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Don’t Put All Your Eggs in One Basket

178554165If one client dominates your roster—that is a cause for concern. In fact, you should immediately start crafting a plan to bring in new clients.

Even if you think your major client and your business have an unshakable relationship, the reality is that in business, it’s easy come, easy go. And if that big client decides to stop working with you, you’ll be left with a huge hole in the middle of your revenues.

Clients leave for a variety of reasons—many beyond your control. Budget cuts could leave them without the finances to work with you; they could decide to bring what you do in-house or find a cheaper supplier; their business model could shift; or the decision-maker you work with could get promoted, transferred, laid off or find a better job.

So how do you avoid being dependent on one client? Try these two must-do tips:

  1. Keep track of your cash flow. Be aware of how much of your business’s income comes from each client, and know the “danger zone”—the point at which one customer accounts for a percentage of your business’s income that would be devastating if lost.
  2. Always be marketing. No matter how busy you are, regularly devote a certain percentage of your time to prospecting for new business. When you don’t have a lot of time to spare, social media is an efficient way to expand your networks. Referrals from existing customers are also a good shortcut that not enough small business owners take advantage of. Using references from your big client as a steppingstone to others in the industry can be an easy way to parlay your experience working with them into new clientele.

 

Photo Credit: Lezgi/iStock/Thinkstock

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