Small-business owners and freelancers are often one-person operations or have limited staff. They may rely on a single big client for most of their revenue. Unfortunately, even long-term relationships can change on a dime, and you might lose your biggest customer.

In forums across the internet, entrepreneurs lament a sudden loss of their income. Their longtime client hires a new manager and they cut ties, someone goes out of business, a customer dies or they outsource to another country or even move operations in-house. 

Things may seem bleak, but there are ways to recover and thrive after losing your biggest customer.

Steps to Recover After Losing Your Top Client

You already know you shouldn’t have put so many eggs in one basket. Perhaps your client was as much as 80% of your income. According to the Small Business Administration, there are approximately 33.3 million small businesses in the United States. With new startups opening all the time, it’s a given that you will lose clients to other companies.

Now that you’ve experienced the worst-case scenario, take a few minutes to grieve and ponder what you should have done. Then, pull on your boots, as small-business owners do, and get to work. It’s time to recover from this hit. 

1. Assess Your Finances

You just took a big hit, but it may not be as bad as you think. Big clients bring a lot of work, but the rate they paid you and the time they demanded may not have been as beneficial as you thought. Your ex-customer may have just done you a favor. 

• Look at all the cash flowing into your business each month. Which clients pay steadily, even if in smaller amounts? 
• Consider the smaller accounts that order work occasionally. Are there any patterns you can rely on?
• Add up your monthly expenses, such as employee salaries, rent, utilities and materials. Cut or pause anything that isn’t necessary.

When you are finished going through the numbers, you may find you aren’t as in bad shape as you thought. You also now have a lot more time to focus on scaling your business. 

2. Do Some Self-Reflection

There are many reasons a client leaves. Perhaps the costs were too high for their business model, and they felt they had no other choice. Consider the possible reasons if they weren’t clear about them. Why did you lose your customer? 

• Are your costs too high for smaller brands?
• Check the quality of recent work and any complaints.
• If new ownership or management decided to cut ties, did you communicate effectively about the value you brought?

You should also evaluate your business structure. Did the client poach your most valuable employee and fire you? Maybe it’s time to separate tasks to different individuals so no single worker has the full formula you use.

You should also think about revamping your client base so that one does not make up the majority of your revenue. A single big customer can demand your time and keep you from scaling your business. Losing someone that is a mere 10% of your income is far less catastrophic than one that is 70% of your revenue. 

3. Retain Remaining Clients

At this time, it is crucial to retain the other customers you have. Take the time to reach out individually about their accounts.

• Ask if they have any concerns or needs being unmet.
• Let them know they are your priority.
• Don’t just talk, but put extra effort into every project.

You may have thin survival margins, so focus on keeping your customers even if you have to hold their hands. You’ll have developed loyal core clients as you add new ones to the mix and a skill for avoiding high churn rates.

4. Find New Work Fast

When you first started your business, you had to hustle. It’s time to strap on that same philosophy and get back out there. 

• Talk to current or former clients about additional work they need.
• Invest in digital marketing to get your name out there when a potential client searches for your service online.
• Likewise, invest in printed marketing materials. While this strategy can seem more outdated, it’s still vital, as more than 50% of people believe in the trustworthiness of print advertising.
• Offer a referral fee for current customers who send you a new paying one. Provide a discount on future services for their loyalty.
• Post on social media, asking your friends and family to send any potential customers your way.

In the early scramble to overcome lost revenue, you may need to hit the pavement, spend hours making calls, and respond to online postings and queries. Once you secure a few new clients, you’ll have some breathing space to focus on the quality of clients and ensure you’re a good match.

5. Consider Your Unique Value Proposition

By now, you may have a slight idea why your customer left you. Sit down and write out what you do better than anyone else in your niche. This is your unique value proposition (UVP).

• State the UVP from the viewpoint of your customer. Why should they care? How does it benefit them?
• Remind yourself and your employees what you’re best at and cultivate it as part of your company culture. 

The main element to remember about your UVP is that it should be about how it solves a pain point for your customers.

6. Market Your Services

Now that you’ve caught your breath, it’s a good time to double down on marketing efforts geared toward your target audience. What is your ideal client like?

• Create a customer persona so you’re marketing to the right people.
• Engage with your target audience on social media. Facebook has 2.94 billion active monthly users, but you can consider other platforms as well. Choose one or two and learn them inside and out until you’re gaining followers and shares. 
• Decide if any services take too much time and have too little reward and nix them.
• Network with potential clients by joining a local chamber of commerce group or business owner organization. 
• Advertise in the local newspaper and master online marketing if you haven’t already done so. 

You’ll find plenty of free advice on YouTube and various blogs that can help you create content that drives traffic to your site and get better engagement on social media. Learn from the mistake of losing your biggest customer and strive to add new ones regularly from now on. 

Remember Your Roots

At one time, you got your business growing and thriving all by yourself. You made a strategic error by allowing one customer to take up too much of your time. When they left, you didn’t have enough other revenue streams or a backup plan. 

Life is all about lessons. You just learned one. Take the knowledge, improve your business structure and how you balance your client base, and get back to work. Your company will thrive again before you know it.