2/17/2021 Tip: Avoid This Common Business Syndrome

Today’s Quote

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. “
~ Sun Tzu

 

Today’s Tip

If > 50% of your sales come from any one customer, you could have “Big Customer Syndrome” and be headed for trouble. While it’s clearly easier and more profitable to manage a smaller number of large customers, this makes you very vulnerable. Since if one of them leaves, your business will suffer greatly.

Also, having a few large customers often makes you tend to their whims so you can keep them. But this may not be in your business’ best interest. And oftentimes, you spend your energy servicing your big accounts instead of focusing on generating new customers and building additional revenue streams.

You should always be looking for new customers and to diversify your revenues so you can build a lasting, thriving business.

 

Today’s Resource

How to Build a $10 Million+ Company

What’s the difference between successful multi-millionaire entrepreneurs and the typical small business owner just struggling to get by?

Well, there are a LOT of differences, actually…

But I’ve summarized the main differences on this page:

How to Build a $10 Million+ Company <—- 

The really interesting part is that you don’t have to work yourself to death to grow a wildly successful, eight-figure business…

In fact, when you follow this formula, you can make much more by working less…

How to Build a $10 Million+ Company <—- 

 

Trivia 

Today’s Question: 79-year-old Stella Liebeck successfully sued which company after suffering burns from spilling hot coffee in her lap in 1992?

Previous Question: Which entrepreneur developed Youth Dew, the first bath oil to double as a perfume, in 1953?

Answer: Estee Lauder

Like the vast majority of successful entrepreneurs, Estee Lauder started small and focused, and with just one product.

Lauder’s original goal was simply to grow “a nice little business” (according to her son Leonard in a later interview).

But Lauder’s products hit a nerve in the market, and soon after launching, she landed her first department store account with Saks Fifth Avenue. The rest, as they say, is history as the Estee Lauder brand now accounts for approximately 45% of cosmetics sales in US department stores.

While I encourage you to think big, also start small. Get one great product or service into the market. Once you accomplish that, you can keep adding products/services and growing your revenues and profits.

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