Business Foundationsadvanced
Customer Concentration
Definition
How much of your revenue depends on a small number of customers, often measured as the share coming from your biggest one or few.
Why it matters
High customer concentration is risky because losing a single big client could sink the business, and it lowers what buyers will pay for it.
Example
One client provides 60% of your income, so your customer concentration is dangerously high if they ever leave.
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