10 Red Flags to Watch For When Vetting a New Client

3 min read

From my own experience, and from working with hundreds of entrepreneurs in the Business Booster accelerator, I’ve learned that not all clients are equally beneficial for a company’s growth. Some become partners and drivers of success, while others consume resources, drain energy, and ultimately hinder development. Learning to spot these clients early on is an invaluable skill. Our business architects and salespeople have shared their insights to help compile this list of warning signs that indicate a potentially problematic client.

1. Financial Instability and Limited Resources

This is perhaps the most obvious and alarming sign. If a client constantly delays payments to their employees or suppliers, if their business is critically dependent on loans, or if there’s no clear budget for a development project—this is a direct path to you not getting paid. This also includes a clear lack of qualified staff on the client’s side who would need to work with your product or implement changes. You might offer a brilliant solution, but there will be no one on the client’s end to implement it.

2. Over-reliance on a Few Large Clients

If more than 50-70% of a client’s revenue comes from one or two customers, their business is in a zone of turbulence. The loss of such a client, which is common in our unstable times, can lead to the collapse of their entire business and, along with it, your joint project. This is a risk that is not always worth taking.

3. Unprofessional Behavior and Violation of Ethical Norms

This includes any disrespect for business agreements: constantly rescheduling meetings without notice, ignoring messages, or being unwilling to apologize for their mistakes. As psychologists note, respect for others’ time and keeping agreements are basic signs of reliability. If a business partner (and a client is your partner in a project) demonstrates the opposite, you should be very wary.

4. Unrealistic Expectations Regarding Timelines and Results

The client expects a “magic pill” or immediate results that are objectively impossible within the stated timeframe or with the current resources of their company. In psychology, this is sometimes called a form of “magical thinking”—a belief in instant transformations without accounting for the real effort and time required. This is guaranteed to lead to disappointment and conflict.

5. Lack of Personal Involvement and Shifting Responsibility

This is one of the most frustrating flags for me. If a client wants you to “do everything turnkey,” isn’t willing to spend their own time participating in the process, making key decisions, or providing necessary information, it’s a huge sign that they’re not ready for real work. A project’s success is always a joint effort. As the saying goes, success has many fathers, but failure always has one culprit—the one who didn’t take responsibility.

6. Unwillingness to Provide Complete and Accurate Information

If, during the diagnostic phase or throughout the work, the client avoids answering questions, provides incomplete or contradictory data, or distorts facts, it undermines the foundation of trust. Without a complete picture, you can’t properly assess the situation and offer effective solutions. This is either a sign of distrust towards you or an attempt to conceal the real state of affairs, which is even worse.

7. Devaluing Your Experience and Arrogance

When you hear comments like “I know better” or “Your prices are too high for this nonsense” right from the start, be prepared for problems. A client who devalues your expertise is not ready to learn or accept your recommendations. How can you help someone who doesn’t want to be helped?

8. Negative Experience with Previous Contractors and Blame-Shifting

It’s a classic when a client complains about all their past contractors: these were incompetent, the second group cheated them, the third let them down. Meanwhile, they see no role they played in those failures. If “they” were to blame for all past problems, then in your future problems, it will likely be you who is to blame. This is a clear example of external attribution of blame, where a person is unable or unwilling to take responsibility for their actions and decisions. This is in stark contrast to successful leaders like Elon Musk or Jack Ma, who publicly admit their mistakes and learn from them.

9. Lack of Clear Goals and Vague Expectations

A client wants “successful success” or asks you to “surprise them,” but can’t specifically articulate what they want to achieve. At Business Booster, we always help clients set a clear goal at the start because without it, it’s impossible to build the right path. But if even after our efforts the client continues to live in the clouds, it’s a sure sign that the work will be chaotic and the criteria for evaluating results will be vague.

10. Unwillingness to Pay an Advance or Unreasonable Financial Expectations

This point complements the first, focusing not so much on the overall financial situation but on the willingness to pay for your specific work. If a client constantly negotiates down to absurd amounts, demands results without an advance payment, or offers a barter instead of money for serious services, it can indicate either their disrespect for your work or simple inability to pay, which they are trying to hide.

These 10 points are not an absolute verdict, but each one is a serious reason for a deep check and, possibly, for refusing the collaboration. Ignoring these “red flags” in the hope of “reforming” the client means setting yourself and your team up for stress, wasted time, and most likely, financial losses.

Remember: knowing how to say “no” to the wrong client is a strategic decision that frees up your resources for those who truly value your work and are ready to move toward success with you.

Valentin Vasilevskiy Valentin Vasilevskiy is a co-founder and CEO of the Business Booster. It's an accelerator for small and medium-sized businesses. The accelerator's residents are companies from 64 countries, with programs in 4 languages (English, Chinese, Russian, Ukrainian). Since 2012, he has been an entrepreneur in the field of online education. His areas of expertise include digital marketing, remote teams management, growth hacking, and democratic management. His interests lie in AI, SaaS, business scaling, M&A, and VC.

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