7 Business Red Flags

Red Flag? Yellow Flag? Or Green Light? Which One Is It!? 

Red or yellow?

Stop or proceed with caution?

What color is the flag?

That’s where we’re headed in this blog article and Content with Character episode. We’ll walk through 7 real business red flags, 7 maybe flags, and plenty of green ones along the way! You’ll also learn the top reasons we ignore the flags and ways to politely and professionally use NO as a strategy when you spot things that scream, “Run!” 

Over the past decade, I’ve worked with 1,000’s of individuals and have written (to date) for 115 different industries. I should have a pretty good grasp on when to run towards and when to run away from clients. 

But, I can often be found ignoring red flags in business or giving people the benefit of the doubt. Plus, I need to put a roof over my head. One thing I’ve learned time and time again is that almost no amount of money is worth a red flag client. Someone isn’t letting you work your process, express your creativity, and do your best. 

No amount of money is worth it to be disrespected, devalued, and unappreciated. 

Enter the business red flags.

Sometimes they up nice and early, and either times, they look yellow, or even orange, and we have to look a little closer to determine whether or not it’s a right fit. 

Why People Ignore Red Flags: 
  1. Fear of Losing Business

Especially in the early stages, it feels like a win no matter who the client is. Cut yourself a whole lot of slack if you’re there. There’s also the very real thing of needing money and not being able to afford losing business. When you are established, you don’t want to hurt your reputation or miss an opportunity down the road, so you might overlook red flags. The fear of turning down a client can make us rationalize away warning signs, thinking, “It’s better to have this work than none at all.” You may not want to burn bridges and worry that saying no will do so or damage a relationship. 

  1. Imposter Syndrome or Lack of Confidence 

If you’re feeling uncertain or insecure about your value or your skills, you might question your instincts when something feels off. “Am I overreacting? Maybe I’m being too picky…” Maybe I’m not good enough to get the people I really WANT. This can lead you to ignore red flags or dismiss concerns, thinking that you’re not qualified to be choosy.

  1. Wanting to Prove Yourself

Chances are high that if no one before you could rescue them, you won’t be able to either. You don’t need to prove anything by overcoming this challenging client. Conversely, it can lead to overcommitting and burning yourself out with clients who aren’t a great fit.

  1. Misreading the Situation

We can’t always actually see the red flags for what they are. We can convince ourselves that a client is just “asking a lot of questions” or “trying to be involved” when, in reality, they’re exhibiting signs of micromanagement or unrealistic expectations. And sometimes it’s about not having enough experience to spot those red flags early.

  1. Lack of Boundaries

If you haven’t set clear boundaries with your clients, whether personal or professional, it can be easy to overlook things that make you uncomfortable because you haven’t yet established what’s acceptable. 

  1. Not Knowing How to Say No

Saying no can be uncomfortable. Especially if you’re still learning to navigate business relationships and say it professionally. Some service providers might struggle to assert themselves or feel like they need to say yes to everything to keep their reputation intact. They fear rejection or disappointing others, so they ignore their gut and just say yes when they should’ve said NO. 

7 Business Red Flags 

#1) Inconsistent or Unclear Communication 

  • Vagueness in directions, instructions, or expectations
  • Ghosting the project
  • Failing to communicate during a project (or when starting) 

#2) Unwillingness to Pay Your Rates

#3) Scope Creep

Scope creep when clients want work beyond what you agreed upon without paying for it or realizing that it costs more. 

#4) They Blame Everyone Else for Their Problems OR put it all in your hands to fix it!

#5) A Disrespect for Your Boundaries

#6) A Disrespect of Your Process or Your Expertise 

#7) Unrealistic Expectations

7 Potential Red Flags (Yellowish-Orange) 

  1. Asking Lots of Questions
    At first glance, it can seem like a red flag when a client is very detailed or asks a lot of questions, but in reality, it may just be them trying to make a good decision. It’s up to YOU to help them do so (and know when it’s too much). 
  2. Asking for Changes Mid-Project
    While this may seem like scope creep, in some cases, a client asking for changes isn’t a red flag. It’s a natural part of the creative process, especially if you’re working on something that needs tweaking or evolving. It’s important to set boundaries around this and charge where needed!  
  3. Negotiating Rates
    Depending on the nature of your work, clients who ask about negotiating rates aren’t automatically a red flag. They could just be testing the waters, or they might have budget constraints. This can be an opportunity to offer package deals or explain the value of your services. You can always say no, and you can always offer alternative solutions. Just proceed with caution.

4. Slow Payment Initially
If a client is a little slow to pay the first invoice, it might be more about them getting accustomed to working with you or navigating their own cash flow issues. This might not be a red flag, yet. Keep an eye on payment patterns over time.

5. Perfectionism or Micromanagement

I’ve had some amazing clients who are self-acclaimed perfectionists, and while it might sound like that’s not trusting, it might just be that they really care and are invested in the project. The key here is to communicate openly and manage expectations early on so that both of you feel comfortable with the process. 

6. Uncertainty About What They Want
When a client isn’t sure exactly what they need, it might feel frustrating. Sometimes it’s a red flag because they have no clarity, and sometimes YOU get to help them refine their ideas, work through their goals, and bring their ideas to life WITH clarity. As a service provider, you can offer value here by strategizing with them and guiding them through the process of discovery. Proceed with caution, but it’s not necessarily a no for me! 

7. Preferring to Handle Some Details On Their Own
If a client wants to take on some aspects of the project themselves (like copywriting, for instance), it might feel like they’re undermining your expertise. However, it could just be them wanting to be hands-on in a way that doesn’t interfere with the overall vision. A conversation about responsibilities can help clear this up. I really like working with someone who just wants me to step in with editing or feedback after they write or wants a strategy session for a done-with-you approach.

Want MORE? Plus how to say “No” gracefully when you
have to turn someone down? Listen here!

Red, yellow, or maybe even green? What color is the flag? That’s where we’re headed in this episode: 

  • 6 Common reasons we ignore the red flags
  • 7 Red flags reminding you to run the other way 
  • 7 Yellow(ish?) flags reminding you to proceed with caution 
  • How to get better at spotting red flags and upholding your word to yourself 
  • 5 Ways to say no professionally (and a bonus silly one 🤪) 
  • And more!