There are a number of ways to build a N10m business:
- 10 customers paying you N1m every year
- 100 customers paying you N100k every year
- 1,000 customers paying you N10k every year
- 10,000 customers paying you N1k every year
Most of us would rather focus on option 1 or 2 above. But then we have to weigh the downsides…
If a single customer is responsible for up to 10% of my business, losing a customer then leads to headache. A serious headache that will keep me up at night praying and strategising how to lock ’em in. It depends on your kind of business anyway, but many times, perhaps it is better to constantly generate small amounts of money from a lot of customers than squeeze out a lot of money from a few customers.
On the other hand however, you have the challenge that comes with dealing with so many people that your low prices attract. How do we maintain and satisfy our 10,000 customers? All those support emails and phone calls to troubleshoot problems that do not exist.
As with most questions in life sometimes the best answer is relative and not so simple. We pick a route to building our own N10m business.
Watching The World
- Many are already calling it ”Mobilegeddon”. Google is making changes to its search engine, going forward, mobile friendly websites will be favored over websites that do not play nice on mobile. (By the way, Websites developed at CloudPitcher are always mobile friendly…)
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