During a tight economy, it’s sometimes difficult for you to turn down a questionable business engagement — even if you know the customer is going to be a nightmare, and the margins aren’t going to be so great.

But MSP University CIO Erick Simpson offers some solid advice on how to  transform your business, so that you can focus on fewer, higher-paying customers. Take a look.

According to Simpson, you need to “squeeze” your customer pyramid as part of a long-term strategy. I think Erick is onto something. Check out his complete blog entry, highlighting how he transformed his own customer base in recent years. His lowest-paying, least desirable customers are no longer part of his business.

Erick didn’t achieve this transformation overnight. It was part of a long-term plan. Now, during the economic slowdown, Erick isn’t scrambling to “say yes” to customers he doesn’t want. Instead, he has a base of customers who truly trust him.