Revenue Concentration Risk

Overview

Measure how dependent your business is on a small number of clients. Calculates each client's revenue share, computes the Herfindahl-Hirschman Index (HHI), and flags dangerous concentration levels.

Wilson Tools Used

• transaction_search — find all revenue transactions and group by client or source to calculate per-client totals

Workflow

1. Ask for the analysis period (recommend 12 months for accuracy).
2. Use transaction_search to find all incoming payments (positive amounts).
3. Group by vendor/payee name to get per-client revenue totals.
4. Calculate each client's revenue share as a percentage of total.
5. Compute the Herfindahl-Hirschman Index: HHI = sum of (each client's market share percentage squared).
6. Generate the report: