GoKawiilThree simple steps for managing ‘concentration risk’. Every year, I look at how much money I earn from each client. Some years, my earnings are very skewed toward one client (or two). If something had happened to that working relationship, my year could have looked much different.
What to do if your biggest client is a risk to your solo business
Why This Matters
Managing concentration risk is crucial for solo entrepreneurs to ensure business stability and resilience. Diversifying client portfolios helps mitigate the impact of losing a major client, safeguarding income and long-term success. This approach is vital for maintaining financial health in an unpredictable market environment.
Key Takeaways
- Regularly assess client dependency levels.
- Develop strategies to diversify your client base.
- Implement contingency plans for client loss scenarios.
Get alerts for these topics