Every service business has had one or two clients that fill them with a sense of dread. The business relationship may have started out well and then turned sour. Occasionally, there are those clients that were predictably difficult and that pit in your stomach told you they would be from the very first phone call. Depending on the status of your business and cash flow, you may choose to grin and bear it. You may also wonder how you can prevent future toxic client relationships.

Toxic client relationships can negatively affect service-based businesses. Here's how to deal with them and red flags that would have predicted them.

How Can You Tell a Client Relationship is Toxic?

It's easy to tell when you're in a toxic relationship because they're draining, exhausting and challenging to your resources.  You may not even realize it in the moment but after a phone call or meeting, you're frustrated, angry or just plain tired.

The original agreement probably started great - a client was looking for a service or project and your business seemed like the perfect fit. Soon, you realize that nothing you do will make the client happy. Maybe you're not a good fit after all or maybe the client really isn't sure about what they want. 

Or, from the beginning, the client may have been throwing red flags that you weren't heeding. Here are some things that could predict toxicity in a client relationship:

• They're concerned about cost more than value. Of course your clients want a fair deal but if you're feeling especially nit-picked on costs, this may be a sign that the client doesn't respect your time.

• They overstep their bounds. Scope creep and calling you at all hours may mean that you've not set strong boundaries with your clients. 

• They don't like anything you do. There's nothing more frustrating than a client who hires your business for expert help but then pushes back over and over again. If they aren't clear about what they want, how can you do good work for them?

• They don't pay their invoices.  If they're not happy with price or what you've done for them, they may feel entitled to not pay your invoices on time or at all.

How to Deal with Toxic Client Relationships

If you recognize any scenarios from the above list, you may be asking, "Ok, but what do I do?"

The first step is to take a deep look into your own finances to see if you really need the potential income from this client. Should you fire the client or do you need a different approach in all of your client relationships? Consider the following:

• Organize your finances or cut expenses. If you feel like you're in a rut and need to take on every client, you may only need to get your business accounting on track.

• Set boundaries. Create new policies with consequences to prevent future scope creep and non-payment. 

• Build a checklist of your perfect client and red flags to recognize. 

• Charge extra fees. Limit the number of revisions and charge fees for more. Add on late fees for non-payment. Charge for excess time for unscheduled phone calls. Or if you detect the client will be especially challenging, price yourself out of the deal. 

• Write contracts that include clear descriptions of what the client can expect from you with regards to the services provided and the details of any expectations from either of you. Get your client's signature on the contract so you will be protected if the situation turns especially litigious.

For existing clients, it may be time to have a difficult conversation.  Is it time to extend the scope of the project for more money? Remember that your time is valuable and should be respected. Respect your own time and you will more likely attract clients who do the same.

Is it time to end the business relationship? Let the client know that you have done all that you agreed to or that the client didn't offer the required elements to complete the project.  It's okay to fire a client or end the relationship if it isn't working out.

Also, you deserve to be paid for the work you've done. Don't question the validity of your work simply because the client's expectations couldn't be satisfied. Even if the client was fired, you are still owed for the time you spent. 

Don't allow toxic client relationships to pull you away from other clients that will be good for your business. Recognize when you're feeling like your time and efforts are being taken for granted or when the client isn't clear about their own expectations. Your business resources can be better served.