Staying Tough

You can't go into business on your own without learning to be tough when the need arises. That includes firing clients, learning to say no--and mean "no"--and refusing to rely on a single client for the bulk of your business, even if that results in reducing your income temporarily.

That's the reality I've had to embrace since leaving my full-time job with benefits and going out on my own nearly five years ago. Here are a few of my horror stories and the lessons learned from them:

• Don't put all of your eggs in one basket. After gradually building up an income I had reduced by 75 percent when I left my full-time job, I should have known better than to rely on one client for 80 percent of my income.
  
  So when 2006 came to an end and I still didn't have a contract for the following year, I decided I would never put myself through that again. The contract did come through, but I spent the next several months diversifying my client base. In June 2007, I exercised the "60 day out" clause in my new contract with that formerly major client.
  
  
• Learn to say "no" and mean no. Some clients will invariably ask you to do more and more (outside the parameters of your contract). You may decide to take on a minor amount of additional work for a large client in the nature of "good will," but don't do it if it's time-consuming--and only if you can say "no" the next time around.
  
  I learned this lesson the hard way. First I said "yes" to reviewing some photos, then to looking over a project layout. The requests kept coming: Go back through the entire technically reviewed project, make calls to get photo release forms, respond to e-mails and so on.
  
  I finally put my foot down and responded to the last request by saying: "I would be glad to consider doing this at my regular hourly rate. Would you like a proposal from me for an estimate of my time?" Note: These "extra" requests quickly stopped.
  
  
• Know how and when to fire bad clients. What's the definition of a bad client? For me, it's a client who becomes bureaucratic, political or isn't forthcoming. Or it's simply a client who's no longer fun to work with. Firing a client, particularly when you're building up a small business, is tough.
  
  Here are the parameters I set for myself: If I'm unhappy doing work for that client--for whatever reason--for two weeks or more, it's time to cut the ties.
  
  How does one diplomatically fire a bad client? First, say as little as possible. Don't over explain. Here are some examples of what I've said: "Other responsibilities preclude me from continuing this work. I wish you the best of luck in the future." Or, "I am unable to continue this work for you. Thank you for your past support." Note: Always have an "out" clause in your contracts (which allows either party to terminate a contract upon a specific number of days' written notice to the other party).
  
  
• Don't beg for money. A good friend of mine who is a longtime human resources consultant has clients he knows are very slow to pay. So he literally shows up on the client's doorstep with his completed project--but he doesn't turn it over until he has his check in hand.
  
  I wouldn't suggest going that far. But I have repeatedly contacted a client or his or her accounting department asking for a check that's overdue. At some point, you'll realize your own value and that there are plenty of other clients out there. (As I write this column, I'm on the verge of sending one such client an e-mail telling her I'll no longer be able to do work for her organization.)
  
  



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My last tip is to network with as many professional women in your field as you can. I rejoined various communications-related organizations when I was trying to decide whether to go out on my own, and I continue to receive invaluable assistance from other women who've had their own successful communications businesses for 20 years or more.

Barbara Mulhern is president of RB Editorial & Consulting Inc., a family-owned editorial and safety consulting firm.