Everybody loves getting a big client.
I know you feel like a ‘world beater’ when you get your first big client.
The ‘$’ signs glow from your eyes and you may begin planning your next overseas trip.
Unfortunately having a client that gives you 10% or more of your total business is a risk.
Why?
You begin to gear up to serve the needs of that client. You put on extra staff to handle the work. You increase your inventory to cope with demand.
You are at risk of losing all this, if you lose this client.
You may have borrowed money to cope with the expansion. How will you pay it back if some competitor comes in and undercuts you?
You will feel comfortable with the work orders flowing in and getting paid on time.
But . . .
You, your business and your family’s lifestyle is at the mercy of your one big client.
Have you heard of small businesses who go broke because a big client didn’t pay them?
Of course you have. When big customers have cash flow problems, they can stretch out your payment terms. (You do have payment terms on your invoices, don’t you?).
Your invoices will get paid from 14 days to 30 days then way out to 60 days. They will be holding large sums of your money and you haven’t got enough to pay wages.
It’s not a pretty picture, but click here and get the 'FREE ‘Debt Recovery Tool Kit’.
What if all you have in your business, is small clients? What’s wrong with that?
Here's what's wrong with that:
You will be on the rollercoaster of ‘consumer confidence’.
It’s driven by the media and economists.
When they say ‘confidence’ is ‘up’, people spend.
When things sound ‘shaky’, households don’t.
Don’t worry about getting lost. Click here to go back to ‘The six ‘B’s of consistent business' resource page.
The ‘Six ‘B’s’ of consistent business’ links are:
