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Some in the industry are of the opinion that the "bad" paying customer cannot, by definition, exist, though often enough such opinions come from the same group of people who state that there is no such thing as "bad" publicity. In reality, this is far from the truth, particularly for a business owner looking to develop a viable, growing business. Ultimately, you need to have the power to choose your own customers from the pool of those who wish to make purchases from your business. Yes, that is correct: you have to have control over choosing your customers!

Doesn't it make sense to accept business no matter who it comes from, as long as they are willing to give you their money? In my opinion this question can be clearly and emphatically answered in the negative. With business there is no shortage of short sightedness when considering ways of increasing cash flow, and this acceptance of any customer is one type of short sightedness. Most people agree that misleading and manipulating people into purchasing your products is not a wise way to run a business. However, there are many business owners that are otherwise rational that assume that they can't afford to turn away business, no matter how it comes. This temptation is particularly strong when first starting out in the business world and money is tight, but the long term risk to the success of your business is also at its greatest at this point.

You may wonder if it is really a good idea for your company to be selective about whom they do business with. There are some instances where it is definitely a plus to choose your customers quickly. As an example, there is a group of potential customers who will try to purchase your services even when they know that they can't afford them. If you allow them to do so, you may end up having to spend a great deal of time and expense on trying to collect the money owed your company, even having to turn the customer over to a collection agency. This is hardly good for a business. Yet there are many businesses who will take just such risk. The banking industry is an excellent example of what can happen when dealing with customers who can't afford their purchases. The 2007-2008 downturn in the economy was caused largely by the banking industry, which issued mortgages to customers who could not afford them.

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 above consumer groups are simple for business to ignore, however, another segment of the customer base that must also be passed on are those customers whose needs are not met by your products or services. In general, businesses tend to believe that it is a customer's prerogative to determine what to buy and the business will simply sell as much as possible to any buyer that deems their product worth purchasing. This behavior is near sighted and does not help with the growth of your business. If a customer buys something and is not happy with it, they are likely to place blame on the business that has sold this product to them. In the long run it is far more beneficial to tell a customer that your product may not meet their needs and expectations than to make a sale that will disappoint your customer. If you simply describe your offerings without trying to over sell it with hype this situation can generally be avoided. Inform your customer to the best of your ability what it is that you are offering and let them make an informed decision. If you are able to discuss a customers needs rather than the advantages of a given product you will be more easily able to match your offerings to the needs of the customer. In this situation it is not uncommon to find that another product or service that you have to offer may be more beneficial to the customer. It is also possible that you may determine that you can't meet the customer's needs at all. In cases where you can't satisfy a customers needs a referral to another provider is often the best solution. You will find that this builds consumer confidence and often leads to sales in the future when the customer's need is more matched to your product.