More than once, I’ve experienced the pain a business faces when a large customer goes away.

It’s awful.

Overdependence on large customers presents risks:

• Loss of Control – A large client dictates your business’s direction. If they shift focus or switch providers, your business could be exposed.
• Cash Flow Volatility – Losing a major customer can cause immediate financial strain, potentially derailing growth and even leading to layoffs.
• Negotiation Power Imbalance – A dominant client has leverage over pricing and terms, reducing profitability and limiting reinvestment into growth.
• Stunted Growth – Focusing too much on one client can prevent you from exploring new markets, developing products, or innovating for future success.

Every 6 months or so, we recommend you evaluate your customer base and look for opportunities to diversify.

It starts with regularly analyzing your prospect and customer data in your CRM:

• Does one customer represent a third of your revenue?
• Does your pipeline have new revenue sources on the horizon?
• What data do you have about your current customers satisfaction levels?
• Is anyone likely to churn?

If your business is exposed, here are some ideas to diversify: 

1. Target New Segments – Identify niche markets where your products or services can add value.
2. Leverage Referrals – Encourage current clients to refer others. Offer incentives or create referral programs to reward both parties.
3. Invest in Marketing – Use online channels, social media, and content marketing to build your brand and attract new customers over time.
4. Form Partnerships – Explore alliances with complementary businesses to co-market, cross-sell, or bundle services.
5. Expand Offerings – Consider diversifying your products or services to appeal to different customer needs.

Keeping a close eye on the signs of revenue risk enables you to plan for smooth sailing in rough waters.