Let's say you bill $2,000 a year for a small client and have to eat a $500 project – that's a big deal On the other hand, if you're billing a larger client $10,000 a year, then that $500 project isn't really a problem. Your profit margin should be the basis of your decision.
Focus most of your time on developing larger, sweet spot clients, and as you grow, you will have no choice but to start letting some of the smaller projects go in order to meet the needs of your larger clients.
Learn more about working with micro businesses and making the transfer from small clients to major clients in the article, Computer Consulting: Should You Work With Micro Businesses? (link above).
Posted by Computer Consulting 101 Professional Kit