Your biggest customer may also be one of the biggest risks in your business.
A large customer can bring steady revenue, better utilization, and growth opportunities. But over time, that relationship can quietly begin shaping your staffing, pricing, capital investments, cash flow, and even your ability to say no.
In this episode of Things Entrepreneurs Should Know, Chip Schweiger looks beyond the usual customer-concentration percentages to a more important question: How dependent has your business become on the decisions of a single customer?
You’ll hear why a highly valuable account isn’t necessarily a highly profitable one, how customer dependence changes negotiating leverage, and why the best time to reduce concentration risk is often when everything is going well.
The goal isn’t to get rid of your best customers. It’s to build a business that can survive without any particular one of them.
For show notes, past episodes, and more from Things Entrepreneurs Should Know, visit TESKPod.com.
Want to continue the conversation? You can reach Chip directly at Chip@Schweiger.CPA
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Things Entrepreneurs Should Know is provided for general informational and educational purposes only. Nothing in this podcast should be considered accounting, tax, legal, investment, or other professional advice.
