Customers who are credit risks or consistently pay late should be at the top of the list of types of customers you should turn away. But being slow to pay isn't the only thing that can make a customer undesirable.
Almost equally undesirable are customers who waste too much of your time. One type of customer typically wants to spend an hour on the phone with you asking for extensive details about the $39.95 special offer you advertised. Another type of customer changes his mind several times about the way he wants his project handled, and then doesn't want to pay for the extra time it took you to complete the work. And then there are the friends and relatives who want you to do some work for them... for nothing or next to nothing.
As a small business owner, you have limited time and resources. You need to use your time and resources to find and service customers who will be profitable to you and pleasant to deal with. Turning away customers who are of marginal value will give you more time to service the customers who make you the most money.
More >> The Fire Your Customers Myth