The Most Dangerous Number in Business

The Most Dangerous Number in Business

The most dangerous number in life is 1 - it carries the most risk. There is a reason why they say don’t put your eggs in one basket. It is also the most dangerous in branding and building a business. It is the single point of failure. It is the cause of bottlenecks. It is the unicycle that falls easily - a bicycle has more stability. And children are given tricycles or bicycles with training wheels - they are more stable. Lemme explain, on the business front.

1. Don't limit yourself to one platform for brand awareness.

Avoid depending solely on one platform, as it could lead to disaster if it fails. I recommend that you have 2 to 3 ways that people learn about you and 2 ways they engage with your thoughts before they buy - and they could be the same ones that you raise awareness with. We have Instagram and the Website for awareness. And Instagram and the Newsletter for engagement. What are your platforms?

2. Don't depend on a single client for the bulk of your profit.

If a single client contributes more than 50% of your annual profit, they're not your client; they're your boss. Fear of losing them will make you prioritize their wants over their needs - and your needs. Your business gets built upon what they want rather than your competencies and areas of specialization. Instead, ensure your biggest client contributes no more than 30% of your profit. Diversify your income sources.

3. Avoid offering only one product or service.

A single product offering leads to a take-it-or-leave-it mindset. Apple, for example, launched the iPhone 14 in two models as well as two models of iPhone 14 Pro, providing customers with options. I recommend that you strive to offer three choices: a budget, standard, and premium option.

Product Business: Offer single items, combo deals for multiple items, and value packs for your entire product range. Consider memberships or subscriptions for added value.

Service Businesses: Present clients with three service options at different price points and values. Yes, even if they came ready with an idea of what they want from you. This educates them on how much more you can do and encourages deeper engagement, resulting in increased customer satisfaction and revenue.

4. Don't stick to a single logo version.

Your brand should have at least three logo orientations and color formats.

Orientations: The main lockup is ideally the horizontal version - this is for normal wide usage. Then have a vertical/stacked version - this is for square and round spaces where the normal lockup would be too wide or medium-sized spaces. Then have the brand icon - this is used in extra small spaces like profile photos and favicons.

Color Formats: You need the main lockup, in full brand colors, ideally on a white background. Then an inverted version is to be used on the dark backgrounds. Then monotone versions for engravings, embossing, black and white prints, and such usages.

5. Avoid over-dependence on one employee.

Life happens: job shifts, illnesses, and death happen. You really can’t control it but you can prepare for it. Establish systems and proper documentation that enable others to step in when necessary. I know of an organization that mandates a month of leave, during which colleagues take over the absent employee's projects. There is only one guide - no one on leave is to be contacted at all. They even change the logins to company items and disable notifications so that you won’t even get a notification concerning your projects.

6. Don't focus solely on one demographic.

Embrace a global mindset to reach various customer segments. SUED Watches, a Nairobi-based company, ships worldwide using DHL. By targeting different markets, they reduce the risk of relying on a single demographic. If the Kenyan market is at risk, she can still keep selling to another market that isn’t affected by Kenyan market problems - business continues!

7. Don't stick to just one supplier or vendor.

Relying on a single supplier or vendor for your business needs can lead to significant risks. If they face issues like production delays, quality problems, or even bankruptcy, your business operations can be severely affected. To reduce this risk, establish relationships with multiple suppliers or vendors, allowing you to maintain a steady flow of products or services and ensuring that you have backup options if your primary supplier encounters problems.

Takeaways:

In conclusion, the most dangerous number in life and business is 1. To mitigate risk and ensure the stability and growth of your business, strive for diversity in all aspects of your venture. By following the takeaways listed above, you'll build a more resilient foundation that can withstand challenges and drive long-term success.

We simplify brand building for those starting, growing, or changing direction.

You will receive all our key articles straight to your email, once a week.

Recent thinking