Too Much Risk in One Basket? Four Smart Moves to Reduce Customer Concentration Risk

We’ve talked about how customer concentration can quietly shape risk, valuation, and operational stress in your business. Now let’s talk solutions.

The good news? You don’t have to overhaul everything or fire your best client. There are small, strategic shifts that can make your business more resilient—without losing what makes it special.

Here are four moves I help clients make:

1. Diversify your customer base.
   Start actively seeking new accounts—particularly those outside your core niche or geography. Even one or two new clients can shift your revenue mix and improve stability.
2. Strengthen your contracts.
   If you do rely heavily on one client, make sure the relationship is protected. Negotiate longer terms, clearer renewal clauses, or exit terms that give you lead time.
3. Deepen your value proposition.
   Be more than a vendor—become a strategic partner. The more indispensable you are to a client, the harder it is for them to leave. At the same time, document your systems so that others on your team (not just you) hold the relationship.
4. Build operational and financial resilience.
   Work toward cash reserves, diversified suppliers, and cross-trained team members. When you’re less reactive, you’re more adaptable.

Bottom line:
Customer concentration is a common challenge, but it’s one you can manage with foresight and strategy. These aren’t overnight fixes—but they are steps toward a more stable, scalable, and valuable business.

And if you’d like help identifying where to start, I’m here. One conversation can open up a lot of clarity.

Until next time—build smart, grow smoother.