Customer Concentration Risk: How To Calculate Your Ratio

Forbes Magazine recently called high customer concentration one of the greatest risks to business. Many experts say if any single customer accounts for 10 percent or more of your revenue or if your largest five customers account for 25% or more of revenue, you have a high customer concentration. How’s your customer concentration?

You can calculate your customer concentration risk by dividing the revenue from your top customer by the total gross revenue of your business in a year.

Source: exitpromise.com

2017-12-06T06:33:36-05:00