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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!

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.

Business owners are best to be wary of customers who are a poor payment risk. It is tempting to sell to anyone in order to make a profit but in the long run you will lose money. The main problem is that these people are usually willing to purchase even thought they know they cannot afford the item or service that you offer. By the time you take these people through collections you will probably still wind up without any money. A result of this kind of business can be seen in the recent mortgage industry crisis. People who could not afford mortgages were approved and now cannot pay. As a result of these poor business decisions the country is now in a recession and we all suffer. Remember to do a through investigation into the financial capacity of potential customers and you will save yourself a lot of lost time and money.

The perpetually unhappy customer is another customer that many businesses will try to avoid. These customers are impossible to please, no matter how hard you may try. They are sometimes easy to spot, as they often seem angry and tend to complain about everything and everyone, including your business competitors that they have dealt with in the past. Therefore, it will pay off in the long run to be knowledgeable about the general reputation of others in the same business as yours. This will help you distinguish between legitimate complaints about other companies, which presents an opportunity for your company, and this group of complaining customers, who can be more of a liability than an asset. Although you may have some concerns about losing the income for your company, as a rule it's best to spot these complainers early and avoid the associated problems that come with them.

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.