To ensure your business is healthy and ready to sell, it is important to reduce customer concentration by diversifying the client base.
It is a disadvantage when business owners focus all their energy on only their major customers. To ensure a healthy mix of customers business owners should build relationships with current customers while seeking new customers. A general rule of customer mix is any customer over 10% of the business is too big.
A diversified client base is beneficial to scalability, valuation and maximizing cash received at closing. Here’s an article that talks further about the mitigation of customer concentration: