Hi, I’m Sheryl Hunter, the Entrepreneur’s Attorney. I’m here with the Entrepreneur’s legal brief about balancing your business relationships.
Your business relationships are like your investments, you don’t want to put all your eggs in one basket.
If your business is dependent on one or key suppliers or manufacturers, you’re at their mercy.
Cultivating a network of suppliers, on the other hand, means you will never feel beholden to any one.
Spread your business around. A diverse portfolio limits your risk.
You’re too reliant on any one employee, you set yourself up for trouble when that employee decides to leave. You need to nurture a pool of people you want to hire, grow your team evenly, and delegate evenly.
Finally, you are too dependent on any one customer, your business will be highly unstable and less valuable to a future buyer because of the risk of losing that big fish.
I try and advise my clients to try and get to the point where no customer is more than 15% of the overall revenue.
Balance in these three areas of buyers, employees, and customers protects your business and makes your business more desirable to an investor or future buyer when they’re making their decision.
So contact us today for a business check up to determine the health and balance of your business.
This is Sheryl Hunter, the Entrepreneur’s Attorney with your Entrepreneur’s legal brief.