Quote:
Originally Posted by PostandIn
Similar to some the above comments, if the business is dependent on a core group of clients for most of its revenue, you will want to know if there are contracts in place that give you some visibility of future earnings or otherwise understand the nature of the client relationships.
Further, you may want the current owner to introduce you to the key players with the most important clients so that you can establish relationships early and without undue pressures or odd-ball circumstances. Lots of small businesses are only as good as the relationships between the business owner and one or two client people. Likewise, you may want to jettison clients that are a net drag on operations at the time you take over. Lots of small businesses have clients that are not ideal and cause a disproportionate amount of care and feeding than they are worth. Smart companies unload clients (as tactfully as possible) that don't pay in the long run.
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Man, that's so true and something I wish I had known 15 years ago. I wasted so much time and energy on the worst customers for a while there.