The 80/20 Principle

March 13, 2022

The 80/20 principle (or Pareto’s Law) states that 80% of your results come from 20% of your inputs.

  • This law is universal and applies to everything, from having a musical hit to the size of cities. In relation to your business, simply put, it means that 80% of your profit is being generated by 20% of your inputs - customers, staff, and products.
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  • It also means that 80% of your headaches and problems are being generated by 20% of your inputs - customers, staff, and products.
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  • To maximise your profit you must know your 80/20. If you don't know  your 80/20 you are just dancing in the dark.