Do You Have All Your Eggs in One Basket?

Many fast growing companies fall into the trap of having one customer account for over 50% of their revenue. This happens when that one customer grows rapidly as a major revenue source. The initial euphoria turns into a dangerous situation when that company becomes overly dependent on them. While the rapid growth is being fueled by this customer, their future cash flow and profit depends increasingly on them. This makes the company very vulnerable to changes in that customer's financial position...