There are some in business who believe there is no such thing as a bad paying customer. Often times this is the same group that believe there is no such thing as bad publicity. Nothing could be further from the truth for any business owner looking to build a viable growing business. You need to choose your own customers from the pool of ones who wish to buy from your business.  That's right, you need to be in control of choosing your customers!

 Does that sound a little strange to you? Doesn't  it make sense to accept business from anyone who is willing to give you money? In my opinion the answer to that question is clearly NO! In business there are short sighted approaches to increasing the cash flow, and accepting anyone as your customer is one of them. Most people would agree that using misleading tactics to manipulate people into buying from you is not a good way to run your business. However, many  otherwise rational business owners think that they "can't afford" to turn down the business of any willing customer. This is a particular temptation when just starting a business and the cash flow is tight. However, the risk to the long term success of the business is greatest just at that time.

 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.

 Another group of  customers who many business owners will avoid are those that are seen as "problem"  customers.  You know the ones. They complain about everyone and everything in their lives. Nothing you can do will meet their unrealistic expectations of what you (and the rest of the world)  owe them. Often times this type of customer can be identified by their angry demeanor and complaints about other competitors in your industry. If you spot them early it is best to pass them by and let someone else deal with the headaches.  While they may be well able to pay you, working with such people is likely to be a nightmare not worth experiencing for most business owners. The art here is identifying them as early as possible so you can make a decision. The hard part is knowing how much of their complaints about  your competitors may be  actually accurate and  presents an opportunity for you. Being aware of the reputations of others in your  business can help greatly in this regard.

 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.