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When “One” is the Riskiest Number in Business: A Deep Dive into the “Problem of One”

Success in business often means finding what works and doubling down. Maybe a big client lands in your lap. Maybe a social media channel finally starts generating leads. The temptation to focus exclusively on that one powerful asset is huge—after all, the numbers look great, and your energy is best spent where you’re seeing results, right?

That’s only half the truth. The best piece of business advice I’ve ever received (and the most valuable I regularly share with clients) is what I call the “Problem of One”—and if you don’t recognize when you’re caught in its web, you could be setting yourself up for eventual disaster.

What is the “Problem of One”?

The “Problem of One” is simple, but profound: if any single point of dependency—one big customer, one channel, one supplier—makes up the backbone of your business, you are living in a house of cards. Remove that one card, and everything collapses.

Let me break this down:

- One Big Customer: They pay the bills, yes. But what happens if they change their mind, switch suppliers, run into cash flow issues, or (worst-case scenario) go out of business? Suddenly, your reliable, predictable revenue is gone—and you’re likely left with unpaid invoices, lost momentum, and possibly even staff or investments you can no longer support.

- One Sales Channel: This is an especially common trap in the digital age. Maybe Google Ads, Instagram, or Facebook has become your key driver for leads and sales. But these platforms frequently change algorithms, policies, and pricing—and accounts are routinely banned, sometimes mistakenly or with no warning. If you’re monogamous with your platforms, you’re courting catastrophe.

- One Vendor or Product: Even if you’re on the supply side or in another industry, the rules are the same. If your whole process relies on one manufacturer, or if your best-seller is carrying your shop—even though you may feel stable in the short term—your resiliency is close to zero.

This isn’t hypothetical. In my 30+ years helping businesses of every size put together robust marketing strategies and digital infrastructures, I’ve seen this play out time and again. When “One” is the magic number, it’s only a matter of time before the magic wears off.

Real World Tales: “One” Leads to None

Let me share two true-to-life stories that illustrate just how insidious the “problem of one” can be:

The Anchor Client Nightmare

A local business owner, let’s call her Sarah, built her consulting shop around a single sizable client. That client comprised about 85% of her monthly revenue. They loved her work, paid well (and frequently ordered extra services), and she stopped aggressively prospecting for new clients because her plate was full.

For three years, it worked—until the client’s industry took a hit, and they decided to bring all consulting in-house. Sarah went from thriving to scrambling overnight. Not only did she lose almost all her income, she had no current pipeline, and previous prospects had long since moved on. Catching up took over a year, during which she burned through her personal savings.

The Facebook Funnel Folly

Another example hits even closer to today’s digital landscape. My friend Dave recently discovered Facebook as a powerhouse for driving leads to his service business. After some trial and error, he cracked the code—ads were working, he was closing contracts, and his business was hitting new highs. Elated, Dave shifted his focus almost entirely to Facebook, even reducing his efforts on his website and email newsletter.

Here’s the catch: Facebook, like every major social platform, operates with its own mysterious rules—and enforcement can be unpredictable. One day, with no warning or clear explanation, his ad account was suspended. He tried appeals, but the process stretched on for weeks. Dave’s lead flow dried up overnight, and his team sat idle, waiting for “the machine” to start up again.

Luckily, he still had his website and email list, but because he hadn’t maintained them, his “Plan B” was weak and underutilized. His recovery took months, and he learned a hard lesson.

Why Do We Fall Into the “Problem of One”?

If it’s so risky, why does this trap lure us in? Simple: focus. Business wisdom tells us to “niche down” and concentrate on what works—advice that isn’t wrong. The danger comes not from focus itself, but from exclusivity. We become so busy maximizing today’s opportunity that we forget tomorrow’s uncertainty.

Here’s why people get stuck in this trap:

- Immediate Rewards: Doubling down on what already works is efficient and profitable—at least for a while.

- Limited Bandwidth: When resources are scarce, it’s tempting to “stick with the winner” and ignore untested or uncertain opportunities.

- False Security: A major client or channel can make us feel protected, even invincible. As humans, we tend to underestimate the risks of low-probability, high-impact events.

Spotting the Signs: Are You at Risk?

So how can you tell if you’re dangerously exposed to the “problem of one”? Here are a few diagnostic questions to ask yourself:

- Does one client or customer account for more than 40% of your revenue?

- Do you generate most of your leads or traffic from a single platform or partner?

- Is your fulfillment process dependent on one critical supplier or staff member?

- Are there any single points of failure in your marketing, finance, or operations systems?

If you answered “yes” to any of these, it’s time for action.

