The CEO of JAKT Product Design & Development Studio says that it is better for your business to be packed with clients than being comfortable with and reliant on just one.
Anthony Tumbiolo, founder and CEO of JAKT, wrote an article on Entrepreneur about how to manage a business. The number one rule you must remember is: do not rely on just one client; get as many as you can.
Tumbiolo writes that a business must have many clients. It is far better to be full to the brim with clients than having only one or two.
Why? This is because your clients ensure a source of revenue. Imagine having one big client only for that customer to cut your services. Cue the mad scramble to get new clients, said Tumbiolo.
On the other hand, let's say that your business has five clients and two of which decide that they no longer need your services. You still have three more customers to fall back on.
Even then, you cannot be reliant and complacent. Don't say, "Pfft. I still have three more customers. The business will be fine."
You must always be in a state of looking. Look for clients all the time, whether they be big or small firms. Tumbiolo writes that you should be saying no to work, instead of not having any work to say no to.
So, ensure that your business always has a full sales pipeline in order to shoulder any unforeseen contract terminations from your clients. There is no guarantee that it will save your business from falling to the ground, writes Tumbiolo, but it can prevent or at least soften the blow.
In addition, it does not hurt to be prepared as well. Always be in a state of looking, always have a full sales pipeline, and never rely on just one customer.
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