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

Read the full list of 13 Tips from the Business Journal Trust here.