Posts Tagged business perseverance

Concentrate on small to medium size companies rather than large clients

Or How Not to Take a Nose Dive with Your Big Client Wrapped Around Your Neck

Years ago, while doing some IT work for a large home building company in Michigan, I came with the idea of starting my own web design and marketing company. The owner of the construction company encouraged me to pursue the dream, knowing I would save him a bundle by selling my services directly to him.

The next 3 years I was happy as a clam, making over 100K per year from this client alone. Of course I wanted to grow my young and promising company but I kept on looking for the big fish only; just like the client I started with. In my case, I was, in fact chasing whales.

In 2007, the home construction industry took a dive and my biggest client was terminally flopping in a knee deep puddle of bankruptcy. I was so tightly connected to the client that their free fall almost took my little company into the dark deeps of despair and lost revenue.

Luckily, I had a couple of “smaller fish” from which, even today, I get steady revenue.

Conclusion:

Include in your portfolio a variety of small and medium size companies and don’t get side tracked by hunting only the whales. If your client base consists of only one or two whales you risk sinking with the ship faster than you can say “Moby-Dick”.

Of course if you happen to hook a large fish that doesn’t mean you have to throw it back. Just don’t get all ‘Ahab” on this practice. Cater to smaller ones too and you’ll be well fed.