Knowing Which Clients Not to Work With 5-23-26

Summary

Episode Overview

Podcast: Becker Business
Host: Scott Becker
Episode Title: Knowing Which Clients Not to Work With
Date: May 23, 2026
Main Theme:
Scott Becker delves into the crucial—yet often overlooked—business strategy of intentionally choosing which clients not to work with. He emphasizes that understanding who isn't the right fit for your business can be as significant as defining your ideal customer. The episode addresses the importance of selectivity in client relationships for sustainable growth and operational harmony.

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Key Discussion Points & Insights

1. The Significance of Client Selection

• Scott highlights that as businesses grow, not all clients are a good fit—financially or culturally.
• He draws a parallel to Maslow’s hierarchy, proposing that being selective represents a higher maturity stage in business development:
  • Quote: "One of the first Maslow's hierarchies in a business is when you get to a spot, you're successful enough, you're busy enough that you no longer have to work with those customers that are, for whatever reason, very difficult customers." — Scott Becker, 01:12

2. Operational Impact: Protect Your Team

• Difficult or abusive clients can strain team morale and productivity.
• It's not worth jeopardizing company culture or employee well-being for a problematic client, even if revenue is a consideration.
  • Quote: "If you're building a serious business, you can't work with people that are either incredibly difficult for your team to work with or that can't pay the freight that you need to keep the business going." — Scott Becker, 00:59

3. Financial Realities: The Numbers Must Work

• Becker uses the analogy of building a high-revenue law firm to show that low-paying clients aren’t aligned with large-scale ambitions.
• Businesses should focus on high-value clients who support long-term growth goals:
  • Quote: "If you're trying to build a billion dollar law firm, we can't work with individual practices that pay $1,000 a year. The numbers just don't work." — Scott Becker, 01:41

4. Strategic Clarity: Define Non-Target Clients

• Identifying who isn't your customer is as important as knowing who is.
• This clarity allows businesses to allocate resources, energy, and strategy toward relationships that truly matter.
  • Quote: "Knowing who's not your customer is often just as important as knowing who is your target customer. Both are very, very important." — Scott Becker, 02:21

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Notable Quotes & Memorable Moments

• On Building a Professional Culture:
  "You can't work with people that are either incredibly difficult for your team to work with or that can't pay the freight." — Scott Becker, 00:59

• On Evolving Client Standards:
  "There's a sort of Maslow's hierarchy in business of getting to a spot where you could choose are you working with customer or not working with them and then recognizing going forward." — Scott Becker, 01:21

• On Growth and Client Value:
  "If you're trying to build a billion dollar law firm, we can't work with individual practices that pay $1,000 a year. The numbers just don't work." — Scott Becker, 01:41

• On Strategic Clarity:
  "Knowing who's not your customer is often just as important as knowing who is your target customer." — Scott Becker, 02:21

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Important Segment Timestamps

• [00:57] — Scott introduces the episode’s theme: Knowing what clients not to work with.
• [01:12] — Articulates the “Maslow’s Hierarchy” of business evolution regarding client selection.
• [01:41] — Offers the law firm revenue analogy: the importance of focusing on high-value clients.
• [02:21] — Reinforces the need to clearly distinguish between target and non-target clients.

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Tone & Style

Scott Becker delivers the episode in a concise, practical tone, rooted in real-world business experience. His advice is direct, insightful, and framed in a way that is relatable for entrepreneurs and business leaders seeking sustainable growth.

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Summary Conclusion

In this focused episode, Scott Becker emphasizes the vital importance of being strategic about client selection. He advocates for the courage and discipline to avoid relationships that don't fit your business’s financial or cultural needs. Defining who your business will not serve, he asserts, is a key milestone on the path to scaling a successful and resilient company.

Transcript

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[C]

This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. Today's discussion revolves around knowing what clients not to work with. And often we think about this as important as knowing who your target customer is. So one of the things that we look at in building a business is if you're building a serious business, you can't work with people that are either incredibly difficult for your team to work with or that can't pay the freight that you need to keep the business going that you want to have. So when we look at this, we often think about business in stages. One of the first Maslow's hierarchies in a business is when you get to a spot, you're successful enough, you're busy enough that you no longer have to work with those customers that are for whatever reason, they are very difficult customers. They could be customers that are difficult to work with because they're very tough on your team, they're nasty, your team, whatever reason it is. But there's a sort of Maslow's hierarchy in business of getting to a spot where you could choose are you working with customer or not working with them and then recognizing going forward. If you're trying to build a billion dollar law firm, we can't work with individual practices that pay $1,000 a year. The numbers just don't work. You have to give too many customers to make that work. You've got to really concentrate your efforts around important clients, clients that can really pay the bills and really drive the business forward and and give your people the kinds of experiences they need to have. This concept of knowing which clients not to work with in whatever business you're in doesn't matter if you're in a wall business, a media business, a product business, knowing who's not your customer is often just as important as knowing who is your target customer. Both are very, very important. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. We hope you enjoy these short episodes. Thank you very, very much.

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