The Perils of Client Concentration and What to do About it

Consultant, do you have 1-2 large clients that keep your business going? What happens if one of them leaves? 🤔

This unfortunately is a very common problem consultants face. They land a large client or two, hire a team and get so caught up in delivery that they don’t pay attention to building their sales pipeline.

An active sales pipeline means you are having conversations with qualified buyers on a regular basis and adding new clients to your business in accordance with your goals.

It’s hard to land new conversations with qualified prospects overnight. It takes planning and experimentation to get it right.

But if you’re just winging it and hope you’ll land a client somehow, you expose yourself to enormous costs, such as:

🛑 Existential: You’ve managed to generate cash flow and profit by maintaining 1-2 top clients, but if one of them leaves all of a sudden, will your business even survive?

🛑 Financial: Not having engagements that overlap means you’ll be losing income between engagements. Can you afford tens of thousands or hundreds of thousands of $$ in lost revenue before you land your next client?

🛑 Future opportunities: Without a sales engine pumping out cash flow for your business month after month, what opportunities could your business be missing out on? Selling your business someday? Or buying other businesses, perhaps? Buying personal assets with the cash your business generated?

🛑 Personal: Stressing about how you’re going to land your next client could make you spend less time with your spouse and kids. Or pay less attention to your health. What’s the point of starting a business if its going to affect your family time and health.

🔥 ❓ Now, the question is: are you committed to setting aside time every week to build a sales pipeline?

Because once you do, you not only mitigate risks but also create options for your business. You’ll have a range of new prospects to choose from and can do business on your terms.

☘ Invest in building a sales pipeline no matter how busy you are. Your future self will thank you for it.

Ready to add $100k-$500k revenue to your consulting business in 12 months or less without burning out? Schedule a call and let me show you how.

Image credit: Reina Cottier Art