Testing Your Business “Balance”

Imagine removing your biggest customer, your main sales channel, or your most crucial team member from your business. Pause and write down, in detail:

- What would immediately stop working?

- What revenue would be lost next month (and in the following quarter)?

- Do you have alternatives ready to step in?

This simple exercise will highlight your pain points. The more dramatic the potential impact, the more urgent your need for diversification.

How to Solve the Problem: Practical Steps

Escaping the “problem of one” doesn’t mean losing your focus or acting recklessly. Instead, it’s about building redundancy and resiliency into your operations. Here’s how:

1. Duplicate Your Success

Rather than replace your top customer or channel, find a way to duplicate it. Set a target: no single client or channel should account for more than X% (say 25–30%) of your total business.

For example: If you land a big client making up 50% of your revenue, make it your mission over the next 6–12 months to double your total revenue by bringing in more, smaller clients.

2. Develop Multiple Lead Streams

If Facebook is working for you, fantastic. But while the leads are flowing, invest a portion of your energy into alternatives:

- Email newsletter growth and content marketing

- Search engine optimization (SEO) for organic leads

- LinkedIn networking and outreach

- Paid search on alternative channels (Google, Bing)

- Physical marketing—direct mail, networking events, door-knocking, whatever fits your space

The idea isn’t to dilute your focus all at once, but to scale new channels steadily. Remember, platforms come and go, but your business needs to last.

3. Diversify Your Offerings and Buyers

Are you overly reliant on a single service offering or industry sector? What adjacent markets or product lines could you expand into, either as “add-ons” or new stand-alone offerings?

Likewise, broaden your buyer base. If your business comes primarily from word-of-mouth or a single industry niche, investigate new prospect segments.

4. Systematize and Document

Don’t let your operation revolve around any one employee, including yourself. Document your processes, cross-train your staff, and make sure critical knowledge doesn’t exist only in the head of one person.

This principle applies to vendors and suppliers as well. Always have at least one backup option—even if you don’t use them, keep the relationship warm.

5. Build Your Emergency Fund

Financial resiliency matters too. If you’re making hay while the sun shines with your “one,” allocate a portion of that bounty to an emergency fund. Three to six months of operating expenses can buy precious time if disaster strikes.

6. Stay Curious and Keep Networking

Don’t let your curiosity atrophy. Continue learning about industry trends, emerging channels, and innovating your products and services. Relationships matter—build a strong network of peers, customers, and vendors so you’re never isolated, even if you face a setback.

What About Passion and Niche?

Some readers may be thinking, “But I want to focus! I serve a very specific type of client, or a very limited market. Isn’t that the whole point?”

Absolutely—but focus and redundancy are not in opposition. You can be tightly niched and diversified:

- Serve multiple clients within the same industry rather than relying on just one

- Use different outreach methods to reach your ideal audience, not just one platform

- Develop various price points or service tiers for the same market

Even in the most specialized corners of business, you need insurance policies. The “problem of one” isn’t about saying “no” to a great opportunity—it’s about refusing to depend on it.

Turning Advice Into Action

So what should you do, right now, if you recognize the “problem of one” in your business?

1. Take Stock: Identify your single points of dependency.

2. Set a Target: Create a realistic timeline and goal for redistribution (for example, reducing one client’s dominance below 40% of your revenue within nine months).

3. Take Action Daily: Carve out time every week—even just a couple of focused hours—to pursue new channels, prospects, or backups.

4. Monitor Progress: Revisit your revenue (or traffic, fulfillment, etc.) breakdown regularly. Celebrate as you gain balance.

The Payoff: Peace of Mind and Long-Term Growth

Nothing in business—including success—lasts forever. Industries shift. Clients move on. Platforms change their rules. By addressing the “problem of one” and building multiple sources of revenues, leads, and operational fulfillment, you create a true foundation for sustainable growth.

Even more importantly, you buy peace of mind. You sleep better knowing a single contract, click, or algorithm tweak won’t erase what you’ve built. And, in the best-case scenario, the new opportunities you pursue may just become future “ones” in their own right—a virtuous cycle of growth, not risk.

Final Thoughts

Whether you’re a freelancer, a local services provider, an e-commerce operator, or a rapidly scaling organization, remember this: the “problem of one” is the silent killer of promising enterprises. It sneaks up when things are going well. It sits quietly behind those rosy revenue numbers. And it’s only a matter of time before it looks for a weakness.

Take the warning, and take action. Your future business self will thank you for your foresight—and your ability to sleep soundly even amid uncertainty.

I’m SB Web Guy, your Santa Barbara web and marketing consultant. For more advice on building robust, resilient businesses that thrive in every environment—subscribe, share, and stay connected. Your business success is too important to leave to chance.