Ok, so sorry if this turns into a bit of a rant, but this is something I see far too often. My job isn’t just about crunching numbers – I help my clients see beyond the spreadsheets. Business planning, strategy, overcoming challenges… all of that good stuff. And one of the biggest problems?
Business owners who are so caught up in the day-to-day that they don’t see the iceberg ahead.
Sounds dramatic, right? But trust me, I’ve seen businesses sink faster than the Titanic because they didn’t take a step back and look at what was really happening.
Let me tell you about two business owners – both in the same boat (excuse the pun), but with very different endings.
The business that hit the iceberg
So one of my clients – a husband and wife team – were hardworking, successful (on the surface), and making decent sales. They even had a business plan – kind of. By “business plan,” I mean the husband had a vague idea in his head that no one else was really involved in.
But the biggest issue for them? One customer made up nearly all of their sales.
This was a HUGE red flag for us, seeing this over-reliance on one customer, and even more so because they had gotten comfortable with this risk. Too comfortable. So much so, that they had let their marketing become outdated, their outreach was non-existent and therefore not delivering, and despite my very polite (and slightly desperate) warnings, they didn’t think they needed to do anything differently.
Then, the inevitable happened.
That one big customer found a new supplier and, suddenly, the business was in freefall. Without a diversified client base or fresh leads coming in, they couldn’t replace the lost revenue quickly enough. And, as a result, the ship went down, and sadly, so did their business.
This was incredibly sad to witness as their accountant who warned them of the iceberg ahead, but this happens more than business owners realise. If you’re too busy focusing on the day-to-day to step back and look at the horizon or if you’re too comfortable doing things the way you’ve always done them, chances are, you won’t see that impending iceberg that can cause irreparable damage.
The business that looked up and adjusted course
Now, contrast that with another business owner in the exact same position – he was around 60% dependent on one customer – except this one listened.
He realised the risk of being over-reliant on one customer and actually wanted help. So, together, we built a solid business plan – not just an idea in his head, but an actual, written strategy that focused on:
- Where the business was now
- Where he wanted to be
- What challenges could get in the way (icebergs, if you will)
- What actions needed to happen and who needed to take action to overcome those scenarios.
With a plan in place, he then got to work. Over time, he brought in multiple customers of a similar size, massively reducing the business’s dependency on just one. But beyond just reducing this risk, this move did so much more – he broadened his customer base, revamped his sales and marketing – and this completely transformed the company, leading to significant growth.
Fast forward a few years? He sold up and walked away with a nice cash sum in his pocket. A happy ending, all starting with a plan, some perspective, and taking action.
Are you stuck in the day-to-day without perspective?
If this sounds familiar, you’re not alone. It’s easy to get caught up in the daily grind, but when you don’t take a step back and look at the bigger picture, you risk sailing straight into disaster.
And before any of my current clients start sweating – don’t worry, these case studies are ex-clients. One because they went bust, the other because they exited successfully and retired. Two very different outcomes.
The question is, which outcome do you want?
Let’s review your business plan
If you’re nodding along thinking, “Yep, this is me,” then it’s time for a reality check. Let’s look at your business plans, your strategy, and make sure you’re heading towards success – not an iceberg.
Drop us an email at [email protected] and let’s chat about how we can help.
Because let’s be honest – you wouldn’t drive with your eyes shut, so why run your business that way?
