Contributed by Adam Robinson, the Chief Hireologist at Hireology, located in Chicago, Illinois.
I started my business in 2004. By the middle of 2007, sales had grown to $4M a year. I had 21 employees, a great culture, and was a leader in the industry. I had my sights set on the Inc. 500.
Being an upstart business-outsourcing company means that you have a small number of customers who generate a huge percentage of your revenue. In my case, I had two clients on multi-year agreements, which together made up 75 percent of my company’s business. Furthermore, running an outsourcing firm is incredibly capital-intensive. Combine a cash-tight business model with 300 percent growth, and I was one late-paying customer away from coming unglued.