Customer Diversity Will Help You Sleep At Night - Bill Black

We’ve been talking about creating a culture of independence. We are going to wrap up this chapter today as we talk about customer independence.

 If you´re too dependent on any one customer, your business will be highly unstable. Try to work your customer concentration down to a point where your largest customer represents no more than 15 percent of your revenue. You´ll sleep better at night and have a more valuable company when it comes time to sell.

What percentage of your overall revenue did your largest customer represent last year?

Rank your customers by the percentage of your overall revenue each represents. How can you increase sales to your smaller customers or find new customers so as to lessen your customer concentration without shrinking your revenue?