Client dependence. It’s one of the top challenges small business owners face.
DYK that technically, if a single client makes up more than half of your income—you are more of an independent contractor than a business owner? 🤦
Let’s face it; you certainly didn’t expect to end up in this situation. After all, “Business 101,” tells us to choose a niche and stick with it, right? Instead, you find yourself with this client who makes overzealous demands you believe you must accommodate because you hired people and have to make payroll. And, honestly, you don’t know where to begin to diversify your client base.
Intellectually, you know the most diversified companies experience the fastest growth in revenue and profits.
To make matters worse, you lay in bed awake at night thinking about what happens if the client:
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- Chooses a different vendor for 2019 OR
- It cuts back their spending significantly.
Neither scenario is exactly pretty.
Here’s the thing—you CAN and {in my opinion} MUST regain control of your business. After all, it’s YOUR business! You became an entrepreneur for a reason, right? It’s time to shift the power back to you and your management team and remove those golden handcuffs.
Check out this list of actions you can immediately take to begin the process of diversifying your client base:
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- Reflect upon why your current client(s) have chosen to work with you. This exercise may give you insight into your USP and how to position future offerings.
- Hire an outside firm to facilitate a SWOT analysis with your management team. Gaining an outside perspective for this particular exercise is important. Plus, it’s a low-cost way to get a ton of good information about your company.
- Surround yourself with like-minded business owners. Stop acting as you live on an island! Invest in your professional success and join a Mastermind Group—it’s one of the quickest ways to achieve greater success levels. And, chances are others in your group have already figured out how to remove those golden handcuffs. Learn from your peers and allow them to push you and your business forward.
Remember, no one client should account for more than 30% of your revenue. Year-end planning is one of the best times to tackle diversification.
Whether you’re a business owner or financial professional, the tools you need to get started are within reach. Contact me, or schedule a call, and I’ll be happy to chat.
