They were 35% of our revenue.
We let them go anyway.
It was the best business decision we ever made.
The situation:
Great company. Nice people. Interesting work.
But every project was chaos: → Scope changed weekly → Feedback was inconsistent (different stakeholders, different opinions) → Timelines were always "urgent" → Our boundaries were constantly tested
We said yes to everything because they were our biggest client.
The math that finally woke us up:
We tracked profitability per client for a quarter.
This client: -12% margin (yes, negative) Our average client: +34% margin
We were literally paying to work for them.
The harder truth:
Beyond the money, they were consuming our best people, our mental energy, and our capacity to serve other clients well.
Everyone on the team dreaded their projects.
The conversation:
We didn't fire them dramatically. We had an honest conversation:
"We're not the right fit for how you need to work. Here are some agencies that might be better suited. We'll help transition smoothly."
They were surprised. Then they understood.
What happened next:
Short-term: Revenue dropped 35%. Six months later: Revenue was higher than before, with better margins and a happier team.
The capacity we freed up went to clients who respected our process.
The lesson:
Not all revenue is good revenue.
A client that damages your margins, culture, and capacity to serve others isn't a client. They're a cost.
Have you ever had to fire a client?
#Business #SoftwareConsulting #LessonsLearned #Entrepreneurship
