For a small or medium-sized business, gaining a large client that
consistently makes orders and pays on time would seem like an obvious
blessing. Being able to rely on a steady flow of work is reassuring, but
there are also major downsides if one or two clients make up the
majority of your revenue.
The most obvious problem is that if the one organisation you rely on
goes under, you may well be too. This doesn’t just apply to the private
sector, government cuts or reorganisation could mean being exposed to
risk when dealing with public bodies. Even if a client is doing well,
they might make the decision to switch providers when your contract is
up for renewal. Client dependency can seem like a potential disaster,
which has effects beyond your control. But there are steps you can take
to mitigate the risks.
When forming a business strategy to move away from a position of client
dependency, it pays to start with looking at exactly which clients you
are most dependent on, and to what degree. Having a percentage figure
for each one against your total monthly revenue is a good way to
evaluate this. Seriously consider the impact of losing your biggest
customer; would your company survive the loss?
Aside from client dependency, you may also be exposed to risk from
concentrating on one market sector. Industry-specific downturns are
common, and multiple clients could be affected.
When investing money, you wouldn’t put all your eggs in one basket. So
why take that attitude in regards to revenue? Looking at your core
business, what about your infrastructure and working practices could
appeal to a wide range of clients? From this basis, you can then adapt
workflows and business processes to meet new customer requirements.
Having a sales strategy and process that emphasises your past successes
while showcasing business flexibility is critical. Potential clients
will want to be assured that your services aren’t only relevant in one
industry and that you can adapt alongside them.
Maintaining good customer relations and having effective means of
communication are vital to retaining custom. Achieving these goals
doesn’t have to lead to higher overheads. Having a system open to
customers where they can log suggestions and complaints, and dealt with
by priority is a more cost-effective and efficient system then handling
A clear line of communication leads to more efficiently provided
services, fewer headaches and a clear picture of what a customer wants
in the future.
SwiftCase is a cloud-based business process management platform that
includes many features to help diversify your client base and mitigate
- Generate charts and graphs to evaluate to what degree you depend on a
- Configurable workflows to adapt to new clients and markets
- Client portal to maintain excellent customer relations and retain
Get in touch with us today, for a free, no-obligation demonstration.