July/August 2018

More articles in this issue:

• Pay Dirt
• LiDAR Lights the Way
• Cryptocurrency Is Impacting Traditional Sports/Esports
• iRobot’s Colin Angle
• There’s No Place like a Smart Home

As an owner, it can get sticky when you’re asked to do things that just aren’t in your company’s best interests.

Many small tech companies support larger businesses. But as an owner, it can get sticky when you’re asked to do things that just aren’t in your company’s best interests.

While every small business owner is (or soon will be) familiar with “bad customers,” knowing what to do when a good customer asks you to do something that’s bad for your business requires a careful approach. Sometimes you simply have to say, “Thank you. No thank you.”

The value proposition for a small company is speed and commitment. It’s worth a premium. It’s important to articulate your business model to your clients on every new project or assignment. Your work for your client represents a very small part of their expenses and mindshare. Let your client know that you are there to support them, and that you can do what they need done faster than most other groups.

Unfortunately, the value proposition rarely includes excess resources and budgets for feature creep. While communication about products and services always happens, communication about your value proposition and how to leverage strengths and avoid weaknesses is often a missed opportunity.

Take the Time

Keeping your client up-to-date quarterly on your overall business helps avoid misunderstandings. I book quarterly or biannual one-on-ones with my clients. Typically, in project meetings, there are a number of people on the working team: engineers, project managers, product managers and other stakeholders. I’d recommend making these quarterly update meetings one-on-one sessions. Three’s a crowd, and that can keep these strategic meetings from really opening up.

Book a dedicated meeting, where the only agenda item is talking about your relationship, your business, what’s working well and areas for improvement. That’s a great way to get feedback. What most CEOs don’t realize is that it’s also an opportunity to share feedback with your client. Let them know how you can help them go faster and get more done. Also, make sure to give them a high-level update about your business with other clients. Tell them what’s working well, and what’s not.

Even with the best communication, there still comes a time in most business relationships when it just doesn’t make sense, even at a strategic level, to accommodate a request. Be clear about your decision. Share your concerns. Tell them why you’re saying, “No thank you.” Don’t stop there. Ask why the request was needed.

I’ve kept clients happy by finding solutions to the problems they were trying to solve. Whether their request is an out-ofscope feature, supporting an event out of pocket, or a price reduction due to a client’s corporate signing limits, remember that you have the power to solve problems. As a small business owner, it’s what you do best.

While bad customers have to go, great customers always need accommodation. If you can’t absorb the cost or resources, don’t be afraid to say, “No.” Just make sure you don’t forget to say, “Thank you.”