13 leaders on avoiding, or recovering from, dependency on a big client
A wise business owner doesn’t put all their eggs in one basket. Still, in service businesses — especially new companies — it’s sometimes the case that there are clients that account for a hefty portion of revenue. The loss of such a client can require significant retrenchment.
To ensure a long-term, healthy future, it’s important for service business owners and leaders to both avoid overreliance on a single source of income and know what to do to recover if a large account is lost. Our Business Journals Leadership Trust shares tips to help companies avoid — or, if necessary, recover from — the loss of a big client they’ve been heavily dependent on. Here are insights from Mark D’Agostino.
1. Be wary of the 25% threshold.
My perspective is that when a client’s contribution to revenue exceeds the threshold of 25%, it usually necessitates the need to make significantly different decisions to meet their needs. At times, such decisions may not align with the company’s long-term interests, and they can affect the level of service you can provide to your other clients.
Mark D’Agostino, ConnectedHR