Becoming too reliant on one employee, one vendor, one customer, or one marketing avenue is a common pitfall of businesses. Consider the lesser risk of having 100 customers paying $1,000 each than one customer paying $100,000. The same rule applies to employees, vendors, and the number of ways to attract new customers. In business, diversity is key to combating stagnancy.
The following is a cautionary tale: A dentist built a substantial book of patients by using a particular mailing piece to attract new patients who had recently moved into the area. Over time, other local dentists caught on to this approach and copied the marketing piece. Literally overnight, the response from the dentist’s mailing campaign – upon which he had relied heavily for business – dropped dramatically. The mistake he had made was not developing other methods to obtain leads, thus making him susceptible to professional attrition and causing his dental practice to decline substantially.
In the long run, it’s better to know 20 different ways to bring a new customer into your business than to weigh your efforts too heavily in one way. It is actually easier and more realistic to devise 20 little ways to get one new customer at a time as compared to achieving an immediate, mass response with one marketing ad.
This can help you achieve financial stability in the long run.
Connect with your accountant about how your business can avoid the trap of one.