The BizFilings blog covering business tips and trends.
Turning the Loss of Your Biggest Client into an Opportunity
Published on Sep 9, 2011
Read our article, 'Turning the Loss of Your Biggest Client into an Opportunity' at 'Time to Start Up,' the small business blog by BizFilings.
There's a great article by Issie Lapowsky over at Inc.com, that details "how one Inc. 5,000 CEO coped with losing his largest customer, and why it helped his company grow."
I found this article particularly interesting because when I had my own small business, I had two customers that accounted for more than 80% of my revenue. When I lost them it was devastating.
Here's an overview of Issie's interview with Cliff Schertz of Tiempo Development — the man who made the decision to fire his biggest client. In doing so he propelled his business to greatness ...
"Losing a big client can spell disaster for a start-up. For Tiempo Development, it spelled opportunity. During the heat of the financial crisis in 2008, Tiempo's largest client, which accounted for 60 percent of the company's revenue, couldn't manage to pay its bills. So, Cliff Schertz, who founded the Tempe, Arizona-based software development company in 2005, took a calculated risk and "fired" his own customer.
Schertz refers to that time as a 'near-death experience,' but in the end, it's what propelled his company's 975 percent growth in the last three years, landing Tiempo at No. 323 on this year's Inc. 500 list."
Click here to read the entire article.