How to Recover From Losing Clients & Other Setbacks

Don't Panic—Plan.

Listen, I completely understand. Losing a client you rely on for your livelihood can make you feel as if your whole life is crashing down.

But there is a way to recover from losing clients. What will help either fix the situation or provide the best solution comes down to having a plan or strategy in place to handle this potential outcome.

If you've just lost a client, don’t worry, this article will give you all the tips and strategies to manage it.

And if you haven't but want to be prepared, I'm sharing all my trade secrets for prepping and planning, based on the clients I've lost in the past and what I wish I had done differently, and now do differently.

Step 1: Stay Calm and Don’t Panic

Easier said than done, right? But think about it. How can you make any beneficial choices or decisions if you're in panic mode?

You can’t.

Anything you think of in panic mode would be based on reaction instead of thoughtful action, and that leads to choices that will not benefit you.

So first, just take a moment to breathe. I know it sounds cliché, but I stop whatever I’m doing, inhale, hold, and exhale. I do this for a few minutes until my heart rate lowers.

You need to be patient with yourself and reason with yourself.

Next, just remind yourself that this is a normal part of being self-employed. Everyone goes through this. It’s not like being an employee; when you offer services to clients, there’s always the possibility of losing those clients — even the long-term ones you thought were a sure thing.

This leads to the next really important note: don’t take it personally. Clients leave for all kinds of reasons, many of which have nothing to do with you.

If a client notifies you that they will not be continuing with your services, never respond out of emotion.

So now that we’ve covered that, let’s get into what to do and how to handle this situation.

Step 2: Have a Recovery Plan Ready

Your next step is going to involve creating a “Lost Client” Email Template. I use Google Docs for this. Your email needs to be:

• A polite, calm message that thanks them for their business.

• Politely ask for feedback (if they’re comfortable sharing).

• Offer a reduced service package (if it’s a financial issue).

Here’s an example:

Subject Line: Thank You for Your Business – A Quick Check-In

Hi [Client’s Name],

I want to thank you for trusting me with your [service provided]. I understand that things can change, and I completely respect your decision.

If it’s a matter of budget, I can offer a scaled-down version of my services at a reduced rate. If not, I completely understand, and I’d love to stay in touch in case you need anything in the future.

Please let me know if you’re open to sharing any feedback that could help me improve. I’m always here to help.

Wishing you all the best.

Thank you,[Your Name]

BTW: Feel free to use this template if you like, just personalize it to make it relevant to your client.

Your email should be brief and sincere, offering a solution and requesting feedback, but only if your client is comfortable with providing it.

Step 3: Maintain Relationships Even After Clients Leave

Just because your client is gone, doesn’t mean the connection is gone. Keep the door open by staying in touch with them periodically.

Good ways to reach out are:

• To send friendly holiday or thank you cards/messages (without being salesy).

• To congratulate them on any business wins you notice on social media.

• To occasionally, check in with a quick “hope all is well” message.

• To console them if you’ve heard any news regarding loss. Offer sincere apologies for their loss.

You want to reach out just enough to be considerate, without being annoying, overwhelming them, or coming across as pushy.

👉Clients who leave can become clients again, or send you referrals.

Step 4: Strengthen Your Safety Net

If you are a solopreneur, a freelancer, or self-employed, you need a safety net. It’s your non-negotiable.

I had to learn this the hard way. I was saving up for the down payment on a house and making financial plans with my accountant as if I were going to continuously receive the same amount of money every month from my clients, and then I lost a client.

Remember, things can be unpredictable with businesses, and you need to have a plan in place.

Here’s my buffer plan:

• Build an emergency fund (3-6 months of expenses).

• Maintain a list of potential clients or leads (cold pitch them if needed).

• Have services you can quickly promote.

• Increase your skills during the downtime.

• Network online and offline whenever possible.

• Even when your work list is full, keep sending weekly pitches and proposals to new potential clients. Even if you end up not taking the work, just keep up the habit of constantly having options.

The best time to look for clients is before you actually need them. This is why it's important to make time every week for building your brand.

👉 Want to know why I never work more than 30 hours a week for clients? Read my 30-Hour Freelance Rule.

Step 5: Treat Setbacks as an Opportunity to Improve

The last step is brutally honest self-awareness. Look at why the client left. Was it preventable?

• Was it budget? Consider offering more flexible packages.

• Was it a service quality issue? Look for ways to improve.

• Was it communication? Did they feel heard and understood, or were there misunderstandings?

• Was it consistency? Did you miss deadlines, or did the quality vary between projects?

• Was it lack of results? Did you deliver what they expected, or did your work fail to drive real outcomes?

• Was it a slow response time? Did they feel like they were always waiting for updates?

• Was it just a business change on their end? Don’t take it personally.

  
  

Another important thing is to stand out. In modern society, it's common to simply do what's asked of us, but why not break that mold and do things differently?

Ask yourself: What could I do differently that no one else is doing?

Perhaps it's sending a gift basket to your client to thank them for being a great client. Maybe it's offering a special service or discount they didn't request, at no extra cost.

Take the negative and turn it into a positive with an honest evaluation and self-growth.

My Final Thoughts: Recover From Losing Clients

If you take nothing else away from this article, remember this: setbacks don’t define you—how you react does

Losing clients is a natural aspect of self-employment. The question isn't "Will it happen?" but instead it’s "Will I be ready when it does?"

While you can't dictate every client's choices, you can always manage your response, your preparation, and your progress.

That’s just my two cents on the matter.

Until next time,

-Jess

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