Two accounts are 40% of revenue. The damage is in the other 60%.

Customer concentration is treated as a revenue risk. The more expensive part has usually already happened, somewhere else in the business.

By Steve 5 min read
Abstract bridge artwork for Two accounts are 40% of revenue. The damage is in the other 60%.

Most owners of a concentrated business can recite the number without checking. Two accounts, 40% of revenue. It appears in the board pack, sits near the top of the risk register, and is answered with the same plan each year: win more clients. The number is real and the plan is reasonable. But it tends to mislocate the damage. By the time one relationship reaches that share of revenue, the loss being insured against has already partly occurred, not in the revenue line, but in the shape of the business…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Growth strategy

Scroll to Top