Is your best customer putting your business at risk?
What’s not to love about your favourite customer?
Whether it's the fact they’re wonderful people to work with, they provide you with much of your business, they pay on time or you simply look forward to your interactions together; whatever the reason, each time you do business with them, it’s a good day :).
And why not? I love it when business is fun and enjoyable.
But could working with your favourite customer put your business at risk…?
Here’s something to consider: You could be at risk if your favourite customer represents a large part of your revenue.
While it’s wonderful to work with great clients and customers, it’s also wise to keep a handle on your business risk and ‘putting your eggs in one basket’ as they say, will keep your business risk high.
So, how do you know if your biggest client has elevated you to high-risk status?
If any one client or customer represents more than 15% of your revenue, the stability of your company may be at risk. The rule of thumb here is that no one customer represents more than that.
As much as we love the idea of doing all our business with our favourite people it’s just not wise to do so for the long term if they account for a large portion of our revenue.
Consider diversifying your customer base by:
1) Finding other people/businesses just like your favourite client/customer
2) Selling the same service/product to them
Where I see companies creating more risk is by selling many different customized services or products to many different people.
Creating consistency with a qualify offering to many customers that would value that offer sets you up for success AND sustainable growth!
Finding more of your favourite clients is the way to go, so that you have diversified revenue sources AND you love the people you do business with. And, my guess is, they will love doing business with you.
It’s exactly these types of things that I look at with my clients when we work together to create sustainable growth.
If this is something you want to look at for your company, then let’s chat. You’ll walk away knowing the next best step to take in your business, whether we formally work together or not.
NOW is YOUR time,
Ariana
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Canadian Business Coach, Business Coach in Canada