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By Anica Oaks

As an entrepreneur, it’s important to be selective about your clients and the work you take on. While more clients may give you the capacity to earn more money, adding to your roster means more time spent away from your family, more hours stuck in traffic, and less time to work on the projects you really care about. Read on to consider the various deciding factors in taking on new clients.

Can you afford it?

It’s important that you set aside enough money to support your existing clients. Being stretched too thin financially isn’t good for you or your business, which means being able to answer yes is a must. It may be difficult, but try and objectively decide how many new clients you can handle before taking on new projects.

If your client base is already large and diverse, then adding just one more project might not make an appreciable difference in terms of time management. If all of your current clients are similar in nature, then taking on another high-level project with the help of project management software may make sense for your current situation.

Will the client be profitable?

One of the best indicators of whether or not you should take on a new client is whether or not they will actively bring in more money. Taking on new clients when you already have more than you can handle won’t help you make the revenue you’re hoping to achieve. Avoid expanding your client base without first evaluating whether they’ll actually increase your workload (or bring in higher profits).

This is especially important because new clients might be less understanding of your time constraints than existing ones and could use it as an excuse not to pay you for previous projects. At a minimum, you should run background checks on any potential new clients and check their ratings with past freelancers so that you don’t end up working for someone you’re not compatible with.

Does this client have realistic expectations?

Make sure your client understands exactly what you are going to do for them and what they should expect from your relationship. Tell them about your average service levels and how long projects typically take. Make sure you have a clear contract that sets expectations from both sides.

When considering a new client, don’t be afraid to gently push back if you sense unrealistic or unachievable expectations. Everyone has an agenda with their business: yours, theirs, and sometimes one hidden in there somewhere that we can’t see.

Taking on new clients can seem like an exciting prospect, but it isn’t always the right decision to make. If you do decide to take on new clients, keep these steps in mind to ensure that this leads to happier customers and more revenue over time.

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Anica Oaks is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote.