One client is 38% of revenue. They also wrote your operating model.

Revenue concentration is measured as a risk to be diversified away. The more expensive effect is what it has already done to how the business runs.

By Steve 5 min read
Abstract bridge artwork for One client is 38% of revenue. They also wrote your operating model.

Most owners can quote their concentration figure from memory. The largest client is 38% of revenue, or 45%, or in a few uncomfortable cases 60%. It appears in the risk register, gets discussed once a year, and generates a resolution to win more mid-sized accounts. That framing treats concentration as a single-event risk: the client leaves, revenue falls, the business absorbs the hit. It is a real risk, but it is the least interesting one, because it is the one everybody has already thought about. The costlier effect is quieter.…

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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.

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