Revenue Volatility: Losing a key customer can lead to significant revenue loss. Negotiation Leverage: Customers may demand better prices or terms, knowing their importance to the business. Cash Flow Issues: Dependence on a few customers can lead to irregular cash flows. Market Vulnerability: Changes in the customer's industry or business can directly impact your company. Operational Risk: Over-reliance on a few customers can lead to operational inefficiencies if their demands change.