Two customers are 45% of gross profit. The risk is not that they leave.

Concentration is usually measured as a departure risk. The damage tends to arrive years earlier, through the price and the shape of the business.

By Steve 5 min read
Abstract bridge artwork for Two customers are 45% of gross profit. The risk is not that they leave.

Most owners know their concentration figure roughly. It is usually quoted as a share of revenue, usually from memory, and usually accompanied by a reassurance: the relationship is twenty years old, the contact is a friend, they have never so much as threatened to go elsewhere. All of that can be true and the business can still be paying for the concentration every month. The failure mode people prepare for is the phone call that ends the account. The failure mode that actually occurs is slower, quieter, and shows up…

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 Market analysis

Scroll to Top