Don’t Put All Your Eggs in One BasketPosted: June 7, 2016
As a business owner, you feel fortunate when landing a large client. This client can become your bread and butter, but this could also mean that your success is tied to theirs, and if they struggle, so will your business. Should another supplier offer your client better pricing or packages, their loyalty to your business can be compromised. Your largest client may have overdue payments or expect lower prices if they know your dependency on them. However, a greater concern is if you are spending all of your time and resources focused on your main source of income, you are likely to neglect or not seek additional clients.
There certainly are benefits to having larger clients, including the consistent revenue stream and workload, aligning your brand with their reputation, and possible referrals and references when trying to land new clients.
In my 30 years of business experience, I’ve found it critical to diversify your client portfolio with large and smaller clients. In doing so, you reduce the risk of the impact to your business if a large client leaves.
Despite your best efforts, losing a key client can be devastating for some businesses, especially when more than 30% of your business is reliant on them.
Here are a few suggestions I’d recommend to help you safeguard your business from the loss of a large client:
1. Stay connected with all your clients
As the business owner, making a call to your client’s C-level person is critical in gauging the health of their business. Ensure you speak with that person on an ongoing basis and integrate your value. If they do stop working with you, hopefully you’ve laid the groundwork for working with them in other capacities (e.g. as a consultant on an as-needed basis) or keeping the door open for their possible return or referrals to other businesses.
2. Foster Business Development
Create an action plan for networking and building an ongoing flow of potential clients. Leverage your existing clients for new business. Participate at networking events and seek referrals from clients.
3. Advance your marketing efforts
Create a lead generation marketing plan to support your business development efforts. This might include call out campaigns, email blasts, downloads, boosting social networking posts, and pay per click.
4. Join a Peer Advisory Board
It’s been proven that by sharing with other like-minded individuals, it helps to increase your bottom line. Members of Peer Advisory Boards are asked to contribute industry information or business ideas and meet on a regular basis, sharing best practices, networking, and putting forward objective recommendations. By hearing encouragement through a different perspective from other business professionals, you can help grow your business.
Through the continual development of a diversified client base, losing a large client will not devastate your business, but stand as a learning experience and opportunity for growth.