𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻

A lush forest can turn to ash. Sadly, I’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:

𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴 – Gain unexpected insights across the company.

𝗨𝗽𝘀𝗲𝗹𝗹𝘀 – Offer something fresh to existing clients.

𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 – Keep roles growing with new offerings.

However, there are potential costs to revenue diversification:

𝗖𝗼𝘀𝘁 𝗼𝗳 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 – Add expenses from new processes and teams.

𝗟𝗮𝗰𝗸 𝗼𝗳 𝗙𝗼𝗰𝘂𝘀 – Spread attention could lead to inefficiency.

𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 – Challenge your communications to existing clients.

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

𝗦𝗲𝘁 𝗟𝗶𝗺𝗶𝘁𝘀 – Focus on a highly specific segment until you demonstrate success.

𝗖𝗵𝗲𝗰𝗸 𝗗𝗮𝘁𝗮 – Check progress and adjust the campaign on a regular basis.

𝗟𝗼𝗼𝗸 𝗢𝘂𝘁𝘀𝗶𝗱𝗲 – 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