The Big Customer That Could Destroy Your Business | Peter Boolkah

Send us Fan MailWinning a contract with a major customer can feel like a breakthrough. But if that customer controls your payment terms, represents too much of your revenue or fails before paying you, the contract can become an existential threat.In this solo episode, Peter Boolkah uses the 2018 collapse of Carillion to examine business ethics, customer concentration and the risks small companies accept when working with much larger organisations.The lesson is simple: winning revenue is not enough. You must understand who you are trading with, protect your cash flow and be willing to reject relationships that place all the risk on your business.You’ll discover:Why a prestigious customer is not necessarily a safe customerHow extended payment terms transfer risk to smaller suppliersWhy customer concentration can threaten the entire companyHow cash reserves and a strong balance sheet provide protectionWhy suppliers must conduct due diligence on prospective customersWhen a large contract may be more dangerous than valuableWhy deposits and sensible payment terms matterHow to become selective about the organisations you serveWhy a healthy commercial relationship must work for both partiesA business that depends on one dominant customer is not genuinely independent. The objective is to build a resilient company with strong customers, fair terms and enough financial strength to survive when someone else fails.HISTORICAL NOTEThis episode was recorded in February 2018, shortly after Carillion’s collapse, and contains Peter’s contemporaneous opinions about named companies and individuals. Some financial figures quoted during the discussion were early estimates or recollections and should not be treated as definitive historical figures.Learn more about Peter Boolkah and The Hamster Wheel Trap® at https://www.boolkah.comCONNECT WITH PETER BOOLKAHWebsite: https://www.boolkah.comLinkedIn: https://www.linkedin.com/in/boolkahInstagram: https://www.instagram.com/pboolkah/Facebook: https://www.facebook.com/BoolkahX: https://twitter.com/boolkahABOUT PETER BOOLKAHPeter Boolkah is a business coach, author and speaker who has spent more than 20 years helping business owners build stronger, more valuable businesses that do not depend on them for everything.He is the creator of The Hamster Wheel Trap® and author of Your Business Sucks: Build a Business That Works Without Destroying Your Life.Peter works with founders and leadership teams on the issues that ultimately determine whether a business creates freedom or becomes another job: leadership, founder dependency, people, profit, execution, scaling, exit readiness and enterprise value.His approach is direct, practical and built around one simple question:Do you own the business, or does the business own you?Learn more at https://www.boolkah.com