CFO Edge Logo
  Home > Resources > Customer Base Diversification Article  
     
 

Why You Need to Diversify Your Customer Base

 
  Sherry Rahbar, Partner, CFO Edge, LLC  
   
  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
  Article Summary  
We're all familiar with the importance of diversifying an investment portfolio to, for example, mitigate the impact of one stock's or one sector's price fluctuations.

Similarly, in order to reduce risks of doing too much business with one customer, it is critical to understand why you need to diversify your customer base, as well as to know the right strategies for addressing an imbalance.

Discussed in this article are ways by which excessive customer concentration can generate four downsides.

Suggested rebalancing and risk mitigation steps are accompanied by a description of three positive outcomes.

An on-demand CFO services professional applies his or her expertise to first assess concentration levels in your current customer base and link that information with financial risks.

Customer base balancing strategies are then recommended. For example, guidance may be provided to adjust business development activity to target prospects, products or other segments that will better balance your customer base.

  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
Subscribe to CFO Inside Edge

Our monthly newsletter delivers first notice of new white papers and articles plus remarks on performance challenges and solutions. View past issues and subscribe.

 
 
 
CFO or Controller: What's Right for Your Business?
White Paper
CFO or
Controller:
What's Right
for Your
Business?
Outsourced CFO Services
White Paper
Outsourced
CFO Services
Performance Measurement
White Paper
Performance Measurement
Strategic Planning & Forecasting
Brief
Year-End Strategic Planning & Forecasting
Planning a Business Exit White Paper
White Paper
Planning a
Business Exit
 
CFO Edge Blog CFO Edge on Twitter CFO Edge on LinkedIn
 
Intuit Certifications