Client concentration risk | HustlingTools

Assess the share of revenue tied to your largest client.

# A good relationship can still create risk
Client concentration measures the share of revenue tied to one client. It does not judge the client; it describes your exposure.

## Measure a consistent period
Divide revenue from your largest client by total business revenue over the same period. Use collected cash or recognized revenue consistently.

## Look beyond the percentage
Consider contract duration, notice periods, payment reliability, and how much capacity the client uses. A percentage alone cannot decide whether to keep a client.

## Create options before you need them
Reserve a little time for prospecting, build a cash buffer, and document work so delivery depends less on constant availability.

## Revisit monthly
Use the Client Concentration Check as a signal to investigate, then pair it with pipeline and cash runway.