7 Reasons to Consider Small Clients

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7 Reasons to Consider Small Clients

Posted April 27, 2010 in Managing Clients, Marketing

Of course you want some large clients for your freelancing business. Large clients are often more stable, tend to pay more, and their projects may even add some name recognition value to your portfolio.

In general, having big clients is a good thing. Freelancers often ask how they can attract more large clients. That’s why we devoted a post to approaching big clients.

Smaller clients, on the other hand, tend to be overlooked. Rarely have we heard freelancers ask the question: “how can I find some more very small clients to work with.” Some freelancers even refuse to do business with small clients–choosing to focus exclusively on larger companies instead.

However, there are some benefits to including smaller businesses in your client mix. In this post, we’ll share and discuss those benefits.

The Worries of Dealing with Small Clients

One huge reason that many freelancers hesitate to deal with small or fledgling companies is the fear of not getting paid. For a freelancer, accepting work from a very small company may seem like a huge risk. Many small companies are so new that they don’t have a reputation built up (good or bad) and they may also be operating on a shoestring budget.

What’s a freelancer to do if they accept a project from a tiny client and the client goes under before the freelancer gets paid?

It’s a legitimate question, and no doubt one that is on the minds of many freelancers when a small business approaches them to do work.

However, this worry can often be overcome by charging a significant portion of your fees up front, before you start work.

Benefits of Working with Smaller Clients

Here are some advantages to working with small businesses:

Smaller companies grow. Steve Jobs reportedly started Apple computers in a garage. Microsoft also started small. Today, both companies are mega-sized corporations. How would you like to have worked with either of those companies in the early years? That small client you refused to work with this year might become a corporate giant next year.
People change jobs. Just because the individual who contacts you works for a small company now doesn’t mean that he or she always will. In a few months or years, he or she may find a new, larger employer. If you treat them well at the small company, they’re more likely to take your business card with them to the large company.
You can interact directly with the decision-maker. A definite advantage of working with a small company is that you can often speak directly with the decision maker. There is no level of middle management between you. The decision to use your services as well as the decision to finalize your project can be made quickly.
They are often overlooked. Sadly, smaller clients are often snubbed by freelancers who think that taking on a small project isn’t worth their time. If you do accept projects from small companies they are more likely to realize that you are taking a risk with them and appreciate your effort.
Everybody knows somebody. Even though your client may be small, that doesn’t mean that everyone he or she knows is in a small company. Your client’s neighbor or family member may be the decision maker at a large company. Do a good job for them and they may provide you with a lucrative referral down the road.
Can become part of your unique selling proposition. The fact that you accept small clients can become part of your unique selling proposition. I once saw this phrase on a competitor’s site and it impressed me as being different: “no project too small.” What a relief that phrase must be to a small company who is having trouble finding someone to accept his or her project.
Just because they’re small doesn’t mean they don’t have money. While many small companies that are startups do operate on a shoestring, that’s not always the case. The small company may have received funds through a grant or through venture capital and their project may be nearly as well funded as a project from a larger corporation.

Of course, including small businesses in your client base doesn’t necessarily mean that you should only pursue small clients. Ideally, most freelancers will want a mix, although a few may choose to make working with small businesses their specialty.

Tips for Working with Small Clients

Working with small clients can present some special challenges. Here are some tips that may help:

Don’t compromise your rates. Just because you’re working with smaller companies doesn’t mean you have to work for peanuts. Rather than lowering your rate for your small clients, try one of the techniques below.
Look for a solution that fits their budget. While a small company may wish for a custom-designed website and a new logo, they may be able to get by at first with just the logo and use a standard WordPress theme. As their needs grow, you can upgrade them to a more customized approach.
Offer phased work. It is sometimes helpful to a small company to divide a large project up into smaller projects or phases that they can pay for individually. While a small client may have trouble coming up with $3,000 at once for a new website, $500 a month over six months with one phase completed each month might be more affordable.
Provide consulting instead. Sometimes the client is even too small for one of the approaches above. In these cases, you may be able to offer to consult with them and help them develop a step-by-step plan for meeting their needs at a later date.

