How do I check whether a sign shop relies on a few national accounts?

Ask for sales by customer over several years and rank them. If a handful of national names account for most of the revenue, you are looking at concentration. Note whether the same names appear each year or the list changes. Large clients that appear one year and vanish the next suggest project work, not a lasting relationship.

Next, learn how the work arrives. National accounts often send work in waves tied to store openings or rebranding. A rebrand creates a burst of orders that may not repeat. Ask what is scheduled ahead and what has been promised in writing. Find out who inside those companies picks the sign shop, and whether the shop is on an approved supplier list.

Check the payment side too. Large clients may pay slowly, and a long wait for money strains a small shop. Look at the accounts receivable ageing and note which names are slowest. Your lawyer should read any supply agreements for terms on transfer or ending the relationship. If the owner agrees, speak to the key accounts yourself. Finally, ask what the owner has done to broaden the base, such as local business work, municipal jobs or repeat small orders. A shop already chasing those has thought about the risk.

Key takeaways

• Rank customers by sales over several years and see how concentrated they are.
• Find out whether the work is steady or comes in waves.
• Check how slowly the big accounts pay and what their contracts say.