- The COVID-19 pandemic isn’t the first crisis that has challenged businesses, and it won’t be the last
- Forbes Technology Council member shares strategies for enduring recessions and other challenges
- Building a diverse client base, putting a focus on liquidity, and more
The COVID-19 pandemic has heavily strained businesses in 2020, but it’s hardly the first time that entrepreneurs have weathered an economic challenge. Business owners have found themselves struggling during recessions, either global or local, as well as personal challenges such as the loss of a major client or the departure of key employees.
In a Forbes Technology Council post, tech company JFrog co-founder and CEO Shlomi Ben Haim shares some strategies on how companies can update their strategies to better endure future crises. He says one important consideration is building a diverse base of customers, with no more than 5 percent of revenue coming from each client, so you aren’t vulnerable to a major loss of revenue if you lose a single account. This diversity should also extend to other areas, such as regions you serve.
Haim also recommends strategies such as a bottom-up approach to sales, having enough cash to cover operations for at least 24 months, and purpose-built teams.