My Experience

While many of my clients are medium-sized or even large companies, I’ve had a few small clients as well. I particularly remember working with one individual on a very small writing task. When it was done, I never thought I’d hear from my contact at that small company again.

However, about eight months later I got an email from him. My contact was now with a much larger company and guess what? They needed a writer. The project this time was worth a lot more money–several thousand dollars, in fact.

Without my contact from the small company, I would never have learned about the second opportunity. With his support, I was the only writer that they even considered.

Do You Work with Small Clients?

Do you accept work with very small clients? What advice would you offer to other freelancers regarding small clients?

Share your ideas and stories in the comments (without mentioning any client names).

Image by memotions

About the author: Laura Spencer is a freelance writer from North Central Texas with over 20 years of professional business writing experience. If you liked this post, then you may also enjoy Laura’s blog about her freelance writing experiences, WritingThoughts. Laura is also on Google+.

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54 Comments

Pawel @ Minimalist Business
April 27th, 2010 at 8:35 am

This is all absolutely true.

And often small clients help you to get by when the big boys are quiet and don’t send you that much work.
Avonelle Lovhaug
April 27th, 2010 at 8:47 am

“Of course you want some large clients for your freelancing business.”

Uh, no. I actually prefer small clients and have focused my marketing efforts on them. (This is the only part of the post I didn’t agree with!)

In my experience, larger organizations aren’t any more stable. Last year my second largest client was closed by their bank. It was the only time I didn’t get paid by a customer.

And large organizations have many layers of bureaucracy that are a pain to deal with.

“Very small” clients aren’t a good fit for me either, but my three best clients have 5-10 employees. They all pay on time or in advance.
Jordan Walker
April 27th, 2010 at 8:52 am

Thanks for the article Laura, your points are very valid. I really enjoying working for small clients as they are usually the best to work with, in my opinion of course :) . It is always nice to have two or three whoppers / whales but using small clients helps diminish the feast – famine cycle.
Laura Spencer
April 27th, 2010 at 9:13 am

Thanks for the comments everyone!

Avonelle Lovhaug–It sounds like you already understand the point of post. I’m so glad that you enjoy your smaller clients. :-)
Greg Brooks
April 27th, 2010 at 9:23 am

Call me a skeptic — or just a guy who doesn’t like working with small clients, I guess — but I’ve never had a small client that went smoothly. Having said that, I’ll say this as well: That’s some great advice you posted and I agree with nearly all of it, for those chasing the small-biz segment.

Rules I’d add:

* It’s almost never a good idea to be a client’s first marketing/PR vendor. Training clients takes time and can be frustrating; let someone else do it on their nickel.

* If you’re going to work with small clients, do *everything* you can to cut administrative overhead. Generally (although not always, as the article points out), smaller clients mean lower billings — but overhead doesn’t flex as much as the billings do. I know one practitioner who made small clients work for his business by only taking them on for fixed-fee projects. By eliminating timekeeping and detailed, hours-per-task invoicing, he cut his overhead down enough to make the smaller project fees work.
Avonelle Lovhaug
April 27th, 2010 at 9:31 am

@Greg: Interesting point. I only take fixed fee projects anyway, so perhaps that is part of why I prefer small clients.

I do think that a lot of the evidence on boths sides is very anecdotal. There are probably plenty of small organizations not worth dealing with, and in a large company it may dependent on the individual department.
Jerome Bohg
April 27th, 2010 at 9:38 am

Good article! Speaking for myself I prefer a good mix between small and mid-sized clients. Small clients are usually smaller projects, smaller projects may mean smaller budget but if you were to do 5 small projects each month it could cover the expenses for that month. Bigger clients (projects) = more work and takes longer to send invoices, unless you cut it in bits each month. Anyway, I think it is good to be flexible and not to turn down smaller clients. Especially the reasons you mention of people going to bigger companies and remembering your work, it pays off eventually.
Chris Mower
April 27th, 2010 at 9:47 am

Hi Laura, you’ve made some great points in this article. I’ve worked for some really big clients before and also some smaller ones. It’s a toss up for me which I prefer, so keeping them both in the bag is a good idea.

