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When disputes come up with your biggest customer

It is not uncommon for a small business to have a smaller customer base. Some such companies get a majority of their business from just a few customers, or even just one. When this is the case, a big portion of the company’s financial well-being can be tied to how things are going with their biggest customer. So, one of the things that could keep a small business owner up at night is fear of someday losing their biggest client.

One thing that could help with addressing this fear is working to build a broader customer base. Another is taking efforts to ensure the relationship with big customers remains strong. Now, there are many things that could impact a big customer’s likelihood of sticking with a business, including:

  • The number and quality of contacts the business has with the customer.
  • The level of attention the business gives the customer.
  • How the business handles disputes that come up with the customer.

In today’s post, we’ll focus on that last one. Disputes have the potential to put a business’ relationship with a major customer significantly at risk. So, one of the things a small company may want to put a high priority on is reducing the likelihood of disputes coming up with a big client. Among the measures that could help with this goal is being very careful about the terms and content of the contracts one forms with one’s biggest customers. This is because how well a contract is drafted can impact the likelihood of disputes someday coming up over the contract.

Now, sometimes, despite a company’s best efforts to prevent it, a dispute (like a contract dispute) does end up arising with a client that gives the company a lot of business. There are a lot of different ways a business dispute could be dealt with. When the dispute is with a big client, it could impact which of these ways would be best for the business, as keeping the relationship with the customer strong might be one of the major goals the company has for the resolution of the dispute.

So, when contract issues or business disputes come up regarding a major customer, a small business owner may want to promptly reach out to a skilled business lawyer for guidance, given the high stakes the matter could have for their company.

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The Barbknecht Firm, P.C.
1700 Alma Drive, B Tower
Suite 290
Plano, TX 75075

Phone: 972-905-9263
Fax: 972-312-1511
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