Yesterday we got personal, today we get serious. About clients. How many that is. How many you need before taking the big leap. A slippery subject, it depends on several factors, not the least of which are:

• Your overhead
• Your revenue goals
• How much time you have to work on freelance projects
• How good you are at marketing your talents
• And of course, how talented you are

Can you start out a business with only one client? Sure. Some designers, like James Archer of Forty Media, have even done it with none.

For the designer who heads out with just the one, it’s typically due to a client giving them a good amount of work. But if that relationship sours, it’s potentially big time dangerous. Unless you have adequate capital to cover yourself (and most don’t), you’re back out looking for an in-house job. Real quick.

Walk a ways with us to see what often happens … You get a freelance client. They give you a ton of work. So much so that you’re bringing in more money than at your in-house job. You take the leap of freedom, but in essence, you only changed jobs. You were figuring that you’ll get more clients being on your own. Problem is, Mr. Big Client is keeping you so busy, you don’t market your business. Then disaster strikes. Your contact leaves the company and the new person brings on “their people.” Or another designer snags them. Or you have a falling out. Or the company goes under. Or they just don’t need you anymore. Instead of enjoying the next phase in running a business, soon you’re flat broke. You’re scratching through the want ads. Or worse.

Here’s three thoughts on single clients and income

1. The typical client/designer relationship last three years
2. If you’re making the majority of your income from one client, the tax people may want to classify you as an employee
3. If that one, single client represents more than 40% of your total revenue, you could be on shaky financial ground

A good target would be at least two “anchor” clients that generate, say, 50% of your revenue. If one goes south, you’ll take a hit, but will still be floating. The other 50% comes from four to six smaller clients.

And don’t forget the turnover rate of three years. New business really is the live blood of a designer’s practice. So to keep the client flow, you really do need to keep marketing.

Coming next will be couple of client confessions. Ours, not the client’s. (Oh, how, we, wish!)

See you there,
The BoDo Team
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