How to say goodbye to your clients – strategically & gracefully

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Now, this may sound a bit counterintuitive…

If you want to let your firm grow,
you sometimes need to let a client go.

When they cost more time and money than they generate revenue. When they no longer provide you with challenging and meaningful assignments. Or, when they weaken your reputation and position in the market.

So, how do you say goodbye – strategically and gracefully?

Professional services firms are people-driven businesses. A lot hinges on people and actual human connections.

As a result saying goodbye to a client is hard. So, when you do, you better do it for the right reasons and in the right way.

Step 1 – Decide who to let go

Firms that are serious about growth, understand which organizations are their ideal clients.

Not only do they know what industries and sectors these organizations operate in. They also know which pain points the firm can resolve for them.

However, a client may become – what some people refer to as – an ANTI-ideal client. They cost too much, bring in too little, and don’t improve your position.

Read that last line once more and I’m sure one or two come to mind. Write down their names. And ask your colleagues to do the same.

Once your list is ready, assess the risk of letting these clients go.

For each client, ask yourself…

• What them leaving you would cost the firm (and each partner) in revenue.
• How it would impact your reputation.
• What it would do for your position in the client’s industry.
• And how colleagues working for the client would be affected.

Needless to say, this is a list you don’t want to handle carelessly.

Step 2 – Decide when to let them go

Once you agree on the clients that have to go, decide when to say goodbye.

If there’s a natural moment in time coming up, use that. An assignment may come to an end, a contract may expire, or an annual review may be coming up.

When there’s no natural trigger point in the near future, you may have to force one.

Consider the work you’re doing for the client and find a moment that could function as a go/no-go decision point. 

Step 3 – Decide how to let them go

While you’re saying goodbye to a client, the one thing you’d want to preserve is the relationship with key people at the client.

After all, you never know where they will go, what they will do, and what they can mean for you and your firm in the future.

So, make the break up as graceful as possible:

• Focus on the loss of fit over time and the strategic misalignment between your firm and the client. Be careful not to sound condescending.
  
• Express your respect to the client and show appreciation for the past collaboration. Have a couple of highlights ready.
  
• Offer a transition period and jointly decide on an end date for your collaboration. Promise to wrap up any loose ends. And offer alternatives for the remainder of the work.

Before you engage in any conversation, make sure everyone involved agrees on the messaging.

Let me know what you think!

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Thank you for reading MBD Spark #90, sent on September 4, 2025.