This is famous line of none other than the legendary Mr. Warren Buffet. As per Mr. Buffet, we should have rather 100 income routes with low income rather than having one income route having a very high income. This is to say that when you have more different incomes, it is safer because even if you lose some routes, you will have decent income from other routes. The same idea can be applied to your business. Rather 'can be', it 'Should be'.
If I were to put it in numbers, you should have no customer having bigger than 20-25 % business share. This is very important. I have heard of many businesses which were doing great, but were dependent on only one or two customers. When such a customer backs off due to internal (part going obsolete, etc) or external factors (your competitor offering lower cost, etc), you are the lone sufferer. You cannot do anything but lose business. And things may come to an extent where you may have to shut shop. Another thing is that if you have one such customer, he may become very dominant. It might go to such an extent that you may be forced to accept most of the clauses or else you may lose business. It goes without saying that if you have no customer bigger than 20 %, you will not be threatened and will be safe even if some of your customer goes off.
This is not to say that this is a pleasant condition. You should do whatever is in your hands to retain customer. But, you will not have any negotiating position for that. If you have such a business, where you are dependent on only one or two major clients, please take the steps now itself to increase your customer base. If any customer is now 50 % or more than 50 %, then add so many customers that the same big customer share is only 20 %. Your business will also increase and your risk will be mitigated.
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