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๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐˜€๐—ถ๐—ณ๐—ถ๐—ฐ๐—ฎ๐˜๐—ถ๐—ผ๐—ป

A lush forest can turn to ash. Sadly, Iโ€™ve seen devastation too many times when one or a handful of startup clients yield the majority of profits.


Expanding clients lowers overall risk and sprouts other advantages:


๐—Ÿ๐—ฒ๐—ฎ๐—ฟ๐—ป๐—ถ๐—ป๐—ด โ€“ Gain unexpected insights across the company.


๐—จ๐—ฝ๐˜€๐—ฒ๐—น๐—น๐˜€ โ€“ Offer something fresh to existing clients.


๐—˜๐—บ๐—ฝ๐—น๐—ผ๐˜†๐—ฒ๐—ฒ ๐——๐—ฒ๐˜ƒ๐—ฒ๐—น๐—ผ๐—ฝ๐—บ๐—ฒ๐—ป๐˜ โ€“ Keep roles growing with new offerings.


However, there are potential costs to revenue diversification:


๐—–๐—ผ๐˜€๐˜ ๐—ผ๐—ณ ๐—ฅ๐—ฒ๐˜€๐—ผ๐˜‚๐—ฟ๐—ฐ๐—ฒ๐˜€ โ€“ Add expenses from new processes and teams.


๐—Ÿ๐—ฎ๐—ฐ๐—ธ ๐—ผ๐—ณ ๐—™๐—ผ๐—ฐ๐˜‚๐˜€ โ€“ Spread attention could lead to inefficiency.


๐—–๐—ผ๐—บ๐—ฝ๐—น๐—ฒ๐˜…๐—ถ๐˜๐˜† โ€“ Challenge your communications to existing clients.


How can you get the best ROI with an expansion initiative?


๐—ฆ๐—ฒ๐˜ ๐—Ÿ๐—ถ๐—บ๐—ถ๐˜๐˜€ โ€“ Focus on a highly specific segment until you demonstrate success.


๐—–๐—ต๐—ฒ๐—ฐ๐—ธ ๐——๐—ฎ๐˜๐—ฎ โ€“ Check progress and adjust the campaign on a regular basis.


๐—Ÿ๐—ผ๐—ผ๐—ธ ๐—ข๐˜‚๐˜๐˜€๐—ถ๐—ฑ๐—ฒ โ€“ Rely on external resources for creation and implementation then scale once you get traction.


No customer should represent more than 15% of revenues, ideally much lower. Revenue diversity is complicated, but the risk is fatal.


Photo by Ylvers who can be found here: https://bit.ly/3bJHxE8



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