When a client fires you, or any bad news lands in the business, the first thing to do is pause. Then get objective about the job that has to get done, decide what you’re going to do, and act swiftly. Save the reflecting for last, after the heat of the moment has passed. Handling bad news well is a skill that no one is ever taught.
Why does it matter how I react to bad news?
It’s kind of like a kid who falls down at the playground. When the parent loses their mind, the kid starts crying and freaking out. When the parent says, “Oh, you’re fine, get up,” the kid doesn’t freak out as much.
That happens with a team as well, and that team could be your contractors and your partners. If every single thing is an existential threat to the business, your team won’t perform as well as it could.
When you’re emotional, you’re also not going to make very good decisions. If you want to win, make more good decisions than bad decisions.
What’s the first thing I should do when a client fires me?
Pause. Don’t email back right away, and don’t get on the phone asking what’s going on and what’s wrong. Your immediate reaction to bad news is almost always bad.
In that moment I’d want to call the client and offer a discount. Or I’d want to tell them how they didn’t do their end of the work. None of that stuff is a good look.
For some people that pause is 10 minutes, and for some people it’s “I’ll deal with that in the morning.” People can sit with their uncertainty for 12 hours.
How do I figure out what the bad news really means?
Once you pause, you get control of your emotions, and that brings you objectivity. When we’re emotional, we think “lose a client, gain a client.” The better goal is to get objective about what this means for the business and ask what job has to get done here.
Our businesses change as we go. If that client hired me three years ago, my business could look different now. It’s possible I don’t want to do that type of work any longer, or that my prices have gone up since then.
The job to be done could be reducing the hours, changing the package, raising the rates, or cutting your expenses. Almost every time I do these things, the solution makes me more money than what that client gave me.
What do I do once I’m clear?
Decide what you’re going to do and act swiftly. I’ve got all these hours back that I used to spend on that client, so I decide how I’m going to use them.
Maybe I’m going to go pitch these three new people. Whatever it might be, you move fast now, because you’re clear and you’re objective.
When should I reflect on what went wrong?
Last. Some people reflect while they’re still feeling crummy, and it turns into justifying why the client left. They decide they shouldn’t have sent that email, or that maybe their prices are too high. You talk yourself into why what happened is actually okay, and that doesn’t help.
When you reflect after you’ve paused and acted, you’ll discover things you wouldn’t find in the heat of the moment, because that heat clouds your judgment. You may discover that you’ve lost your passion for providing that service. You may discover that the client’s business changed and you’re no longer a fit.
Should I handle bad news by myself?
Another way you can handle bad news in the business is to not isolate yourself. People around you who’ve lived that life before can give you a second opinion.
What should I do this week?
Here’s the homework. The next time bad news comes in, don’t reply until you’ve calmed down, even if that means waiting until the morning.
Before you think about replacing the client, write down the job that has to get done. Look at your hours, your package, your rates, and your expenses.
Then decide how you’ll use the hours you got back, and act swiftly.
This came from Businessing with Pat Miller. Watch the full July 15, 2026 episode.
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