The difference between a pinch and a punch is as simple as preparedness. Being prepared for obstacles and setbacks means that your business will feel a pinch, rather than a punch.
Do you have a client(s) that makes up more than 25% of your revenue? If so, losing one would be a gut punch to your bottom line. If each client took up no more than 15%, that punch would be a pinch. Uncomfortable, but not impossible to overcome.
In the personal finances realm, this is called rainy day funds or emergency fund. In the business realm, it’s called being smart.
Know your business and where you make your money.
You’ve heard the saying “hope for the best, plan for the worst.” I prefer to plan for the best, be ready for the worst.
Make a plan to avoid being – or move away from being – beholden to single or limited sources of revenue (clients). A golden goose is great, for a season, but being ready for the day the goose flies, is greater.