Without customers, you don't have a business. Fair enough.

But I believe there are three types CLIENTS: ideal clients, clients who help pay the bills, and those you need to send packing. I know what you're thinking. It's hard to be picky as a startup or even an established business facing tough times. I agree, but with a little effort and careful planning, you can get more of those ideals and spend less time doing work that doesn't align with your business goals.

When I first started out in entrepreneurship, I made the classic mistake of taking almost every CUSTOMER that came out the door. There were some I turned away because the projects were uncomfortable, they had budgets that were like giving away work, or the people didn't seem trustworthy. I regret taking on projects like cool car commercials or ballet recitals.

Related: Digging for Gold: Identifying Your Ideal Customer

Don't get me wrong, those projects were important to the client; they just didn't fit the type of business I was trying to build. And here's the big takeaway. The type of work you do begins to define you. You end up attracting more of what you already have because that's what people see and what you're known for.

How do you start finding ideal clients when you're on a budget? Can you do this yourself or do you need help? How long does it take to weed out clients who don't fit your ideal profile?

Here are some practical tips to guide your efforts.

Be “Chosen”

The first step is to clarify who you do not want to serve. In my case, smaller one-time opportunities didn't have the potential to turn into a long term business. Look at your client list and see if there are organizations or individuals you just don't like working with.

Maybe it's the current job that doesn't fit in your portfolio. Is it a financial issue? Are customers unwilling to pay a reasonable fee for the product or service? It takes time and money to serve customers. If the reward isn't there, it's time to figure out how to make it worth your while or gracefully turn customers away.

Related: Don't let your biggest customer become your biggest nightmare

How to identify your ideal customer

There are many different approaches to defining your ideal customer. You can create a checklist that includes industry, number of employees, location, and other demographics or psychographics. I think an easier way is to choose three of them the best customers — those you serve at the deepest level. This puts a “face” on this process and helps you visualize the great relationship you want to build. Now ask yourself:

• What is their industry or business?
• What problem or need do I need to fill for this customer?
• What do they like about doing business with us? What do I like about working with them?
• Why is the relationship good? Is there faith? Good communication? Mutual respect?
• What are some of the tactics we use to “sell” them? What do they answer?

Now you have a picture of your ideal customer and what they expect. It's unrealistic for all of your customers to be ideal, but if you create a checklist based on what you've learned and a potential customer has many attributes, then they're a good target.

Related: 8 steps to turn your failed business into a success story

Can you create an ideal list yourself?

There are different opinions about this. Professional traders have tools that can help you get through this process quickly and efficiently. They have the templates and, frankly, the time to get the job done. They know what works and what doesn't. However, I think no one knows business like those on the front lines. Much of the upfront work can be done by a disciplined in-house team. When I have outsourced, it has been to help us refine our work and fill in the gaps where we need help, such as a social media strategy or SEO.

Another benefit of doing this work is that you can ask customers directly why they do business with you and what they want to see in the future. You learn a lot when you involve them in this research and they feel valued. And don't miss the opportunity to ask them who else could benefit from working with you. Referrals have been our best source of new, ideal customers. This is because large companies generally work with other large companies. Most of my ideal clients have come as referrals from people who have been clients for many years and consider us part of their team.

Related: The Complete Guide to Creating a Customer Referral Program

A constant effort

As you begin to work towards a portfolio of ideal clients, the reality is that you add new clients and do the work that excites you; you may need to weed out clients who no longer fit your profile. This is always difficult, especially if they have been with you for a long time – power through it. Start discussing with them and have a generous schedule for when you plan to finish serving them. Be direct but polite and help them transition to new suppliers.

Don't be surprised if this gets tense and downright ugly. When a client wants to fire you, that's one thing. When you want to fire them, it's a completely different scenario. Don't shirk the task. Remember what you're trying to do: get the best possible customer list. And even ideal clients can become less than perfect when circumstances change. Be alert. Go back and review your ideal client checklist regularly. Maybe your profile has changed or expanded. You will have to adapt. One thing is certain: finding your ideal customer is an ongoing effort throughout the life cycle of your business.