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.

What reason is there to be picky about deciding on a customer base? There is an obvious answer that anyone who has run a business would know. Some people are unable to afford your services but that will not stop them from trying to buy from you. A good example of this is the 2007 -2008 mortgage crisis. It resulted from the banking industry thinking that they could make quick money from sub-prime borrowers. Trying to make money off a high risk customer base will often come back to bite you. The entire economy has gone into a recession as a result of it. IT would be just rewards if it weren't for the ripple effect. Small businesses go down this road and if you choose to accept questionable customers as well it is likely to be a poor business decision for you. Collection agencies might be in your future.

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 consumer organizations above are too often passed over by most companies. On the other hand, there are some consumers you will want to do without. These consumers have no need for your products or services. A lot of companies feel that it is up to the consumer to figure out what they want to purchase while the company is out to sell as much as they can to any consumer. But this is a not a good long term plan and will negatively impact your business. Once a consumer is dissatisfied with your product or service, you will be blamed, even if it is not your fault. You are well-advised to be honest from the outset and admit you are not sure your business can satisfy the consumer's desires and you cannot risk disappointing the consumer. To get around this problem, you need to accurately characterize your product or service with no hype typical with most ads. Let them know exactly what you have so they will be sufficiently informed. Better yet, find out exactly what they need to ensure that what they desire will actually perform up to their expectations. It may turn out that an alternative offering you can provide may work better for them, or you may not be able to satisfy their desires. If this is the case, it is best them to give them a referral to a place that can help them. You will likely get business from such a person at a later time when you might be able to help them.