Do you have a big client who always buys from you? What if they abandon you? What will happen to your business?
Is it going to die?
The answer is:
Here’s an example:
Do you know a company called Twilio? It is a text messaging service where you can notify all your customers through text.
They have a whole system where you can APIN, and it makes text communication simple.
Their biggest client is UBER and that made up a large portion of their revenue. Uber made an announcement one day that they’re going to be building it in-house and not use third-party providers. What do you think happened to Twilio’s stock?
It tanked. Drastically, not like five, 10, 20%. It tanked hard. That’s okay; you can’t always control your business’ customers. You can build up that relationship, but this situation is inevitable especially in the handmade business world where people go to quality and affordability.
If there’s another business who can offer that, they will not hesitate to abandon you!
So what should you do?
1. Get Their Competitors
If you guys have any issues where one client is making the majority of your revenue, congratulations first off for getting that amazing, large contract. You should also think about it that way. If you got that one customer, go to their competitors and try to get them as well.
In addition to getting another customer on board, diversify. Go after other clients who are smaller, that’s okay, they’ll pay less. Your margins might not be as good. That’s okay. Go after them. That way if you do lose a client that makes a majority of your revenue, at least you have some income coming in.
2. Spend Wisely
Don’t waste your money. Save it, so that way when you have a rainy day, you still have the funds where you can keep going. Then if you have to cut employees, try to help them find another job. Go above and beyond, because if you don’t care for the people, what’s the point of being in business? Without them, without your team, you’re not going to have a business.
3. Think Positive And Move On
As I mentioned on a positive note, look at it this way, you did well. You closed a big customer, good for you; you can get more of them. We’ve all been in situations where we lose that one big customer who pays the majority of our money.
I had one customer paying me a hefty amount per month before. That was the majority of my revenue, but it was my largest profitable client.
The majority of my profit would come from that one client. Eventually, I lost it, and I did recuperate. It took me a while, but it’s probably going to happen to you where you’re going to lose that big customer. Don’t worry about it, just be prepared for it. You were able to get that client, and I’m sure you’ll be able to get another client and if you get lucky, that client would be bigger!
It’s not a question of if it will happen, it’s a question of when it will happen. So best of luck to you, I hope you don’t lose them, probably will, but I hope you do succeed and keep pushing forward because you can come on top.