What happens to agency cash if the largest client leaves?

A client-loss scenario needs a date, notice terms, and a view of what the client still owes. Separate termination of future work from collection of existing invoices. Losing a retainer does not automatically erase receivables, and collecting an old invoice does not replace the recurring fee.

Confirm the contractual facts with the account owner and legal adviser where necessary. Include remaining deliverables, approved expenses, refund obligations, and any transition support the agency has promised. Do not assume the full monthly fee stops or continues without reading the agreement.

Map employees, contractors, software, and supplier commitments to the account. Distinguish costs that stop immediately from costs that continue through a notice period or are shared with other clients. Employee changes require appropriate legal and operational review; a spreadsheet scenario is not an instruction to make them.

If an illustrative $20,000 monthly retainer uses $8,000 of cancellable outside work and $7,000 of employee capacity that remains paid, losing the account does not reduce cash costs by the full $15,000 at once. The timing of the $8,000 reduction also depends on the actual cancellation terms.

Build a base case using contracted work and a separate recovery case for prospective clients. Put expected start dates, deposits, delivery costs, and collection terms into the recovery case. A $20,000 proposal is not equivalent to $20,000 of next-month bank receipts.

Consider whether the freed team can deliver replacement work without another hiring or training cost. The same capacity that supports a sales recovery may be needed for the departing client's transition. Schedule both before assuming the staff is immediately available.

Identify the lowest cash point, the decisions that would need approval, and the date by which each decision must be made. Possible responses include reducing discretionary commitments, adjusting the sales plan, or building a larger operating buffer. Evaluate each against service obligations and the rest of the client portfolio.

Review concentration using revenue, contribution, receivables, and committed capacity together. A large client with prompt payment and flexible delivery costs presents a different risk from one with slow collections and dedicated fixed commitments. Refresh the scenario when the contract or staffing arrangement changes.