If a major customer goes bust, look out: such an event could be the tip of an iceberg, pointing to larger, deeper troubles within your industry.

However you should always be prepared for the loss of your biggest customer. It isn’t that you deserve to lose them; rather, that all eventualities should be planned for in advance.

If you are unprepared, cashflow is likely to be your most pressing issue. The golden rule is to aspire to have no more than 12 per cent of your business invested in an individual customer.

You may be familiar with the old Boston Consulting Group box theory. This divides customers into four types: the rising stars, the cash cows, the problem children (also known as “question marks”) and the dogs.

The rising stars are customers who are still small, but will grow and become profitable.

The cash cows are your established customers. They are little trouble. You have productive, profitable relationships with this group.

The problem children always want more. They are always asking for bigger discounts and additional services, but they are unwilling to pay increased charges. Your sales director is reluctant to cut ties, because your relationship with them “goes back a long way”.

The dogs take forever and a day to pay, moan about everything and are voracious consumers of your time and energy. They are, in short, emotional vampires.

You should get rid of the dogs, because they are wasting your resources. As for the problem children: they may also be headed for the exit.

As for your cash cows: what will happen to your cash flow if cash cows croak? Who will replace them?

The answer: your rising stars. Unfortunately, many business leaders do not bother much with the rising stars. This is because their attention is taken up with the problem children and the dogs.

This is a mistake. Work on your rising stars – and reduce your risk.

Image credit: jared.