Not All Customers Are Good for Business — Here’s Why

_{[Read time: 2.5 minutes]}

I’m still torn about the word “niche.”

Not because I think you should serve everyone (you shouldn’t). 

But because even within a niche, not all customers fit.

You still have to guard your business against customers who aren’t good for it — despite their good money.

Over time, I’ve realized that the issue wasn’t just about “niche fit.” It was about how customers impacted my business.

So, instead of just thinking about niche, I think about three levels of customers.

Level 1: Ideal Customer Profile (ICP)

These are the customers who align perfectly with my business model.

They trust my expertise, integrate seamlessly into my systems/style, and are philosophically aligned.

When I find an ICP match, everything flows.

I can feel it, too.

I don’t think that should surprise you.

Level 2: Ancillary Customer Profile (ACP)

ACPs are close, but not perfect.

They might require extra work — customization, communication, or effort — but their monetary, experiential, or relationship value can often justify it.

Some are in my niche (and kinda fit), while others aren’t in my niche (but still fit).

Here’s the key: I get to decide whether they’re worth it.

• If they add value without breaking core systems, great.

• But if they create too much complexity, it’s okay to pass (or eventually sunset).

Despite adding a few wrinkles, ACPs should ultimately add to my business, not complicate things more.

Level 3: “Other” Customers

These are the ones I must avoid, no matter how much they’re willing to pay.

Why? Because they break my business.

They pull me away from progress or into areas that drain time and energy.

Ideally, I wouldn’t attract them initially, but they show up.

And it’s on me to draw the line — even if they are in my niche (or if I can solve the problem).

Because here’s the truth: I can’t grow a business that keeps breaking itself.

Honestly…Why This Matters

When I focus on ICPs, choose ACPs wisely, and avoid “Other” customers, I’m not just growing — but building an efficient, scalable, and sustainable business.

Why?

Because my operations stay efficient, energy stays intact, and growth feels like momentum — not a stop-and-go.

Ok, But What If You’re Starving?

Let me acknowledge the obvious:

If you’re starving for work, working with those “other” customers is perfectly fine.

Your business still needs to eat.

I’ve been there. I’ve said yes to “other” customers. Worse, I’ve kept saying yes to more work (even when I shouldn’t have).

Yes, it made me money.

But it also slowed my progress toward where I wanted to go.

The question isn’t just whether they fit your niche — it’s whether they help you build or make things break.

So remember…not all customers are good for business.

Thank you for reading.

See you next week.

— Peter