Two clients are 40% of revenue. Losing them is the least of it.

Customer concentration is usually described as the risk of a client leaving. The more expensive damage is done while they stay.

By Steve 5 min read
Abstract bridge artwork for Two clients are 40% of revenue. Losing them is the least of it.

Ask an owner about customer concentration and the answer is almost always framed as a loss event: if that client went, we would be in trouble. The number gets watched, occasionally worried about, and filed under risk. But the loss scenario is the least interesting part of concentration, partly because it is the part everyone can see, and partly because it is often the least likely outcome. Large clients tend to be sticky. The harm arrives through a slower channel: the business quietly reorganises itself around the account, and by…

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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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