I consider owning a web development company very similar to a traditional advertising agency.
As a developer, you work with a number of clients and these clients stay within your roster as a complex group of moving parts.
Businesses change, expand, fold and disappear. So as these changes take place it makes logical sense that your roster will change rapidly particularly if you have dozens of clients, much like Local Galaxy.
Believe it or not, even if we have been teaming up with a client for years, and while we'd like to keep all on the roster, we understand completely when a change needs to be made. Sometimes a business could benefit from a "fresh set of eyes."
So when that time comes, we appreciate it very much when the client, calls us, explains the situation and we agree to a proper handoff.
Remember, a web designer usually has access to critical and sensitive information about your company; domain registration, bank information, email access, intranet, extranet, etc.
It is wise to make sure that this transition is done with respect and cooperation so that all can move on with confidence.
WE understand. We really do. Things change, budgets change, life changes. Just call us and let us know and we'll help make the handoff as smooth as possible.
Also see How to Fire an Employee on FitSmallBusiness.com.