A recent study has revealed that nearly a fifth (17 per cent) of Australian SMEs would collapse if they lost just one major client.
As revealed in ScotPac’s SME Growth Index Report, if businesses lost a key client, there would be an average revenue loss of 22 per cent.
Diversifying revenue streams is key to the survival of small businesses, said ScotPac CEO Jon Sutton.
“This feedback tells us that too many SMEs are just one shock away from collapse. Relying heavily on a single client or supplier can create serious vulnerability – especially in a volatile trading environment,” Sutton said.
“In challenging conditions, businesses that diversify their client base and secure flexible funding are the ones…