The Break Up: what to do when your biggest customer leaves

Bart Burggraaf

A few years ago I got an email saying ‘we need to talk’. When it’s a girlfriend you know what this means, but to my knowledge we just had a business relationship. This was our biggest customer by far, and the news couldn’t be good. When I heard the words I knew were coming, my […]

what to do when your biggest customer leaves

A few years ago I got an email saying ‘we need to talk’. When it’s a girlfriend you know what this means, but to my knowledge we just had a business relationship. This was our biggest customer by far, and the news couldn’t be good. When I heard the words I knew were coming, my heart still skipped a few beats. What does this mean for the company? Will I need to let go of some staff? How will we survive?

Reassuringly, we realized a long time ago that you can be the best company in the world, have personal relationships all over the place and deliver incredible services and still lose business for one menial reason or another. It’s a reality of doing business, and I think most business owners realize their vulnerability when one client brings the lion share of revenue. To prepare for this reality is quite another thing though.

The problem is that when a customer comes on board that is so large they instantly become your biggest, most of your resources are devoted to that customer. You lose focus of the big picture and often fail to prepare for when the times are not that great. So really, ‘what to do when your biggest customer leaves’ should be ‘what to do BEFORE your biggest customer leaves’. We all know the deal; diversify, put resources back into new business, make sure your cost is as variable as possible. But practice is something else.

So when that day of reckoning invariably comes, it is time to suck it up and cut fixed cost. The means letting some people go, perhaps moving into a smaller office and lower executive compensation. The same goes for your marketing, cut out all the brand stuff and focus on tactical, variable cost that gets you direct business, and perhaps crank it up a notch.

So then when your cost are as variable as they can be, you have two choices to grow your business back. One option is to try and ‘buy’ new business. Lower your pricing, hire that sales person with the portfolio or even acquire another company. The other option is to hustle. There is a reason why you got so far in the first place. Pull together the team, explain the issues you are facing and get everyone’s ideas on how to get in new business and save cost. You’ll be surprised what comes out of the woodwork.

Read this next

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

<