An axiom of running an integration business or an MSP successfully can be summed up as follows: Not all business is good business. Yes, all clients might produce revenue and keep your employees busy, but some clients can be a drain on resources and, at worst, sap team members of motivation and enthusiasm. That’s why it’s critical for integrators and MSPs alike to empower their financial leadership and ensure that the client roster is packed with “good business” — not just anyone who’ll sign the contract.
In Part 1 of this two-part presentation, Commercial Integrator speaks to three members of The ASCII Group, the oldest and largest independent IT community in the world, so they can share their experiences with these issues. Contributors include Mike Bloomfield, president geek at Tekie Geek; Joshua Liberman, president and founder, Net Sciences, Inc.; and Jean Prejean, president, Guardian Computer.
Commercial Integrator: If you agree with the premise that not all clients/customers are good clients/customers, what would you say are the telltale signs of a client/customer being problematic?
Mike Bloomfield, president geek at Tekie Geek
Not all clients are the right fit for us. When we meet with potential clients, we’re interviewing them just as much as they’re interviewing us. One of the first things we notice is the age of their equipment: If they’re running on ancient tech, it’s a red flag that they might not want to spend money on necessary updates. We also dig into their history with previous vendors, keeping an ear out for any red flags that hint the client was the problem. Unrealistic expectations and poor communication are other signs that can spell trouble down the road.
Joshua Liberman, president and founder, Net Sciences, Inc
Above all else, we sell trust. Actions such as dismissal (that does not apply to us), attempts to pick apart our offerings (we don’t need that) or references to other “authorities” whose recommendations will supersede ours (he/she says this isn’t right) are all tells that this trust bond is not forming properly.
Jean Prejean President, Guardian Computer
When identifying a problematic client, the key signs we look for are these: chronic disrespect toward our team, which disrupts the positive work environment we prioritize; unresolved misalignment, where differing perspectives lead to unmet expectations despite our best efforts; and late or non-payment, signaling financial instability or a lack of respect.
Commercial Integrator: Are you comfortable firing a client/customer if you feel like theirs is “bad business” for you? How do you go about doing that?
Mike Bloomfield: We’ve reached a point where we can comfortably say goodbye to clients who aren’t a good fit. It doesn’t happen often, but, when it does, we handle it professionally and make sure everything is documented. We always aim to part as friends because, in the end, we have to do what’s best for our business and team. Sometimes, it’s just necessary to cut ties — and that’s OK.
Joshua Liberman: I’ve developed no skill so well as that of the parting of the ways. Our documents prevent the outright firing of clientele (after the first 90 days), but they don’t prevent us from raising prices. I’ve found that doing so decisively and often will help nearly any client find the door. If not, at least compensation improves.
Jean Prejean: Yes, we are comfortable letting go of a client when the relationship isn’t working for either party. We always start by having open and honest conversations to try to find a solution that works for everyone. If we reach a point where it’s clear we’re not the right fit, we follow the process outlined in our MSA to ensure a smooth transition. This decision is never made lightly, and it should never come as a surprise to the client.
Commercial Integrator: On the other hand, what are the hallmarks of “good business” that would make you desire an even tighter, even more enmeshed relationship with a client or customer?
Mike Bloomfield: Our clients aren’t just clients; they’re our friends and family. We make it a point to get to know them, share meals and really become part of their team — not just be another vendor. We’re in this for the long haul, and we want them to see us as an extension of their family. It’s all about trust and mutual respect, and that’s what turns a business relationship into a true partnership.
Joshua Liberman: You will find yourself answering more questions about operational maturity for your clients. You will also find yourself “invited to the table” when they look at new ways to improve their operations. And they may even ask, “What more can we do to improve our security?” This is the real win we all want to see.
Jean Prejean: The hallmarks of “good business” that make us eager to deepen our relationship with a client are mutual trust and respect, where clients value our expertise and understand that our recommendations are in their best interest; open communication, which fosters continuous improvement; and a collaborative partnership that aligns with shared goals and values.
