How a Diverse Customer Base Protects Your Business

All business owners want to establish relationships with the right clients. A right client is one who is easy to work with, has the right budget, and needs the products and services you provide. But also, it is about having a mix of clients, in what we call a diverse customer base. Tow trucks in Kettering have a diverse customer base and this diversity helps in reducing business risks and transforming the revenue streams if a business.

Developing a more diverse customer base will help businesses mitigate risks, and will also provide additional financial security and stability. Businesses also get the opportunity to work on different types of projects and with different people. Every business and industry is different. There are different factors including geographic and demographic that impact the nature and type of clients you can have.

However, here are the best practices to put in place when looking for the ideal client mix.

Finding the right client

In your initial client search, you should be guided by the needs of your business and the problems you want to solve. Have a clear plan on the problems and needs you want to address. You need to find clients that need what you offer, based on the nature of your business. Collect as much demographic information as possible on the core users of your products and services. Identify who is buying from you, especially if it is different from the person using your services.

A diverse client mix will have a lot of advantage for your business including;

Risk mitigation

Over-reliance on one client can be a big disaster in waiting. If you are working in only one industry or sector and something goes amiss in that industry, it could be the start of your downfall. An economic downturn in the industry might leave your clients with a very limited budget. The sure way to go about it is to have a diverse portfolio of clients and project types that can help you to remain protected.

Cash flow security

Having large anchor clients will form a good ground for your cash flow to keep your business going. Smaller clients and one-off ones may come to give you a few projects, but anchor clients will be the driving force for your business. Reliable clients are crucial to the growth of your business and the management of your time. Having employees and staff who are underutilized can be quite stressful for them and could post losses on your side.

Fosters creativity and innovation

Doing the same work over and over may leave your team upbeat and frustrated. Having smaller clients in different industries will present very good opportunities for you to try something new. When you have a reliable source of revenue, you will be more motivated to take risks on different things by trying new projects and technologies that can foster your creativity and innovation. In everything you do in business, growth will only come by registering more clients and expanding your delivery capacity.

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