When you launch a new business, you don’t often have the luxury of being choosey when it comes to customers and contracts. You take what comes your way and often stick with even the most exasperating clients. But as your company grows, you may find it’s time to reassess your client list and fire the ones who are taking up too much time and not giving you much return on your investment.

It’s not easy to have the courage to toss a paying client, especially in this economy, but when it comes to the health of your company, you have to have to do what’s best. Chances are a couple of clients are on your short list of ones to dump, but how exactly should you determine which ones to keep and which ones to let go?

First, look at the time you’re spending with the client. If your client is constantly calling, asking for meetings and complaining about everything from the quality of work to the latest invoice, it may be time to cut your losses. It’s likely you have a client who isn’t going to be happy no matter what you do and this client is using up a lot of the time you could be spending on more profitable clients or finding new business.

Second, assess whether your company has outgrown the client. Has your business grown and expanded beyond what the client needs? If you’ve added services and raised your prices or rates, but your client still only needs those initial services, it’s quite possible the client needs a smaller company and you need to look for bigger clients.

Finally, review your bottom line. Does the client pay on time? Are they open to hearing about your new products or services? Or, is the client constantly complaining about expenses and always two months behind on payments? If a client is cutting into your bottom line or causing you to be late with your own payments, it’s best to focus on clients with more financial stability.

It’s your turn: share your advice for how best to determine when it’s time to fire a customer or client.