And the couple of customers that know our size have indicated it's better to appear large. For example, you wouldn't switch a company from using Microsoft Exchange to something else if that something else was run by a couple of guys. Our company would be in very deep trouble if something happened to me. To balance that, customers get updates and fixes very fast because they work with such a small company.
I'm curious as to what you tell a potential customer if they just ask you directly how big your company is? "It's mostly just me..."? Do you just hope that they don't ask that question?
Personally in this market having a business run by a single person is probably these risky than a small team since the chance of bankruptcy is less.
It is wise to hide his small size from companies he sells to. I have seen countless stories that large companies act like bullies and take advantage of small companies on a routine basis.
That may not be what he was thinking. But it is in his own best interest.
Not sure about your customers, but if I was a customer of some product I'd be happy to know they're are doing well :)