What To Do When You Lose A Big Customer, And How To Prevent It

When I worked in private equity, we would often decide not to invest in an early stage company due to high customer concentration (a large percent of revenue from one or two customers) which made the investment risk too great. And yet, as an entrepreneur, if Target decides they want your product and your sales will suddenly triple, are you really going to say “Sorry Target, I don’t want the customer concentration, I can’t do business with you.” It might be the smart thing to say, but it ...