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You Lost the Client–Now What?

Depending on one or two big clients for a large percentage of your income can put the survival of your business at risk. If you have been complacent, relying on that big client to carry you, the loss of that client can be a shock. 

And don’t think that you can not lose that client. Even if you are doing a great job. Even if the client loves you. Even if anything. Things happen that are out of your control as well as your client’s control. The client may experience a financial setback or even go out of business. They may be sold, or they may change the direction of their business. Your contacts at the company could be replaced.

I saw this happen with one of my clients. He had a large contract that was keeping him fat and happy, and was focusing all of his efforts on providing service to that client and none on marketing to new clients. Despite my admonitions to diversify, he was certain that nothing would ever change, right up until the day everything changed. The client informed him that there was a new management team with ties to another vendor, and his services were no longer needed. Oops.

If you are too dependent on one client, start changing that today. Spend some time every week prospecting and marketing to new clients. Do not let one client be the source of most of your revenue.

But maybe that ship has already sailed. Perhaps you are reading this because you have already lost the big client who was paying your bills, and you do not know what to do now. That’s where I can help you. Here are some ways to bounce back from the loss of a major client:

Start marketing NOW. Come up with a plan for getting new clients and start implementing it. Now. Today. As soon as you finish reading this article. Get on the phone, make plans to attend local networking events, and do whatever you have to do to get work. But don’t think just in terms of getting the next job—put a marketing plan in place that will keep customers coming to you in the future.

Figure out how you got into this mess. Did you screw up? If you were overextended and missed a deadline, or failed to deliver what the client expected, determine how you will avoid making that mistake again. If your only mistake was relying too heavily on that one client, well, you are already taking steps to fix that, right? Don’t dwell on your mistakes, but use this as a learning experience.

Ask for referrals. If the break up was due to something that wasn’t your fault, your client may be very sorry to see you go. Ask if they can recommend you to others. Can they suggest anyone who could use your services? May you use their name when you contact these prospects? Call your other customers as well to ask for referrals.

Contact former customers. Many times a quick call to a past customer will result in immediate business. Don’t forget to contact people who used to work for your big (former) client and have now moved to other companies. They may be able to use you in their new positions.

Look to colleagues and “friendly competitors” for opportunities. Do you know of someone who has more work than they can handle? Perhaps you can be a sub-contractor to help them with a project. Someone who is a direct competitor may not want you working with them, but they might be willing to send business your way. They may get inquiries from potential clients who are not a good match for them, but would be perfect for you. Win-win-win!

Consider doing some pro-bono work. Free work doesn’t pay the bills, but it might put you into contact with people who will hire and pay you. Doing a little pro-bone work is a form of marketing as it builds your network and your portfolio.

Find other ways to make money. Teach a seminar or class. Get a part-time job where you can use your skills. Develop a new product or service you can sell, such as an information product that would be affordable for people who can not afford to hire you.

Once the crisis has passed, make sure you do not land in this situation again. Make sure you always have an assortment of clients of different sizes so that the loss of one of them does not put your business under. Create new sources of revenue (including passive income) so that you do not have to worry about your future. And never stop marketing, even when you have all the business you want.

* Analyze what went wrong. If it wasn’t your fault, ask the client for a recommendation and use it to help get new clients. If you could be to blame, find out what you could have done differently and offer to make amends. Do what you need to do to put it behind you, then concentrate on getting more work.

* Ramp up your marketing efforts. If you’ve completely abandoned marketing your business, you’ll need to work overtime to get back up to par. It’s tempting to spend every waking moment looking for clients, but it’s crucial to spend some time on marketing so that clients can come to you.

* Touch base with past clients. A simple phone call or postcard will serve to remind them that you’re still there if they need you. Who knows, one of them could be in desperate need of your services and simply have lost your number!

* Ask for referrals. Clients that are pleased with your work are often happy to recommend you to colleagues. You could even offer an incentive, such as a discount on future services for each new client that is referred.

* Find other ways to monetize your skills until you find new clients. Work on projects of your own, teach a class or take on a part-time job in your field. This will help minimize the financial blow and help you keep your skills sharp.

One of the most important lessons to take away from losing a big contract is avoid keeping all of your eggs in one basket. Having numerous small contracts will allow you to bring in a healthy income and lessen the damage if a contract is lost. When you do take on a large contract, remember to keep marketing your business and be ready to take action if you lose it unexpectedly.