David C Barnett Small Business and Deal Making M&A SMB

Customer Concentration Risk: The Hidden Danger Most Small Businesses Ignore


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Customer Concentration Risk
***New Video Alert!
I’ve been making YouTube videos for 11 years and this is the first one about customer concentration??
Today, we fix that and look at this from all points of view.
Sellers
Buyers
Bankers
Check it out in this week’s new video: https://youtu.be/1t-MdRHTijQ
Cheers
See you over on YouTube
David C Barnett
#smallbusiness #mergersandacquisitions #M&A #CustomerConcentration #BusinessAcquisition #BusinessValuation #ExitStrategy #DealStructuring #SmallBusinessRisks #EntrepreneurshipTips #BusinessBuyerAdvantage #SmallBusiness #Entrepreneurship #BusinessGrowth
#BusinessStrategy #FinancialFreedom #BusinessPodcast #BusinessCoaching #StartupTips
***
0:00 Intro
01:15 What Is Customer Concentration Risk?
03:40 Why Customer Concentration Matters in Small Business
06:10 Buyer’s Perspective | Risks of Losing a Major Customer
09:05 Seller’s Perspective | Why Many Owners Overlook the Risk
12:30 Lender’s Perspective | SBA Rules & Financing Challenges
15:20 Real-World Examples of Customer Concentration Problems
19:45 Deal Structures Buyers Use to Manage Concentration Risk
23:50 Strategies for Sellers | Reducing Concentration Before Exit
27:15 Industry Concentration vs. Customer Concentration
30:40 Switching Costs & Customer Stickiness Explained
34:20 What If a Business Has Only One Customer?
37:50 How Customer Concentration Affects Business Valuation
41:30 Risk Mitigation | Earnouts, Seller Financing & Holdbacks
45:00 Long-Term Solutions for Buyers and Sellers
48:10 Final Thoughts | Why Diversification Protects Business Value
49:30 Resources for Buyers & Sellers | BusinessBuyerAdvantage.com
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David C Barnett Small Business and Deal Making M&A SMBBy David C Barnett

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