The Dangers of Relying on One Customer

Often for a small business to take the next stepsoon as you can. This can be really true if the
it can seem necessary to land that one big client.business you do with them varies. Say you have
Some sort of whopper client. If that does happena service oriented business. Your big client may
for you great. But have you ever consideredaccount for over 25% of your business during
what would happen to your business if you werethe course of a year. But what if there are slow
to lose that client? Just as they helped yourmonths. What exactly are your employees going
company make that great leap forward theyto be doing to earn their pay?
could also destroy your business if they were toOne big client can throw a lot of different things
leave you. That's why it is so important to keep aoff for you. You need balance in your business.
diverse clientele.That's why the 10% rule exists. Yes you want
The old axiom "never put all of your eggs in onelarge customers but they still should not represent
basket" can definately apply in this situation. It'smore than 10% of your overall sales. But neither
preferable in fact that no one customerdo your smaller customers need to reach that
represents more than 10% of your annual sales.figure either. You can have ten different clients
Because if something were to happen to themeach representing 1%. That side does not really
your business is going to be the one suffering. Itmatter. All that matters is how big are the big
could even be the result of something that hasplayers. The better your sales spread is the more
nothing to do with you. Maybe they wentprotection your business has for the unforeseen.
bankrupt! But it might be they switched vendors.So when working to build your business please
The reason doesn't really matter it's thekeep in mind the 10% rule. Doing so can save you
consequences that do.from some unfortunate consequences that you
So if you do land the big fish then you need tojust might be on the receiving end of but had
take advantage of it rather quickly. Preferably bynothing to do with. It would be unfortunate if your
landing more clients. Yes you could becomebusiness were to suffer or even fail because of
overloaded with business. But you need to reducethe financial ramifications that can be caused by
your reliance on that client as much as possible asthe loss of a large customer.