Mastering the Graceful Exit: How to End a Client Relationship Ethically and Legally

Hi there, dreamers & dynamos,

Welcome to contracts 101.

Okay, let’s be real, at some point in your wild business journey, you’re going to have to part ways with a client. It’s sunshine and roses when the client gets the results that they want and is ready to sail off into the sunset.

But…

Sometimes, that’s not the case and you need to be mentally and legally prepared to cut bait with a client that just isn’t a good fit for you or your biz.

In the vast landscape of business, we all envision building strong, lasting relationships with ideal clients - those who appreciate our expertise, understand our processes, and submit timely payments. However, sometimes, the reality is far from this idyllic dream. There are occasions when it becomes necessary to discontinue a client relationship. The challenge lies in doing this both legally and gracefully.

Let's journey through this intricate process together.

The good news is that if we pay attention, there are often some bright red flags for us to pay attention to.

Warning Signs from Client Behavior

Every relationship has its rhythm, a unique dance of sorts. When the rhythm gets disrupted, it’s time to take note. Several behaviors might serve as your alarm bells:

Contract Cold Feet

If a client hesitates or downright refuses to sign a contract, they're not only dodging commitment but also signaling a potential lack of trust or transparency. Starting a relationship with such an inauspicious beginning can make future collaborations rocky. A well-written contract can be a fantastic screening tool to make sure that iffy clients opt out before your relationship ever starts. Never be afraid that your contract is too long or too complex, take the time to explain it to potential clients, make reasonable adjustments, and theirfeedback will tell you what you need to know about working with them long-term. Anyone who is isn’t willing to sign your contract, isn’t someone that you really want to work with.

Deposit Dance

Another red flag is the client who refuses to pay a deposit. A client reluctant to pay a deposit might be grappling with financial challenges, or worse, they might undervalue what you bring to the table. Financial disagreements at the outset can often foreshadow more significant disputes down the line. Don’t bend over backward if a client is giving you a difficult time about submitting a deposit. Your work has value and you can respect both yourself and your client by holding firm to your prices and policies.

Ghosting - Light

Clients who consistently ignore your questions or appear disengaged might be spread too thin or could be re-evaluating the project's relevance. Either way, this pattern can lead to misaligned expectations. When a client goes silent, they are often halfway out the door already. Or worse, they just don’t respect your feedback and, thus, are unlikely to be thrilled with their results. When a client is totally MIA, something is likely up and it may be a good idea to move right along.

Boundaries? Never Heard of Her

That midnight text or the unscheduled call during your off-hours? It’s not just disruptive; it's a sign of disregard for your personal space and work-life balance. You already pour tons of time and effort into your work and, usually, you are delighted to do it because you love your clients. But, a client who doesn’t respect your limits, is not going to change their stripes and suddenly fall into line. No amount of money is worth your mental peace of mind.

The Icky Feeling

At times, a collaboration might seem off, even if you can't pinpoint why. Listening to that inner voice can often avert a crisis. Not everyone is a fit for everyone, so as much as you want to serve (and grow your biz!), go with your gut and protect your inner zen by vetoing clients that just don’t sit right.

The One Step Forward, Two Steps Backward Shuffle

If despite your best efforts, the client dynamic isn't evolving, it's an indication that things might never align as you hope. Clients who aren’t progressing or keep surfacing the same stumbling blocks might be better served, and happier!, with another coach or service-provider.

The Monopolizer

One client shouldn’t consume more of your time than multiple others combined. If they do, it's worth assessing if the investment matches the returns, both financially and emotionally. It’s fine if a client needs a little extra TLC for a season or during a more intense period of collaboration, but if they are in a perpetual rabbit hole of need, it might be an indication that it’s time to say goodbye.

Expertise on the Sidelines

When clients frequently dismiss your recommendations, it might be that they're seeking validation, not expertise. They want you to “okay” their decision-making and give them permission to keep on keeping on. Unless I’m mistaken, that’s not what you offer and this can be exhausting and counterproductive in the long run.

Pervasive Negativity

A consistently pessimistic or cynical client can erode your motivation and creativity. While feedback is valuable, a never-ending barrage of criticism can be detrimental even if it is self-directed. Check to make sure their attitude is a fit for your business and that they are actually ready to embrace a successful coaching relationship.

Considering Alternate Routes

Before cutting ties, there are some detours worth exploring to make sure the relationship isn’t salvaging.

Revise the Agreement

Initiating a new agreement can serve as a reset button, addressing previously unforeseen challenges and aligning expectations afresh. Giving everyone a fresh start can be revitalizing and this gives you both a chance to press reset on expectations and responsibilities.

Adopt Different Communication Channels

If emails get lost in translation, perhaps video calls might be more effective or even a good ol’ fashioned phone call. Not your thing? Maybe texts are a better format for quick check-ins. Personalizing interactions can rebuild bridges and can be easy to implement.

Self-assessment

It's always useful to turn the lens inward. Could the challenge lie in our perception or approach? Sometimes, a simple shift in perspective can transform a relationship. Are you imagining problems that the client hasn’t expressed? Are you closed off to the client for some reason? Are you just in need of a nap, a snack, or reframe?

Crafting a Tactful Exit: Steps to Move On

If you've weighed the alternatives and still feel parting ways is the best option, here's how to do it with dignity and care.

Revisit Your Contract

Dive deep into your agreement, especially the cancellation or termination clauses. Adhering strictly to the outlined steps minimizes the risk of potential legal backlashes. If you don’t have those clauses in your contract (why not?! Hit up my shop for rock solid client contracts with all the key clauses), there are still options. Follow the steps below and you can still regroup with your reputation and bank account intact.

Complete Pending Commitments

Bring ongoing projects to a logical close, ensuring the client isn't left stranded, which also showcases your professionalism. If you’re in a long-term deal, choose the immediate deliverables and then provide ample timeline for the client to cover for the balance of the undelivered work.

Establish Direct Dialogue

A face-to-face meeting, or at minimum a phone call, is essential for this type of discussion. Personal touch matters, especially during sensitive times. Connect with the client through whatever your common communication channel is but request a time to hop on the phone. Don’t do this via social media.

Strategize the Conversation

Walk into the talk prepared. Outline the core issues, but also be open to feedback. Remember, it's a two-way street. Don’t focus on your frustrations with the relationship if you don’t plan on being open to trying to fix the fit. Instead, explain what isn’t working and how that will result in the client receiving less than satisfactory results.

Accentuate the Positives

As you discuss challenges, also shine a light on the successes and shared achievements. It lends a balance to the conversation and you want to leave the relationship on a positive note.

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Offer Alternatives

Suggesting other providers isn't just a goodwill gesture; it also eases the transition for the client, ensuring minimal disruption to their projects. It’s good form to provide a list of potential service providers who you genuinely believe may be a better fit for meeting your client’s needs.

Detail the Exit Strategy

Clearly define the next steps, from pending tasks to financial settlements. Do they owe you any payments? Do you need to reimburse them? How and when should those payments be made? Setting clear deadlines ensures both parties can move forward without lingering uncertainties.

Conclusion

In wrapping up, remember that ending a client relationship is a nuanced task. It's not about pointing fingers but ensuring both parties find their best fit. Every end paves the way for new beginnings, and with the right approach, you can ensure those beginnings are harmonious for all involved.

THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.