Customer Concentration
How much of your revenue depends on your biggest customers — and why buyers care more than you'd expect.
Customer concentration measures how dependent your business is on a small number of customers. The standard way buyers calculate it is the percentage of total revenue from your top customer, your top three, your top five, and your top ten. A business where the top customer is 8% of revenue has low concentration. A business where the top customer is 35% has high concentration. A business where the top three customers are 60%+ of revenue has dangerous concentration — and that's true whether the business does $400K or $40M.
Customer concentration is one of the three things buyers worry about most, alongside owner dependency and earnings quality.
Buyers don't just look at the percentage — they look at how loyal the customer is to the business versus to you personally.
Find out what a buyer would see in your business — before you talk to one.
The Exit Desk free assessment takes 2 minutes. If you'd rather see what a full report looks like first, read a sample.
