The Huge Fallout This Entrepreneur Faced When He Put All His Eggs in One Basket David Steinberg, co-founder and CEO of Zeta Interactive, had to redirect his company and find new assets after his clientele base nearly disappeared.

By Grace Reader

Opinions expressed by Entrepreneur contributors are their own.

David Steinberg, co-founder and CEO of Zeta Interactive, a data and analytics company, learned the hard way that you can't put all of your clients in one basket.

When his company launched in 2007, the company's main clients were for-profit education companies -- which ended up being a huge issue. "We woke up one day and there had been a regulatory change that really hurt their businesses," he says in a video.

This change nearly wiped out Zeta's customer base, forcing Steinberg to make a change. "I felt like I had not been the leader I should have been in that moment," he recalls.

Related: Managing a Crisis to Avert #Majorfail

The company repurposed its platform to reach other clients, and today focuses on financial services, insurance, travel, automotive and communication services as well, according to Steinberg.

Check out the video to hear more from Steinberg's misstep and how he pivoted his company to get back on track.

Grace Reader

Contributor

Grace Reader is a former editorial intern at Entrepreneur.com and a current freelance contributor. She is a third year journalism and media communication major at Colorado State University. Grace is the PR and marketing manager at Colorado State University's Off-Campus Life, and a sports anchor at CTV Channel 11. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Solutions

Windows 11 Pro for $20: Built for Business Owners Who Do It All

A one-time payment gives you lifetime access to the tools you need to secure data, streamline workflows, and scale your business.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Starting a Business

'Don't Wait Until Everything Is Just Right': How a Common Frustration Inspired This Entrepreneur to Co-Found a Thriving Business

Mike Mayer, co-founder and co-CEO of Windmill, shares how an annoying struggle with an air conditioning unit sparked the idea for an innovative air quality company.

Money & Finance

Startup Founders Need to Advocate For Their Own Compensation — Here's How to Do It Right

Ensuring fair compensation as a founder or CEO is crucial to staying motivated and building a successful company. Here's how to strategically handle the conversation and get the pay that reflects your worth.

Business News

Walmart Is Laying Off Hundreds, Relocating Others as the Company Closes a U.S. Office

Walmart is giving some employees at least a month to decide if they want to relocate.

Science & Technology

3 Reasons Why Web3 Will Flip Digital Ownership On Its Head

Here are the three things that Web3 could completely change about digital ownership.