Business Education

What to Do When You Lose Your Biggest Client

Losing any client is a blow to any business owner. But, it’s particularly troubling when it’s the largest paying customer your company has a working relationship with (or had at one time). While it’s disturbing for any size client to stop doing business, it’s an absolute crisis when it’s the single largest one. Or is it? The answer really depends on how you handle the situation. So, read on to learn more about how to deal with losing your largest client.

Seize the Opportunity

Entrepreneurs are usually able to identify opportunity when it presents itself. But, in cases where there’s a tentative failure or bad fortune, it can be very difficult to see it and act upon the moment. Sure, it’s a setback and this makes it quite hard to get past the shock. However, the sooner you spring into action, the better. (Though don’t mistake this for making rash, uninformed decisions.)

Whether you’re a Fortune 500 company or a small mom-and-pop business, losing a massive client is always shocking, uneasy and frustrating. Unfortunately, it’s something that almost every entrepreneur experiences at some point in time. —Forbes.com

Instead, take a step back and give yourself time to form a generalized overview, one that’s not out of panic and fear. After all, it’s far better to take an honest assessment and determine precisely where you stand in order to determine exactly what actions are necessary in the short-term. This way, you’ll make informed decisions that are based on reality and not trepidation, anxiety, and alarm.

3 Ways to Deal with Losing Your Biggest Client

Losing a big-time client is a real reason for concern. However, it’s also not an excuse to give up and close your doors for good. There are more than a few things you can do to prevent significant damage and/or start building new streams of revenue. Here are three of the most effective strategies you can use after losing your biggest client:

Expand existing business relationships. The easiest way to make up for the difference is to leverage your existing business relationships. After all, current customers are the easiest ones to deal with and the most obvious place to double down. Since you have an existing relationship, you can offer more products and/or services to them and that will get you through in the short term.
Take the opportunity to expand offerings. This is also a prime time for expanding what you offer to the public. This is a great opportunity to expand your business by focusing on your most popular selling items, whatever these are now and in the near future.
Prevent the same situation from happening again. Of course, you probably don’t want to go through the same ugliness again at any time in the future. So, make sure to develop strategies that prevent this type of loss from happening again and you’ll gain a better sense of security.

What other suggestions do you have that might be of help? Please share your thoughts and experiences by commenting so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Want to Grow Your One-Man Show into Big Business? Then Follow George Washington’s Example

May 22, 2025 No Comments

In 1775, the Continentals were planning to exit royal crown rule, but needed a leader.

Get Your Body Butter and Toothbrush Rentals Here! What could Possibly Go Wrong?

April 10, 2019 No Comments

Strangely, no one is lining up outside the body butter and toothbrush rental stand. How odd? Who would have guessed such an idea wouldn’t take off? After all, you have a huge selection. So, there are plenty of choices. Yet, no one is interested. Something’s amiss here and you can’t quite put your finger on it. Even Good Business Ideas are Not Guaranteed Winning Strategies Okay, so the headline says it all. It’s a totally ridiculous business model. There’s not a person near or far interested in renting body butter or a toothbrush. Yet, people do come up with some strange concepts to sell and are surprised when they don’t pan out. You’ve created something unheard of. You’re passionate about it. You believe in it. You’ve also spent an insane amount of time figuring the whole business out down to the tiniest detail. By now, you can talk about it for hours — and to top it off, it actually is a great idea. But for some reason, you can’t sell it. So, what’s the problem? —Forbes.com On the flip side, there’s no guarantee a really good idea will widely succeed. Even the best concepts run into problems. In other words, solid products and services aren’t immune from the realities of the marketplace. Put another way, there is no straight path from unknown to sensation. How to Test a Business Idea So, how do you know if a business idea is worth pursuing in the first place? How can you determine if it’s something which has a real chance of making it in the free market? Try these suggestions to establish a baseline: Look for successful competition. Everyone wants to believe their idea is “new.” But, that’s usually not the case. In-part or whole, it’s likely been done before. So, look for examples and see how they fared. Test different versions several times. There’s no such thing as perfect. Meaning, your business idea isn’t without some sort of flaw. Even if you’re really confident in what you’ll offer, it could perform better or worse, depending on a few tweaks. Offer a variety and see which works. Explore the industry to gain an understanding. It’s certainly true good ideas are boxed out of the marketplace because they aren’t allowed. Perhaps it’s too heavily regulated or there are just too many obstacles to make it feasible. Think about how it can scale and adapt over time. If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle. Think about creating a Minimum Viable Product (MVP). Ok, what the heck is an MVP. A minimum viable product (MVP) is a concept from Lean Startup that stresses the impact of learning in new product development. Eric Ries, defined an MVP as that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort. This validated learning comes in the form of whether your customers will actually purchase your product. A key premise behind the idea of MVP is that you produce an actual product (which may be no more than a landing page, or a service with an appearance of automation, but which is fully manual behind the scenes) that you can offer to customers and observe their actual behavior with the product or service. Seeing what people actually do with respect to a product is much more reliable than asking people what they would do. If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle. How do you test a business idea to ensure it’s a viable one? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Biggest Inflation Price-Adjustment Mistakes to Avoid