Both small and large clients have the potential to not pay and waste your time with uninformed or wishy washy decisions.
Andrew
April 27th, 2010 at 10:28 am

I only prefer big clients, small clients in my opinion usually never have the funds to allow me to continue freelancing. I have always had trouble with small clients wanting free things, or extra stuff. They are also usually ignorant about pay, and think that web design is a quick “get er done” kind of service. However with big clients I tend to make alot more money, sometimes 3 times as much. Usually they seem more professional, and have no problem when it comes to pay. I usually reject all smaller companies since I can make alot more money from a larger business, rendering work for them useless. I think in freelance if you want to make 100k you have to go after large companies, its near impossible with smaller business.
Cook
April 27th, 2010 at 10:58 am

nice informative article…thx a lot
natasha
April 27th, 2010 at 10:59 am

very valid points…thanks Laura
Pam
April 27th, 2010 at 11:16 am

Like some have mentioned and you did as well, we love our large clients. But we also love our smaller clients and for some reasons not mentioned.

We can forge a closer relationship, and we enjoy educating fledgling groups. We feel everyone benefits, the client, ourselves over time, and the profession as a whole. I certainly cannot say how many times I have heard the complaint about budget “designers” not educating clients, and as a result perpetuating all the wrong expectations.

Also, as wonderful as large clients are, the jobs can be far between at times. Working with smaller clients tends to keep a steady flow through those drier periods. Plus a happy smaller client who has received cost-effective solutions tends to talk about it….show it off…and bring in more business.

Great post Laura :)
Jeff Fisher LogoMotives
April 27th, 2010 at 11:22 am

Great article, Laura!

For 32 years smaller business clients have been the backbone of my design business. Frankly, I enjoy working with smaller clients the most. There is an enthusiasm, passion and vested interest in the end product that doesn’t exist in projects for most larger corporate clients. In the majority of smaller business interactions, I have also not experienced the numerous unnecessary meetings, and multiple levels of lack of approval, that are often elements of larger client efforts. Greater creative freedom in creating designs has been an additional benefit of working with smaller clients. For me, that has translated to a lot of enjoyable, creative work that has been recognized with industry awards and publication is design books and magazines. I’ve worked with some of my smaller clientele for up to 20 years now – and incredible professional and personal relationships have developed over time. I’ve always appreciated the fact that satisfied smaller clients have been quick to recommend my work to others – both small and large.
Matt Pritchett
April 27th, 2010 at 11:39 am

Great post Laura!
Small clients are my icing on the cake. While (mostly) they don’t keep the bills paid, they do provide extra income and keep me happy. There is something to be said about being able to invest in a business and really get to know who you are working with. I often take nonprofit organizations, who often times are only 5-10 employees strong, but I come out of the deal with some extra cash, and an appreciation for what they do (and often times a few referrals!). Thanks for another great post!
Jonathan B
April 27th, 2010 at 12:03 pm

Great article!

I didnt realize all the benefits we can get from small clients.

Ty :)
Web Design Maidstone
April 27th, 2010 at 1:45 pm

I love the smaller clients, you speak to the boss and the cheque writer, they pay on time and its not a design by committee! There are downsides but many more upsides
Gladys Strickland
April 27th, 2010 at 4:19 pm

Agree with what you say. So far, all my VA clients are small, and it has worked very well for me. I believe I can relate better to where they are because I’m a solo business owner myself. I’m rather pleased to know that many freelancers pursue the larger clients – that means my target market is often overlooked by others!
Cory
April 27th, 2010 at 4:25 pm

We make it a point to primarily focus on small clients and small startups in our area.

Our main reason for doing this, is that we can interact directly with the people at the top. This allows us to make projects move faster, decisions get made faster, and typically the overall process runs way smoother.

Smaller clients are almost always repeat clients as well. Small businesses tend to grow and expand quickly and when they do, they often need more work done.

Another point that I would like to make is this……always truly research and get to know your client, both big and small. It goes a long way in meetings and interactions when you can truly sit back to talk about them, their company, and their line of work. It makes you look extremely personable and knowledgeable when you can do that.

–Cory
thehalvo
April 27th, 2010 at 4:56 pm

legit post.
Laura Spencer
April 27th, 2010 at 5:03 pm

Thanks to everyone who has joined the conversation.

