Home Based Business Articles

Some people in business will say that there is no such thing as a bad paying customer, some of these same people also believe that there is no publicity that is bad. There is nothing that could be less true for anyone hoping to build a sustainable, growing business. As the owner of the business you need to be the one choosing your own customers from the pool of potential customers. You heard it right, you are the one that should be in charge of choosing customers!

Doesn't it make sense to accept business no matter who it comes from, as long as they are willing to give you their money? In my opinion this question can be clearly and emphatically answered in the negative. With business there is no shortage of short sightedness when considering ways of increasing cash flow, and this acceptance of any customer is one type of short sightedness. Most people agree that misleading and manipulating people into purchasing your products is not a wise way to run a business. However, there are many business owners that are otherwise rational that assume that they can't afford to turn away business, no matter how it comes. This temptation is particularly strong when first starting out in the business world and money is tight, but the long term risk to the success of your business is also at its greatest at this point.

So why would you be choosey in accepting customers to your business? One answer is obvious to anyone who has ever run a business. There are always a small number of people who can't afford your services, but that doesn't stop them from trying to buy from you. The mortgage crisis of 2007 -2008 is just the result of the banking industry going right down that road with sub-prime borrowers. For some reason they thought that they could make a quick profit on a very risky customer group without it coming back to bite them. In doing so they have contributed greatly to taking down the entire economy into what looks like a recession. If it weren't for the ripple effect on the rest of the economy it would just be their just rewards. Some small businesses take just such risks with questionable customers. If you accept customers who will require you to go to collection agencies to get your money, it is likely to be a very poor business decision for you.

Customers that are viewed as 'problem' customers will often be avoided by many businesses. You know this type of customer, the ones who complain at the drop of a hat about anyone and everything. With these type of customers there is almost nothing that can be done to meet the unrealistic expectations that they have about what the world, including you, owes them. This customer type is generally easily recognized by their angry demeanor, and their complaints about competitors in your same industry. If spotted early it truly is best to let them go and let someone else deal with the trouble that they are bound to be. Though these customers may well be able to pay you, it is usually a nightmare to deal with them, which is usually not worth the effort for most businesses. The important skill in this instance is to be able to quickly identify them and make a decision about them. In this decision it can be difficult to determine just how much of their griping about competitors as truly accurate, and what potential opportunity they may provide. In this respect it is wise to be aware of the reputation of your competitors to help you make this decision.

The customer groups above are easy for most businesses to let pass by. However, there is another group of customers that you need pass on as well. These are the customers for whom your products or services will not meet their needs. Many businesses take the approach that it is the customer's responsibility to decide what to buy, and the business owner tries to sell as much as possible to any willing buyer. This strategy is very short sighted and destructive to the growth of your business. If you sell something to a customer who is ultimately disappointed with you, they are likely to place the blame on you, whether that is justified or not. It is much better to tell someone up front that you don't think your offerings can meet their needs than to make a sale that is destined to disappoint the customer. The best way to avoid this situation is to clearly describe your products or services without the excessive hype that dominates much advertising. Tell them clearly what you provide so that they can make an informed decision. It is even better if you can talk about their needs to see if what they think they want will actually do what they are seeking. You many find that some other product or service you offer may better meet their needs, or maybe you can't meet their needs at all. If you can't meet their needs then it is always best to try and refer them elsewhere. Many times this will result in future sales to them when what they may need is better suited to your business.

You can get more information about Business Marketing at http://www.BizRave.com . Eric Menzies writes about Web Site Marketing Strategy and other topics.