As a self-employed service provider, you have the choice of whether you prefer to work for small or large clients the advantages.
Both have advantages and disadvantages, which I will discuss in more detail below.
I also look at what other self-employed people prefer from their customers.
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Small or large customers?
If you are an independent service provider looking for customers. You basically have a choice the advantages. Would you rather go after many smaller customers or concentrate on a few large customers?
The choice of marketing measures depends on this decision. Ultimately, you reach these different types of customers in very different ways. On the other hand, you have to say that as a founder, you are sometimes happy about every new customer, since the order situation is usually not so rosy, especially at the beginning.
Nevertheless, it makes sense to think about what kind of customers you want and what measures you should use to achieve this. After all, small and large customers offer different advantages and disadvantages.
Advantages of small customers
There are lots of small customers and many self-employed people mainly encounter these in the beginning. This has several advantages the advantages.
The orders from small customers are often not so large, which means that they are manageable and can be completed within a foreseeable period of time. This reduces the risk of taking on too much and also means that the invoice can be issued more quickly. The fact that the orders are smaller also means that you don’t have to pay as much in advance, which is particularly important for activities where, for example, a lot of material has to be procured.
Another advantage is the short decision-making processes that small customers usually have. You often deal directly with the owner, who then usually makes decisions very quickly, instead of having various meetings and decision-makers first, as is the case with large companies.
Last but not least, I have noticed that small customers are often more loyal, that is, they become regular customers and also have better payment habits.
Benefits of Large Customers
But large customers also have advantages that should not be underestimated. A large order ensures long-term employment and you don’t have to constantly look for new customers. In addition, profits are often higher with large companies because you can simply set higher prices.
You should also not underestimate the reputation that comes with larger orders. It really helps when looking for new customers if you can provide a well-known reference.
But there are also disadvantages
Of course, there are not only advantages for both customer groups. The acquisition costs for small customers are naturally higher, as is the administrative costs.
With large customers, however, the risk is higher because if a large customer drops out, a substantial portion of the revenue is lost.
You should also not forget that there are good and bad customers for both types of customers. That’s why you shouldn’t be blinded by a profitable order alone, but rather look closely at the small print and trust your gut feeling. Because no matter how big or small, an unpleasant customer is simply not nice. Unfortunately, I speak from my own experience.