Like any dependency, first you have to acknowledge the dependence on one big client.
That one big client may account for a massive proportion of your profit.
What does it look like, that one big client?
On the plus side:
But also, perhaps, some negatives:
Good or bad, probably bits of both, that one big client is a risk.
What if you lose them?
What if they lose you?
And it’s also an opportunity.
That one big client may be many things. In fact the only thing that one big client must not be is “that one big client”.
One of the first records released on the Virgin label was Tubular Bells. It was outstandingly successful and made huge amounts of money for Virgin.
It was a springboard for the growth of not just the record label but the entire Virgin empire.
Indeed, the significance was acknowledged by Virgin Atlantic in naming one of their aircraft Tubular Belle in 1994.
It seems to me that this is one of the best ways to utilise that one big client – use it as a foundation to grow your business and other businesses.
The best way to decrease your dependence on that one big client is to build up a portfolio of other big clients!
If that one big client ticks lots of positive boxes (profit, cashflow, good to work with) then use it as a springboard to grow.
But what if that one big client is a problem?
In this case you still need to be building up other clients to reduce the dependency and, when the time is right, try to renegotiate a better deal with that one big client.
However, you have to be prepared to say goodbye. Ideally at a time of your choosing.
After all, they can say goodbye to you, so wouldn’t you prefer to do it on your terms?
Many businesses are launched or achieve massive growth on the back of that one big client. But many get painted into a corner as well.
There’s nothing wrong with having that one big client – but make sure you make the best of the opportunity it presents.
Michael – @bluedotmichael
Related links:
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“Just wanted to take this opportunity Michael to thank you for your support of our finance manager and myself in progressing this work. It really has moved forward more quickly than we had expected and the Finance and Risk committee on Tuesday evening were impressed with the progress.”
“Michael and the Blue Dot team have been an essential part of our journey from startup through to being an established company, and we look forward to continuing working together long into the future. They have always been on hand to offer support and sound advice whenever it is needed.”
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“I’m no expert but it has been transformative the help and advice I get from Michael and his team.
Michael was fantastic. He quizzed me on how my business worked financially and was super patient with me. Explaining everything in a non-accountancy manner. He then showed me how to utilise all the less obvious tools in the program, which he continues to do, so that I can see immediately what monies held belonged to my company and what is held for clients. I now do my own VAT returns and payroll because of his help and continued support.”
“I really enjoy working with Blue Dot Consulting — they’ve helped me take control of our financial situation in a practical, no-nonsense way.
They take a common-sense approach and, most importantly, they get things done. For example, we now have weekly planning and forecasting calls, along with monthly cash flow reviews using simple, easy-to-understand spreadsheets.
Their support has made a huge difference in how we manage and plan for the future.”
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It felt like more than just a service, it was a partnership.”
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“Michael’s straightforward, practical and tailor-made approach was perfect for me and our business.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
