The Customer Concentration Worksheet

I mentioned earlier that my old employer was, in every way that mattered, one client. My paycheck depended on one company staying alive, in one industry, forever. I didn’t have a name for that back then. I only had the wreckage it left behind.

Here’s the name: the concentration line. Every business, including a business of one person with a job instead of a company, has a point where a single customer, platform, or vendor stops being a relationship and starts being a dependency. Below that line, losing the account hurts. Above it, losing the account ends you.

This is the exercise I wish someone had handed me before 2007, instead of after. Pull your last twelve months of revenue, list what you actually depend on, and find your line before it finds you.

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