You will need to analyse your business product by product and division by division to eradicate low gross margin areas, either by working on the cost of goods side or, perhaps, by removing some product lines or activities. This could take considerable time.

Reliance on a few major customers

It will usually be a long-term project for a business to broaden its customer base. Where the total market is confined to a small number of customers this problem cannot be remedied, but even where other customers exist it can be remarkably difficult for an established business to undertake the cultural changes that might be necessary in finding new customers.

Reliance on too few products

A business that relies on too few products for the majority of its sales is highly vulnerable to changes in taste, fashion and attitudes as well as advances in technology, loss of patent protection and/or changes in legislation. As with reliance on too few customers, having too few products puts sales, profitability and associated business value at severe risk.