Pareto’s Principle, named after Italian economist Vilfreod Paretor, states that, for many events, roughly 80% of the effects come from 20% of the causes.
Put simply, 80% of ‘the good’ comes from 20% of ‘the best’. It’s a handy guide to keep small business alert to all manner of things within and about their business.
So, what are you going to do to the risks Paretor’s Principle can reveal to you if you lose ‘the best ‘20%’. Here are some thoughts.
- 80% of your income comes from 20% of your customers;
- 80% of your income comes from 20% of your products and services;
- 80% of your supplies come from 20 % of your suppliers;
- 80% of your completion comes from 20% of your competitors; and more
If you need more information , please contact me. Graham Long Apr 2023