One of the great mistakes that many small businesses make is to fail to spread their risk over various revenue streams. Many times they will acquire one large account and depend upon it to make or break them. You don’t want to rely upon one source of income as the thing that will decide the success of your business.
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The pressure that this creates is that there is a inner warring over the service that you must offer your existing client, while having to spend time searching for new ones.
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This is not a attack upon the lifetime value of your customer in any way, shape or form. What I am saying is that taking that into account, you must develop a number of these types of customers across a variety of needs and wants of the company or customers you serve so that you can spread your vulnerability across as wide a spectrum as possible.
We have heard two sayings over the years that speak to these issues. One is that we aren’t to put all of our eggs in one basket, which confirms what I’ve been saying already. The other is that we put all of our eggs in one basket, then watch that basket closely. This one, in the current buisness climate, I don’t believe can be done any longer.
I’m not talking about needing 15 different areas, but we should have several streams that bring in revenue from interconnected products or services that compliment each other but come from different customers.
The next several posts, I’ll give you some case studies that illustrate this point.
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