Client: Overview, definition, and example
What is a client?
A client refers to an individual or business that engages the services or purchases the products of another business. In a business context, a client is someone who seeks out professional services, products, or expertise and enters into an agreement with the business to receive those services. Clients can be individuals or organizations, and the relationship often involves a transactional exchange where the client compensates the business for its goods or services.
For example, if your small business is a marketing agency, a client might be a company that hires your agency to handle their advertising campaigns.
Why is a client important?
Clients are important because they are the source of revenue and business growth. Without clients, a business cannot survive, as they provide the demand for a company’s products or services. Building strong relationships with clients is crucial for maintaining long-term success, repeat business, and positive word-of-mouth referrals. For SMBs, clients are the foundation of growth and sustainability, and delivering high-quality services or products helps ensure client satisfaction and loyalty.
For SMBs, identifying and understanding the needs of clients is essential for offering products or services that meet or exceed their expectations, which can help grow the business and maintain competitive advantages in the market.
Understanding a client through an example
Imagine your small business provides web development services. A local restaurant approaches your business because they need a new website to promote their menu and attract customers. In this case, the restaurant is your client, and your business will work with them to understand their needs, design the website, and deliver the final product in exchange for payment.
In another example, if your business provides accounting services, your clients may include individuals or other small businesses who need help with tax filings, financial planning, or bookkeeping.
An example of a client in action
Here’s how a client relationship might be referenced in a business agreement:
“The company agrees to provide professional consulting services to the client, including strategic business advice, market analysis, and operational recommendations. The client agrees to compensate the company according to the terms outlined in this agreement.”
Conclusion
A client is an individual or business that purchases products or services from another company. For SMBs, clients are the primary source of revenue and the key to business growth. Building strong relationships with clients through quality service, communication, and understanding their needs is critical for business success. Satisfied clients lead to repeat business and referrals, which are essential for long-term sustainability.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.