No customer should be more than 15% of your turnover
In business, customers is all, without them, you ain’t got no business….
Finding them in the first place is a hard task, never mind keeping them, once you’ve got them. And it goes on and on. However, you should remember that you must never have one client that dominates more than 15% of your turnover. For the obvious reason that customers will move on, want to try someone/thing else and if you have one dominate customer and they leave what sort of hardship would that cause you?
The trick is to have loads of customers and that’s easiest said than done. If you think of your reputation as well as your business model, losing customers is very hard. So for example you might own a restaurant and a food poisoning outbreak occurs, then your going to lose all your customers in one stroke, a good regular customer who a member of staff upsets will go elsewhere, but it wouldn’t take too many customers to go elsewhere if that problem persists. Or maybe you’re a market gardener and a large supermarket buys 75% of what you grow and then decides to go elsewhere! or worse insists that you are their sole supplier, and on a whim! give notice and go to a competitor?
Your product and service has to be “bomb proof” against all types of scenarios and when a dominate customer does come into your business you must make sure that you are in control and they don’t control any more than 15% of your business