That equation is the foundation of our profession's client management practice theories. Good clients are the ones with a checkbook and a pulse. Not to mention that the checks don't often clear. That sucks, and so does our profession's theories.
But one key to firm growth and profitability is making sure the wrong clients do NOT get into your firm. This seems counterintuitive. We've been taught that if we tell everyone we can serve them, then we'll get a lot of clients. But actually, the opposite happens. When you are for everyone, then the world knows you are really for no one. You confuse your market place when you aren't bold enough to say whom you serve - and whom you don't.
The bad clients take up room for good clients to come into your firm. So make client choice a huge part of your firm's processes. And start firing the wrong clients so you can make room for the right clients to come into the firm. Keeping a Clean Client List has been one of the greatest efforts we've employed to help our firm prosper. But it takes guts, and the ability to know when you've met the right client.
Do you know whom you serve?