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Whether or not the majority of your company’s revenue comes from a single customer is not in your control. Imagine you are a small company selling 500 widgets a
by dangero 6y ago
Whether or not the majority of your company’s revenue comes from a single customer is not in your control. Imagine you are a small company selling 500 widgets a year then Apple calls and orders 50 million widgets. You have two choices: don’t take the deal or make your company 100% reliant on Apple.
- stepbeek 6y ago100%. While diversifying is ideal many small businesses operate like this. That 50 million widget order might be the difference between scaling into a company that has budget to grow more consistently in the future or whether you continue in scarcity mode.
- crististm 6y agoI understand it's just an example, but going from 500 to 50 million is enough to break your business if you're not paying attention to cash flow and invest too soon in production means.
- monocasa 6y agoIMG is an IP only company, so scaling the number of their widgets doesn't really scale their business requirements except maybe some (not all) support metrics.