Multiple Clients Create Your Independent Business

Would you rather have one good client paying you five thousand dollars per month or ten smaller clients paying you five hundred dollars each per month? Here are two good reasons for choosing multiple clients over just one client.

1. Avoid Dependence on One Client

Don't put all your eggs in one basket. If you have only one major client and lose them, you have zero income overnight.

Knowing that they are your sole (or main) source of income, some clients will make some unfair, unreasonable demands of you. They can get away with it because they know you are in a very poor bargaining position.

You could also end up losing a good client for reasons beyond your (or even their) control. Bankruptcy, sale or bequest of the business to someone else, or a new manager who has made other arrangements are just a few ways you can lose such a client.

You are much better off to have several clients. If you lose a client that represents ten percent of your income, you still have ninety percent of your income left.

2. Clarify Your Self-Employed Status

Self-employment status has certain tax advantages over being employed. Although there are other factors to consider in making this determination, the more clients you have, the less likely that you will be classified by the tax authorities as being an employee.

For example, if you do all your work for one client at his office, a good case could be made that you are his employee. If you work for two different clients at their offices (or even your own), a case could be made that you have two different part-time jobs.

On the other hand, if you have a hundred different clients you work for, it is unlikely that anyone would argue that you have one hundred part-time jobs.

So, to avoid dependence on any one client and to clarify your self-employed tax status, choose several clients over just one or two clients. For increased success and to be a truly independent business, obtain multiple clients.

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

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