November 26, 2021 No Comments

Inflation in the United States is at its highest level in 31 years, according to the Wall Street Journal. Currently, it’s measuring around 6%, and complicating matters more is supply chain issues, along with shortages in key materials, as well as labor availability. Due to these factors, businesses are faced with the decision to raise prices. Although practically any business owner would resist, this just isn’t a sound strategy. When a company’s costs rise, it must pass on at least a portion to consumers. If businesses don’t raise prices, they obviously reduce their margins, thereby reducing their revenues. So, do small businesses deal with inflation? How Small Businesses can Deal with Inflation Fortunately, there are a few key strategies you can employ to help your company through an inflationary cycle. One step you can take is to offer bulk discounts on the products you sell, incentivizing your customers to purchase more in exchange for paying less overall. Another thing that you can do is to use the same strategy for wholesale vendors, asking them for a slightly higher discount in exchange for purchasing more inventory, or materials and supplies. The PPI — producer price index– measures the prices of goods immediately postproduction and serves as a critical indicator of the pressure facing companies. Companies that weathered previous storms the best took decisive steps to counter rising inflation by pushing through price increases consistent with PPI — but that alone was not enough. —Havard Business Review Small businesses can also help to offset inflationary pressures by scheduling jobs further into the future. Since materials are more scarce at the moment, this might not be a viable strategy. Of course, this does come with a good deal of risk, because you don’t have a crystal ball into what will unfold over the next several months. Yet another strategy for coping with inflation is to move to alternative materials and supplies that cost a little less. But, be aware this might also mean having to settle for a lesser quality product. 3 Biggest Inflation Price-Adjustment Mistakes to Avoid If these strategies aren’t enough or don’t appeal to you, there are definitely things you should avoid doing. Because any one of these will likely be extremely costly in one way or another. Here are the three most dangerous mistakes businesses really need to avoid in their inflation adjustment pricing: Apologizing. Sure, it’s human nature to empathize. But, you’re not the driving force in rising prices, nor are you in control of the elements that are causing inflation to rise. Although it’s tempting to apologize for having to charge more, it puts you in a position of weakness and can easily lead to you reducing prices at a time where it’s just not feasible. Overcharging. Obviously, price gouging is illegal. But, charging more (particularly above the new, higher market rate) in order to cover your rising costs and increase your margin at the same time is not advisable. Doing this will only result in driving customers to look for less expensive alternatives in your competitors and leave you with a guilty conscience. Undercharging. This is perhaps the biggest temptation small business owners face during inflationary periods. They empathize with their customers, being affected in their own personal lives too. So, they decide to keep their prices the same or only raise them as little as possible, thereby cutting into their margins. While customers will certainly appreciate the break, it could very well become a self-inflicted wound that leads to ruin. What other suggestions do you have for dealing with inflation price adjustments? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your strategies. Interested in learning more about business? Then just visit Waters Business Consulting Group.