One of the wisest business strategies you can invest in for the long run is Diversifying your portfolio of shippers and industries serviced. Imagine this scenario and see if you can relate. Your moving 100+ loads a week for a shipper for over a year, your making Six figures, and life is good. Then one day you pick up the morning newspaper as you sip your coffee and it hits you like a mack truck. The headline reads "XYZ company files for bancruptcy." You drop your cup of joe and frantically run to the phone realizing your professional life just made a wrong turn.
Sound familiar? I have heard countless stories similar to the one described. I have talked to Agents and Brokers who had 1 or 2 shippers pulling in $1 million + a year in revenue and literally in a few months losing it all. Some had even more shippers, but they were all in the same industry and netted the same result. It's almost the end of the year, a good time to evaluate your business and strategize for 2011. Look at your industry mix, are all your eggs in one basket or do you have a mix of clients that would keep you a float if a shipper or industry were to tank? Ex: Construction and Housing.
It's easy to become self-assured and complacent when things are going well and believe me I met my quota of self-assured Freight Agents/Brokers. However it's during the good times when you're not struggling when you can afford to re-evaluate your business and adjust if needed. So what's a good mix you ask? Well the answer is, what do you feel comfortable with? Can you sleep at night knowing a shipper or industry represents 50% of your business or will you sleep better knowing it represents only 20%?
Just some food for thought. Thanks for reading.
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