Your largest client is 40% of revenue. The risk isn’t losing them.
Concentration is usually insured against as a single catastrophic event. The costs it actually imposes arrive quietly, monthly, and long before anyone leaves.
SBy Steve··4 min read
Ask most owners about client concentration and you get a loss scenario: the big account walks, revenue falls off a cliff, redundancies follow. It is a real risk, and it is the wrong one to plan around most of the time. Large clients rarely disappear overnight. They taper: a project not renewed, a workstream brought in-house, a budget cut by a third. The cliff is uncommon; the slope is normal. Meanwhile, the concentration has been charging you rent for years. Not through the loss, but through everything you agreed to…
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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.