80/20 Business Rule Recap….what you’ve been forgetting!
April 2014
Oh Pareto, how after all these years you still get it! And how quickly we as entrepreneurs forget! Here’s a brief lesson of the 80/20 rule: In the 1900’s Italian Economist and Sociologist Vilfredo Pareto observed that about 80% of Italy’s riches belonged to only 20% of the population. He took his observation one step further by generalizing that most things in life (effort and output mainly) are not distributed evenly – some contribute more than others.
In business, the same is true. Remember:
● 80% of your sales come from 20% of your products
● 80% of your profits come from 20% of your customers
● 80% of your complaints come from 20% of your customers
● 80% of your profits come from 20% of your time spent
● 80% of your sales are made by 20% of your sales staff
This helps give a clear view of what needs to be looked at, analyzed and tweaked! What are the characteristics that are needed to bump that 80% into the rockstar 20% category? What are key traits to tilt the odds in your favor?
Remember observation and acknowledgement are the first steps….
Find out how you can master this golden rule here
-Scott, Alchemic Empowerment
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