Landing a major corporate contract can feel like a breakthrough for a growing business. Suddenly, there is consistent revenue, room to expand and the confidence that comes with knowing a big player believes in what you offer.
But what happens when that one client becomes the reason your business stays afloat?
For many South African entrepreneurs and growing businesses, securing a major corporate account is a milestone worth celebrating. However, relying too heavily on a single customer can turn a success story into a financial vulnerability. The challenge is no longer simply winning big contracts. It is building a business that can survive without depending on any one of them.
In an increasingly competitive business environment, that distinction could determine who grows sustainably and who struggles when circumstances change.
The hidden danger behind a successful contract
Customer concentration risk occurs when a significant portion of a company’s revenue comes from a small number of customers.
It is a situation that can develop gradually. A business wins a lucrative contract, builds its operations around that relationship and begins treating the income as a dependable part of its future.
The problem emerges when that relationship changes.
A corporate client might restructure, reduce spending, renegotiate pricing or move to another supplier. For a business that depends heavily on that account, the consequences can extend beyond lost revenue, potentially affecting salaries, operations and future investment.
According to business coach Hayden Lamberti of Grow, international financial reporting standards recognise the significance of this exposure. IFRS 8 requires listed companies to disclose when revenue from a single customer reaches 10% or more of their total revenue.
For smaller businesses, where one customer can represent a much larger percentage of turnover, the warning deserves even more attention.
Why winning one big client isn’t enough
One of the biggest challenges facing growing businesses is that their first major contract often comes through personal connections rather than a structured sales strategy.
Perhaps the founder knows someone in procurement, or an existing relationship opens the door to a corporate opportunity. The contract is secured, but the business has not necessarily developed a repeatable way of attracting similar customers.
When it is time to win the next big account, the process starts almost from scratch.
Lamberti highlights how corporate sales can become expensive and time-consuming. The 6sense 2025 B2B Buyer Experience Study puts the average buying cycle at 10.1 months, with multiple decision-makers often involved in a single transaction.
That means months of meetings, presentations, negotiations and administrative work, frequently involving senior management.
Even then, there is no guarantee of success. Research by Matt Dixon and Ted McKenna, featured in The JOLT Effect, suggests that 40% to 60% of deals are lost because customers ultimately decide not to act.
For entrepreneurs already balancing operations, cash flow and growth, that is a significant investment of time and resources.
Stop waiting for tenders. Start creating opportunities.
One of the more important shifts in Lamberti’s approach is the idea that businesses should not wait until a corporate tender or request for proposal becomes available.
By that stage, potential suppliers may already be competing against established favourites.
Instead, businesses should identify decision-makers before a formal buying process begins. This means understanding the challenges facing a particular organisation and demonstrating how their offering can solve a meaningful business problem.
It also requires speaking to the right people.
Corporate executives are generally concerned with business performance, profitability, risk and the time it takes to see results. Leading with product features alone can leave smaller suppliers stuck competing on specifications and price.
The stronger approach is to demonstrate business value and build relationships with people who have the authority to influence decisions.
Building a business that doesn’t depend on luck
Lamberti recommends several practical changes for businesses looking to win larger contracts more consistently.
These include identifying corporate targets strategically, developing relationships with senior decision-makers and establishing an executive sponsor who can support the opportunity internally.
He also suggests starting with smaller commitments, such as measurable pilot projects, rather than immediately asking a corporate client to approve a large contract.
Businesses should also prepare for procurement, legal, finance and security requirements early in the sales process instead of treating them as last-minute obstacles.
Importantly, entrepreneurs should not overlook existing customers. Expanding an established relationship can often be more straightforward than convincing an entirely new organisation to do business.
Growth is about having options
For South African entrepreneurs, securing a major corporate contract can open doors that once seemed out of reach. But sustainable growth requires more than landing one impressive deal.
It requires building relationships, systems and sales processes that consistently create new opportunities.
As Lamberti’s argument suggests, the real measure of business strength is not simply how much revenue one customer brings in, but how well the business can withstand losing that customer.
A successful business should be able to celebrate its biggest client without becoming dependent on it.
Because true growth is not just about getting bigger. It is about building something resilient enough to keep moving forward.
Hayden Lamberti is a business coach at Grow, where he works with South African business leaders on strategy and growth. He previously held leadership roles at AlwaysOn, NTT and Internet Solutions.
