If your business lost its biggest client today, how long would you survive without cutting costs or laying off staff?
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That’s a critical question that every business owner should consider. The ability to survive without your biggest client depends on factors like:
- Revenue Dependence – If your biggest client contributes a large percentage of your revenue, losing them could be a major blow.
- Cash Reserves – Do you have enough savings to cover operational costs for a few months?
- Diversification – Having multiple income streams or a broad customer base reduces reliance on a single client.
- Fixed vs. Variable Costs – Fixed costs like rent and salaries must be paid regardless, while variable costs can be adjusted.
A healthy business should ideally have at least 3–6 months of operational runway without drastic cost-cutting measures. If survival depends too much on one client, it’s time to diversify.
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That’s a critical question that every business owner should consider. The ability to survive without your biggest client depends on factors like:
Revenue Dependence – If your biggest client contributes a large percentage of your revenue, losing them could be a major blow.
Cash Reserves – Do you have enough savings to cover operational costs for a few months?
Diversification – Having multiple income streams or a broad customer base reduces reliance on a single client.
Fixed vs. Variable Costs – Fixed costs like rent and salaries must be paid regardless, while variable costs can be adjusted.
A healthy business should ideally have at least 3–6 months of operational runway without drastic cost-cutting measures. If survival depends too much on one client, it’s time to diversify.