Is a Client Ever Too Big?

Every growing business dreams of landing that one big client, the kind that changes everything.
Revenue stabilizes. Your brand gets credibility. The team celebrates.

But there’s a quieter side to that story.
That same client, the one who put you on the map, can quickly become your biggest risk.

In business terms, it’s called customer concentration risk.
If too much of your revenue comes from one relationship, your entire stability depends on someone else’s decision to stay or go.

A few benchmarks:
- Healthy companies try to keep any one client under 20% of total revenue.
- Above 30%, it’s a material risk.
- Once you hit 50%+, it’s not a client anymore, it’s your boss.

Investors, lenders, and acquirers all look at this metric. It’s one of the first questions in due diligence:

“What percent of your revenue comes from your top three clients?”

Because one canceled contract, one leadership change, or one budget cut can erase years of growth.

Diversification isn’t glamorous — but it’s what turns a good business into a durable one.
If one client makes your year, that same client could break it too.

How do you balance growth with diversification? Do you celebrate the “whale” client or immediately start hunting for the next ten smaller ones? If you do land a "whale" do you limit its growth while you push for diversification?

If you have a whale, how long is too long not to push down the percentages?