A warm greeting to you out there. I hope you are enjoying our success series. Just before we proceed to today’s point of discussion, I will like to apologize for the delay in the post. We have been doing some work lately on this page. Kindly bear with us. Lets look at the 80/20 rule
Today, I am going to be sharing an important principle with you. Personally, I have used this principle across different fields and it has worked. If success means anything to you at all, you may check out this principle. It will help you to focus more on what can give you more. Isn’t that great and worth considering?
The principle is called Pareto principle. Does it sound familiar? If you have been reading a whole lot, I guess you must have come across it. If you know it but haven’t been taking it seriously then its time you do. This can be the difference between success and fruitless efforts. Let’s go into it.
What Does Pareto Principle Mean? Pareto principle states that eighty percent (80%) of your output comes from twenty percent (20%) of your input. In business terms, eighty percent (80%) of your profit comes from twenty percent (20%) of your customers. Remarkable isn’t it? Let’s talk about it in figures, it means if you have 100 customers, twenty of them will give you eighty percent (80%) of your profit. The remaining eighty customers will give you the other twenty percent profit. This is also called 80/20 rule.
What You Can Do With It
Think about it, if you understand and work by this principle, it means you can get a lot more done, get more profit etc. All you need to know is 20% that will give you 80% and then do more with it. Instead of waiting resources on all of the 100% and getting little, just get the 20% that will get you the 80% of the result you want. I hope that makes sense to you.
Question To Ask
This principle was an eye opener for me as well when I learnt it few years back. I found out it played out in everything. Even with my friends list, my time usage etc. It just played out in everything. If that sink very well, the question you should be asking now is “how do I know this 20% of my customer that gives me 80% of my profit?”
In our next post, we shall be looking at few ways to get the 20% work more and then get 80% return over and over again. If you have enjoyed this piece, kindly leave a comment in the comment box. I look forward to hearing from you.