Imagine this scenario: you have recently started your own business and already have some clients. Even though they still do not generate your dream income, they are loyal to you and the relationship with them is running smoothly. Growth is not very fast, but it is constant and the future perspectives are very good. Suddenly, a large company knocks at your door, and wants to place an order that is larger than all your current customers normally order… together. This is an opportunity to take a long leap towards your mid and long-term goals.
You are not 100% sure that the order can be delivered in time, but think that it is possible.

What do you do? Accept immediately? Ask for some time to evaluate the order? Negotiate a smaller quantity? Reject the order?

I don’t pretend to be arrogant and tell you what to do. These situations are complex and only the business leader can make this kind of decision. Nevertheless, I can tell you that the first and last options are normally the worst.

When you make this kind of decision, the following risks must be evaluated:

1. If the order is accepted and not delivered properly, you will burn your business with this large client (and with other potential clients that may be influenced by this one).
2. If you use all of your resources to deliver this order, your smaller (but loyal) clients, who where the basis of your growth, will be left aside.
3. If you expand your resources (investment) to fulfill this client’s needs without any side effects on your current clients, this company will represent an unreasonably large percentage of your income.

This last issue deserves some extra thoughts. Many people do not see problems in have a client in this situation (representing most of your income). But what will happen if for some reason this client is lost? Your company would have a lot of excess capacity which would lead to a complicated process of shrinkage and financial loss. Don’t forget another important danger: the moment this customer finds out that your business depends on him, he will use this fact as a negotiation tool to pressure for price reductions and less favorable sales conditions.

Asking for some time to evaluate the order doesn’t show your weaknesses. It’s a demonstration of seriousness and honesty. If the client doesn’t see it this way, it’s a sign that he will not be understanding with any delays or problems that you have in the future.

Let me make it clear again: I’m not saying that this kind of client must be turned back. I mean that the business leader must evaluate the resources that will have to be added and the risks that may hit the company if this client is lost in the future. Whatever the decision is, other clients cannot be affected, since this will only increase your dependency.

Having equilibrium in your client base is an important factor for sustainable growth.