Acknowledge that periods of scarcity are inevitable. The best defense is to prepare by continuously front-loading your pipeline, even when you've just landed a big customer. This prevents over-dependence on a single deal and ensures you're not starting from zero when a dry spell hits.

Related Insights

Most founders worry about a single client representing too much revenue, but the same "concentration risk" applies to lead sources. If one channel (e.g., Instagram) generates over 40% of your leads, your business is vulnerable. Diversification makes you safer and more valuable to buyers.

Maintaining a full pipeline through consistent prospecting gives salespeople options. This allows them to detach from the outcome of any single deal, reducing desperation and pressure. The ability to walk away from a deal because you have other opportunities creates immense confidence that buyers can sense.

A sales pipeline should resemble a town with multiple economic drivers (e.g., agriculture, manufacturing). Relying solely on a few large "whale" accounts is like a town depending only on oil. A healthy 70-30 mix of smaller and larger clients creates resilience against market shifts or the loss of a single major account.

Service-based businesses inherently have a limited capacity for new clients. Instead of viewing this as a weakness, small businesses should leverage it as a powerful and authentic form of scarcity in their marketing. Stating you only have capacity for a few more clients creates genuine urgency without fabricated deadlines.

In businesses with production constraints, the sales process must shift from broad outreach to strategic allocation. By creating profiles for each customer, a salesperson can offer scarce products to their best accounts first, maximizing revenue and strengthening key relationships when supply is limited.

Instead of maximizing the volume of prospects at the top of the funnel, strategically narrow your focus to fewer, high-potential accounts. This 'martini glass' approach prioritizes depth and engagement over sheer productivity, leading to better quality opportunities.

It's tempting for founders to halt sales and marketing to focus on onboarding new customers. This is a mistake. Pipeline momentum is fragile and disappears faster than you'd expect, requiring a complete rebuild from scratch. Maintain at least a minimal 'factory' cadence at all times.

Businesses should operate in a constant state of "offense"—innovating, seeking new clients, and exploring new services. Being forced into offense because of a defensive situation (like losing a major client) is far less effective and more stressful than proactive growth.

Average reps find security in a pipeline packed with low-quality leads (a "sewer pipe"). Top performers prioritize quality over quantity, resulting in a leaner but more potent pipeline (a "water tap"). They are comfortable with fewer opportunities because they know what's in there is highly qualified and likely to close.

To mitigate client concentration risk, the quantity of relationships you maintain within a single customer account must be directly proportional to the revenue it generates. Relying on one or two contacts is a critical failure point, especially during leadership changes, transforming generic advice into a specific, quantifiable strategy for account security.