By Eddie Mugulusi
There’s a sneaky trap in small business that most people walk straight into with a smile on their face.
It looks like a win.
Feels like a breakthrough.
Smells like a cash cow.
But one day, boom — it turns around and bites you. Hard.
Let me explain.
The Seduction of the Big Fish
Years ago, we finally landed Setta High Schools.
All four campuses.
If you know Setta, you know.
It’s massive — over 10,000 students.
They buy in bulk. They pay big.
And they centralize their purchases, which made it even easier to serve all four campuses with one deal.
It felt like we’d made it.
We stocked them up.
Hundreds of cartons moved.
Money came in like clockwork.
We were winning.
At least on the surface.
The Drama Beneath the Surface
But the canteen managers weren’t happy.
Turns out, some of them were already tied to our competitors — you know, those shady backdoor deals and loyalty-by-bribery setups.
So from day one, it was friction.
Pushback.
Undermining.
Sabotage, subtle and otherwise.
Still, our product was better. Cleaner, more presentable, better branding. That kept us afloat.
But behind the scenes?
They were cooking up a plan to kick us out.
And eventually…
They did.
No drama. No warning. Just thank you, but we’re moving on.
The Crash After the High
Here’s what we didn’t realize:
We’d gotten used to the money.
Depended on it, actually.
That one client had become a major revenue pillar.
And when it crumbled, our sales took a nosedive.
No matter how strong the rest of the business was, the weight of that one client leaving shook everything.
And that, right there, is the silent risk: Client Concentration.
The Concept: “Don’t Get Held Hostage”
Let’s give it a name so it sticks:
“Don’t Get Held Hostage.”
Because that’s exactly what it is.
When one client starts accounting for 30%, 40%, 50% of your revenue… you’re not just doing business anymore.
You’re being held hostage.
By their decisions.
By their delays.
By their moods.
By the politics in their procurement office.
And if they pull the plug?
You’re cooked. Or at least bruised and limping.
How to Break Free
Here’s what I do now.
And what I suggest for every small business owner who wants to build a sustainable operation — not just a lucky streak:
1. Build in Tiers
Not all accounts are equal. Accept that.
Break them down like this:
- Tier 1: Your top performers. The regular, consistent, high-volume clients.
- Tier 2: Growing accounts. Not quite there yet, but have potential.
- Tier 3: Newbies. Small volume, but possibly strategic.
If you only have one or two Tier 1s — you’re too exposed.
If you have none — you’re not scaling, you’re just surviving.
2. Diversify Like Your Life Depends On It
Because it kind of does.
Make it your goal to spread your sales across multiple strong accounts, not just one giant whale.
Yes, whales bring in money.
But they also create blind spots.
Aim for a wide base. That’s how you create stability.
Not from one jackpot, but from a portfolio of solid bets.
3. Treat Outliers Like Outliers
Sometimes you land an outlier.
A client who buys more than everyone else combined.
That’s okay.
But never let your operation hinge on them.
Don’t change your pricing, your hiring, your logistics — based on one golden goose.
Because if it flies away… you’re done.
Final Thought: Growth That Can’t Be Stolen
Real growth isn’t just big.
It’s resilient.
It doesn’t collapse when one client disappears.
It doesn’t panic when politics hit.
So if you’re in that season where one account is doing the heavy lifting, take a pause.
And ask: What would happen if I lost them tomorrow?
If the answer is panic, debt, or confusion — you’re already too deep in.
Time to spread out.
Balance the load.
And build a business that isn’t at the mercy of anyone.
That’s how you grow smart.
That’s how you stay standing.
Unlock your true potential 