Work with good clients —> life is good.
Work with bad clients —> life is bad.  

As a guy who's worked with literally hundreds of business owners over the past 8+ years, I've had the opportunity to work with some amazing clients—and I've worked with some clients who are complete fu... well, let's just say some haven't been so amazing. 

I’ve learned time and time again that my quality of life (and my team’s quality of life) is directly proportional to the quality of the clients that we sign.

To help ensure that we work with more great clients and fewer bad clients, I've put together a grocery list of the things that (I believe) make a great client.

Today, I'm sharing my list with you in the hopes that you can apply it to your sales process and end up working with some gems! 

Item #1: Values Alignment  

I’ve said it before and I’ll say it again: 

If your Fractional CFO clients don’t share the same or similar core values that you and your firm have, you are in for a bumpy ride. 

But let me ask you two (potentially) tough questions: 

1. We all know that, in theory, we should have values alignment with our clients. But let’s be honest here: When was the last time you actually asked a potential client what their core values are? 
2. Do you even know what YOUR core values are? Do you have them defined? On paper? Consider this a friendly reminder to get that done if you’ve been putting it off. You’ll thank me later.

Do not waiver on this one. 
No exceptions. 
Ever.

Item #2: Their Needs Align With Your Scope

You obviously want to work with clients that need what it is you’re selling. 

But where we get into trouble is when we agree to provide services to our clients that we don’t want to offer. 

We’ve all been there before:
You find a seemingly GREAT client.
They want to work with you.
You want to work with them.
They have money.
You need money.

They just want… 

Bookkeeping, tax, attestations, weekly meetings, in person meetings - they want SOMETHING you’re not keen on delivering. 

You end up taking the work, because, well, money. 

But we all know how this story ends. 

You resent the work and the client and you lose that fire in your belly. Your work quality is likely to become subpar and the client knows it. No bueno. 

If their needs don’t align with your scope - consider staying away. 

Item #3: Reasonable Timelines 

One of my coaches recently told me that a big gap in my sales process was that I wasn’t asking prospects what their timeline for results was.  

Here’s what I mean: 

During the sales process, I ask prospects what business/financial results or outcomes they hope for a Fractional CFO to deliver. 

They usually have the same types of responses:
✅ Increase profitability by x% 
✅ Reduce debt by $y 
✅ Decrease taxes
✅ Bump EBITDA

It’s essential to understand what they’re hoping to get. 

But what I wasn’t doing was asking, “…by when?” 

It’s important to make sure that you and your clients agree on what a reasonable timeline is before you start working together. 

If they’re thinking that a Fractional CFO is going to take a 3% NPM P&L to a 19% NPM P&L in 30 or 60 days, then there’s a problem. 

(Yes. I say this because I’ve experienced these exact expectations before.) 

Item #4: Ability To Pay

“Great clients” with no money don’t help you pay your mortgage. 

If you’re a new Fractional CFO that really needs clients and they’re broke or they simply can’t afford your services, walk away. 

If you’ve got money and you want to take a flyer and gamble that you can turn them around, then go for it. 

Item #5: Good Enough Communicator 

Man, it’s painful when you get a client that is unwilling or unable to communicate. 

I’m not saying that all of your clients need to be GREAT communicators, but they need to at least be a good enough communicator. 

What qualifies as “good enough”? 

• Timely-ish responsiveness 
• Lets you know what’s on their mind 
• They listen and keep an open mind to what you say

If you recognize that a potential client doesn’t meet the good enough standards then you can reasonably expect that they’ll be the same way once they are a client.

You don’t need that.

The Application

Don't let the allure of new revenue seduce you into taking on a bad client (or a client that is bad for you).

Clients that aren't a good fit will slow you down and reduce your bandwidth to work with better clients.

I like to think of the sales process as similar to the hiring process: not only should the client screen you to make sure you're a good fit, but you should also screen the client for the same reason. 

Remember:

Work with good clients —> life is good.
Work with bad clients —> life is bad.