All business growth is not valued equally

You've likely heard the adage that it’s far easier to cross-sell an existing customer a new product than it is to find a new customer. And if your goal is to grow at all costs, then cross-selling makes sense.

However, all of that sales growth may not do much for the value of your company. If you cross-sell your existing customers too much, it could make your business far less valuable.

When you cross-sell a customer so many products and services that they begin to account for more than 15–30% of your revenue, expect your value to drop. If a single customer represents more than 30% of your sales, expect an even deeper discount.

Customer concentration is one factor that makes up your score on the ValueBuilder assessment — it’s one of eight drivers that’s behind the research determining your business's value in an acquirer's eyes…