Customer concentration data for small businesses

It really depends on the business model and industry. I've seen manufacturers that built an entire business around providing three parts to Apple. Then a B2C business is going to have a very different customer profile. Ask yourself what the customer profile looks like relative to the industry they serve. For example, government contractors, aviation, B2B automotive, large pharma manufacturers, etc, all probably have higher customer concentration because the number of potential buyers are large in size but small in number. Manufacturers selling to wholesalers or distributors probably have high concentration.

This is fairly common depending on the business - for instance if it’s a large project based business doing <$5M in revenue you will have natural customer concentration. The question you need to understand is why is there customer concentration- is it due to seller relationship, are there high/low switching costs ? Once you get comfortable with the why lenders can too