Don't Let Your Biggest Victory Cause Your Biggest Failure

Why you might want to say no to the biggest client you've ever had.

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Here’s a situation which may arise in your consulting career.

You sign a new client and the project goes well. The client asks you to take on a much bigger project - perhaps a project which will take up the majority of your time.

The obvious answer is to say yes. It’s more work with a major client who presumably enjoys working with you.

But the smarter answer is probably to say no.

That’s because it would create a huge revenue concentration risk.

What Is Revenue Concentration Risk?

As you can guess, revenue concentration risk is when you rely on a single client/project (or, for larger organisations, a handful of clients) for your income.

It’s always better to have a number of smaller clients (and earn a little less) than earning more with a single big client. In the short term, you will earn less. But i…