Diversify client base for financial security
If you don’t want to get “burned” and lose much time and money, you may want to consider one of the most important axioms of business: Keep all of your clients at less than 10% of your total revenue. Thus, if any one client “forgets” to pay you, the “sting” won’t be so hard to handle. I have seen too many folks focus on a very few, larger clients and be severly damaged when the fees from that client fail to continue … irrespective of the cause, whether not liking the last bill(s), changing attorneys or their own economic hardships.
It’s great to work on one or a few larger projects. That means that you’re putting all/more of your eggs in one basket. In addition to the greater risk you take, you’re also not building a business. You’re looking more like an employee.
This is fine if that’s what you want. Longer term security, and benefits, however, come with creating our own business.Tags: Cash Flow - Finances
Categorized in: Cash Flow - Finances