One of the worst mistake some business owners make is to be over-dependent on one thing… one key account, one product or product line, one marketing strategy, owner’s persona or personal charisma, one source of business….
Those who ignore the fact they need to build more pillars for their businesses can find themselves facing sudden slaughter.
As example, there was a very successful reseller of a product I know of who has built his entire business around that single product. When, through no fault of his, the principal faced a high profile lawsuit for negligence in another country, news travel overnight over the internet and his business was almost wiped out… in days…
Another example… in December 2009, Google made changes in policies to their Google Media… wiping out almost 30,000 advertisers who were entirely dependent on traffic generated by Google for their sales…
To put it bluntly: if you are over-dependent on any one source for acquiring customers… when disaster strikes, you will get no sympathy from me. You get no sympathy because you should be actively working on your business to prevent it.
A responsible entrepreneur will be actively engaged in building pillars:
1. Education – continuously read, seek new information, network, get a coach, etc… to go beyond the one he presently relies on… to those he and his industry is not familiar with…
2 Business Multipliers – have a couple of strategies working for the business… in each of the 3 Business Multipliers… Number of Customers, Frequency of Purchase, Average Purchase Value.
3. Tracking & Revising – continuously improve and anticipate changes in market conditions…
Have a profitable day!
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