Too many small businesses are leaving themselves exposed by relying on a single client for the majority of their work, a new survey suggests.
The research, carried out by Close Invoice Finance, estimates that 350,000 small and medium sized businesses depend on one customer for more than 75% of their business (based on a sample of 500 business owners).
While one big fish can do wonders for your business’s income, it does tend to leave you scuppered if for some reason that client goes elsewhere or folds (both all too common at the moment at the moment as businesses look to cut costs or go bust).
Always aim to spread your bets. It might be harder work to pitch to lots of different clients and maintain numerous different relationships, but it’ll be worth it when something goes wrong with one of them.
Consider whether business insurance might be worth the expense too - the survey also found two in five businesses weren't covered.