Thanks to the 33 folks who reported back about the number of clients and gorilla clients questions. Here’s what you told me:Number of Clients You Worked With Last YearGorilla Client Data (“Gorilla client” defined as a client that makes up more than 35% of your year’s revenue)RE: the table above, I’m aware that (35% * 3) = 105%, but I included that number anyway because it’s close enough for government work.Now for the link: https://www.davidcbaker.com/managing-client-concentrationIf you’re interested in learning more about the points at which a gorilla client represents a serious risk to your business, I think it’ll be well worth your time to opt in for and read the aforelinked paper from David Baker.The one thing I’d like to add to what David is describing in that paper is the fact that most of you have more degrees of flexibility than a business owner who has payroll to meet every month.Your lower-revenue, lower-overhead businesses might be more prone to concentrating too much revenue in too few clients, but that poses less risk to you as well because your fixed expenses are lower. A series of unfortunate events with your gorilla client(s) can still put you out of business as it almost did me in the Fall of 2011, but you can also survive these events without having to fire employees if you’re sufficiently aggressive or flexible.Thanks again to all who shared information on their client distribution. I really enjoy helping you get to know your fellow list members with this kind of informal research.-P
Insight for Indie Consultants
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