportunities to come out on top.

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How To Know If Your Business Idea Is A Good One

It is likely the most common question I hear: “How do I know of my business idea is a good one?”  That question is usually followed up with, “Would you buy it?”

That second question sucks, and hurts all too many entrepreneurs. No one knows how good your idea is except for the customers that pay for it, with their hard earned money.

The best way to gauge your concept and prospective customer interest is not by asking people what they think. Most people will say what they think you want to hear.  Instead ask for them to make a deposit on your idea. This forces people to make a financial decision.  And when it comes to an actual transaction, the truth will be told by their actions.  Do they quickly hand you some money, or do they quickly hand you dozens of reasons why they want to hold off.

Even if you are not in business yet (and are just in the idea stage) you can take check deposits made out to your future business and not deposit them.  The key is to get people experiencing the pain of departing with money in exchange for the gain (or future gain) they will derive from your offering.

Pitch it to your prospects by saying “I am going to be offering XYZ service.  I will likely charge $1000/month (or whatever is the number). But I want to bring on some early customers now and will drop the price to $200/month (or whatever is a big discount) for people who give me a deposit now.  Are you interested?”

Then wait to see what they tell you about your business idea, via their actions.

A business concept is just a concept. It only becomes a business when it makes money.

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Deal With A Difficult Client Using These 8 Strategies

We all have ‘em – you know, the folks who make you cringe when you see that they’re calling.  The ones who drain your energy, criticize everything, and are slow to pay, to boot.  Difficult customers exist in every business, for every company, and even though you may want to kick them to the curb some days, you know that it’s better to keep them if you can.

Here are the inside secrets I’ve found for making dealing with difficult customers a little less painful.

1. Choose your words carefully.  I was working with a client, advising him on some better business strategies, and he was complaining about one of his difficult clients.  I sat in on one of their meetings, and I could tell right away that it was my client’s words that were creating the tension, and my client wasn’t even aware of it.  For example, my client said they would “hash out the details” at a later date, and his customer cringed.  His customer tended to use less confrontational terms like “bring clarity” rather than “hash out.”  I suggested that my client listen carefully in their next meeting and mirror the terms that his customer used.  It worked like magic.  They were on the same page, accomplishing what needed to be done, with zero conflict.  Mirroring your customers’ words puts them at ease and assures them that you understand their needs.

2. FroMLE.  This little gem has gotten me through many a difficult conversation with everyone from clients, to relatives, to friends.  It stands for “from my limited experience,” and the trick is to add this phrase – mentally – to the end of statements that might otherwise be offensive to you.  Say one of your clients tells you – his accountant – that accountants are just glorified calculators.  It’s an insulting and infuriating statement, but if you tack on the FroMLE to the end in your head, it softens the blow.  He thinks little of accountants because he doesn’t understand the complexity of the work a good accountant does.  Try this trick, and you’ll find that it changes your perceptions and makes you far more tolerant of the sometimes idiotic things that emerge from your difficult clients’ mouths.

3. Get to the measurables.  There are times when difficult clients – even ones with legitimate concerns – mostly just want to unload on you … at great length … repeatedly.  When you find your client making broad generalizations, like “nothing’s working” or “You never finish on time,” then your best bet is to make them get specific.  Ask them for specific examples of what troubles them and propose specific, measurable remedies for the problem.  Ask them point blank:  “If we solve your problem, does that fix this situation?”  “If we have it for you by next Tuesday, are we good?”  Specifics are your friend when you’re dealing with difficult clients.

4. Acknowledge, but don’t agree.  Sometimes agreeing with a client who’s displeased will add fuel to their fire.  If you can acknowledge their position and shift the conversation to the resolution – the measurable – you’re moving away from the ranting and toward a solution for their complaint.

5. Pin down the outcome.  Keep your focus on what your client wants you to achieve.  If you’re running around dealing with petty details, you may not actually be working toward the end goal.  Don’t waste your time treating the symptoms while ignoring the disease.

6. Document.  Especially with problem clients, I’m a fan of face-to-face or Skype meetings.  Why?  Because I use the a visual component as a tool for herding the errant client back on topic if they start to stray.  I use a whiteboard and jot down the client’s complaints, and as we move through them, if the client starts to rehash what we’ve already settled, I point to the whiteboard and remind them that we’ve solved that problem and we’re moving on.

7. Recognize a real personality conflict.  It happens.  Sometimes, you’re just going to run into an oil and water scenario, in which you simply can’t find a way to work with a specific client.  Your best bet in this situation is to find another member of your staff to assign to the client.  If you can, ask the client who they’d prefer to handle their account, so they don’t feel slighted, but rather realize that you’re providing them with exemplary customer service.

8. Fire them.  When all else has failed, and when the emotional drain is no longer worth the revenue, it’s best to cut your losses and move on.  You get to spend your time working with more productive clients, and one of your competitors gets your irrational client.  That’s a win-win.

The vast majority of the time, one of the first seven tactics will resolve your difficult client situation, and you’ll find that if you’re thoughtful, focused on specifics, and speaking your client’s language, that you rarely ever have to cut a customer loose.

The post Deal With A Difficult Client Using These 8 Strategies appeared first on Mike Michalowicz.