It’s easy to let yourself rely on big, lucrative clients. But what happens if they ditch you?
David Mitroff, Ph.D. was interviewed and featured in the March 2017 issue in Inc. Magazine in an article that discusses how to recover from the loss of an important client:
“Losing a major client is a precarious moment for any small company. It’s a particular risk if your business sells to other businesses, because it’s more likely that a few clients could account for a significant portion of your revenue.
Ideally, you should never rely on any one or two customers for a majority of your sales, but it happens all the time. According to David Mitroff, the chief executive officer of Piedmont Avenue Consulting, industries such as construction and large-scale catering are particularly prone to an overreliance on a few big customers.
If that sounds familiar, realize that there’s only so much you can do to protect those relationships. Another business’s needs might change, it might experience money woes, or it might close its doors entirely. Or, adds Mitroff, “there are times when an existing client no longer feels the need to work together. This is organic and a part of the process of any expanding business.”
Still, it can easily take three to six months to bring in new business, and longer for big clients. While you may be currently operating at capacity, don’t completely neglect your sales pipeline.”