Any small business owner wants to catch that elusive “big whale” client, a reputable and recognizable company with a national or international brand, like Wal-Mart or Disney. Catching one of these “whales” could mean big bucks and a steady revenue stream – at least for a period of time.
Unfortunately, too many small business owners put too much effort into landing a big contract – only to then face serious consequences later. A lost contract from a big client could spell financial disaster to a small business.
How can you, as a small business owner, land a big client but still keep your business in a solvent position should you lose the client?
Keep Smaller Clients
Your big client deals should not become a majority of your business. If you cater to a large client for 80% of your revenue, then what happens if the client should go away?
There are serious financial consequences for small business owners who rely on one or a few big clients. Instead, be sure you always keep a larger set of smaller and reliable clients in addition to the big brand name client.
Experts say that big clients should represent no more than 25% of your total gross revenue. That means if you ever lose your big client, you still have sustainable sources of income from the remainder of your client list.
Use Big Clients to Attract Other Big Clients
With one “big whale” on your list, you could use it for your own publicity. Big businesses like to know that other big businesses have worked with you before. Use your prestigious client to attract others just like it.
Negotiate Smartly
Big clients always have a boilerplate contract they use with their vendors. There is no reason you have to take the contract without any negotiations. Be sure you protect yourself as well. For instance, many big company contracts state that they can cancel the contract at any time. Ask for more time, such as a couple weeks or a month, so you have time to prepare for the loss.
Manage the Relationship Well
Big clients have big demands. That doesn’t mean you have to oblige to everything your big client wants, but do be flexible. Be up front with your limitations. Let the client know you want to satisfy their demands, but within reason. Be sure you both know the expectations of every order, quality or product, delivery date, and return policy. Keeping constant communication will help ensure that you and your big client will have a long relationship.