I’m pleased that so many of you already include small clients in your customer base.

Of course, it’s purely a matter of preference–so, I’m not surprised to hear that a few of you prefer to work solely with larger clients.

Keep the comments coming!
Birgit Schultz
April 27th, 2010 at 5:47 pm

Small clients always pay and usually in time! Big companies take much longer and try to negotiate afterwards. One of the many reasons I like working with small clients. Good post!
Bradley
April 27th, 2010 at 10:44 pm

I never usually comment, but this article was amazing.
So I just wanted to show my appreciation and say Thanks!
Jason Cross
April 28th, 2010 at 8:31 am

I find my niche market is small business, my main client is a 1 man band with a full time job and doing his business on the side. Not only have I been able to save him time, I’ve educated him on ways to improve his business. Larger clients I’ve dealt with don’t usually want to take the advice you give them as they already have the bubble idea commited.

The other advantage is smaller clients do have alot more connections in business and because you have dealt with them personally, their word of mouth travels further.
Hilde
April 28th, 2010 at 10:22 am

Hi!
And thanks for a great article! I agree on most of the things you write indeed. I’ve worked on and off freelancing myself for about 10+ years now.
I work with some graphic design, businessplanning and economy. In my case I do get some bigger clients and projects once or twice a year but I always aim for the smaller clients. My experience is that they are often easier to work with as I get one contact to deal with, they seem to be more faithful when it comes to returning to me the next time they have new tasks etc. :)
chris
April 29th, 2010 at 9:24 am

Good post Laura.
I have to say that small, mid and large companies all have their pros and cons, so why cut one out of the mix?

Does size matter?
To be able to turn down work because of the size of a company might fit some business models but not all. I guess the bottom line is how does it effect your bottom line, and adjust from there.
jv
April 29th, 2010 at 11:29 am

Dutch translation: http://www.b2bcontact.nl/sales/1056-7-redenen-om-voor-kleine-klanten-te-kiezen
Alice Dagley
April 30th, 2010 at 9:23 am

Every client is important. Of course I can’t say that working with a small client is better than a big one. It happens to deal with “Big fishes” once a month or even once a year. And willy-nilly we have to deal with small clients. However I prefer working with large companies)
Custom Facebook Applications
May 6th, 2010 at 3:33 am

well i think dealing with a small client is much better then the big client because big client always have some issue regrading work but it does not mean you don’t work with big client because to get success you must catch one big fish.
Josh
May 6th, 2010 at 10:12 am

I way prefer working with small clients as opposed to the larger ones. I only accept fixed fee projects with a 50% deposit before any work is completed. This allows me to bill a little bit extra than my hourly rate, anticipating any last minute changes or extra time (of course anything big that wasn’t in the contract is billed at an hourly rate).

I find the fixed fee allows clients to take me more seriously, and the 50% deposit lets me know they’re serious about getting the work done, and they’re less likely to bail on the project halfway through if they’ve already invested in it (and even if they do, it’s less of a hit for me to take)
Brett Widmann
November 20th, 2010 at 9:20 pm

This is a great article. Working with big clients can be good to get your name out there, but i think small clients give you the most beneficial and satisfied feeling at the end of the day.
Johnathan
January 9th, 2011 at 12:40 pm

Another thing about “small clients” , from my experience, is that they are much more grateful for the work you do. Specially if you make their first experience of getting themselves on the web a pleasant one. They are more likely to send you more clients and you are likely to become their “go-to guy” and get treated as a part of their company. Great relationships can come from this. I often get invited to “company shin-digs” , which has it’s perks.
Puge Teopengco
January 12th, 2011 at 5:13 am

I experienced working with both small and big companies. Most of the time, small clients tends to pay easily and tends to stay with you longer. Unlike with big companies that you have to call another collection company just to followup your check.
Web Design Folkestone
September 11th, 2011 at 6:23 pm

Smaller clients do have their advantages, as has been said already. One person’s vision is better that many’s.
vnc vps
December 11th, 2011 at 10:40 am

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Colton Mahalko
January 31st, 2012 at 7:19 am

I dugg some of you post as I cogitated they were very beneficial invaluable

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