Catching up on my reading, I’ve noticed more people talking about the idea that bigger (in terms of market share) is not necessarily better. David Maister has an excellent post on his blog about the pursuit of growth for the sake of growth in professional service firms. He also discusses how growth through acquisition can actually work against a firm’s goals for pursuing growth in the first place.
Many small businesses, particularly those that bill by the hour, treat any business as good business. As long as the customer is paying their bills. We hear about the importance of growth so often, it is not suprising how many businesses end up adopting a "growth for the sake of growth" mentality.
When working with customers on their marketing plans, the first thing we always talk about is the need to define their ideal customer (target market). We try to make our definition as narrow and descriptive as possible. Next, I suggest they consider firing all of their current customers that don’t fit the ideal customer description. You can imagine the looks that I get. Firing customers and turning away business isn’t "normal". I think there are many good reasons to fire these customers, as well as a right way to do it. One of the more compelling reasons, at least for me personally, is I don’t want to have to turn down a great customer with a really interesting project because I am to busy doing work I don’t really enjoy for customers that don’t value what I do.
How about you? Would you ever fire a paying customer?
