Small Business Trends recently posted an article on the issues smalls businesses often face. When a small business lands a large client, it’s a major moment that calls for celebration. But later on, if that large client finds itself in financial troubles, problems may arise for all of its associates. As such, a small business that puts too much faith in a single large client may find themselves struggling to stay above water if that client folds or changes direction. To find out what can be done, Small Business Trends asked members of the Young Entrepreneur Council (YEC) the following:
“What can a smaller business do to protect itself when a larger client is at risk for bankruptcy?”
Appetizer Mobile’s CEO, Jordan Edelson, stated the following, “Diversify your client base. Putting all your eggs in one basket is never a smart move. Be prepared to ramp down resources allocated to that client to lower you financial exposure. Also be mindful of any work in the pipeline for them as you’ll want to consolidate efforts in the event you’re not paid. Finally, talk to your client and have a candid conversation about the steps they’re taking.”
To read the entire article and see what the other YEC members had to say on the topic, check out the following link: https://smallbiztrends.com/2019/09/bankrupt-client.html
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