Understanding The 80/20 Rule for Small Business

By jason on Jul 14, 2011• 6 Comments
Understanding the 80-20 Rule 10-27

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  • http://www.KevinKruse.com Kevin Kruse

    Like most serial entrepreneurs I’m obsessed with time and efficiency, so I’ve been a big believer in the power of Pareto’s principal.

    In the real world it’s a little more messy. For example, at Zynga it’s the 100/10 rule–10% of their customers generate 100% of their revenue, and the 50/1 rule–1% of their customers generate 50% of their revenue. But the idea of focusing time and resources into the areas that yield the most returns is golden. And I’ve known some business owners who have just fired 80% of their customers so they can focus on serving the 20% who really matter.

    Great infographic, well done.

    Kevin Kruse
    Author, NY Times bestseller We: How to Increase Performance and Profits Through Full Engagement

  • Will Good

    I’ve never seen this 80/20 theory before. Looks like it can be very powerful. I think you gave my reality a poke in just the right spot :D Excuse me while I go completely reevaluate my time.

    Thank you!
    Will
    http://willgood.net

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    Another tip from Raleigh Carpet Cleaning to a clean carpet is to do a spot
    check of your carpet. A soon as a spot or stain is spotted, take care of it
    swiftly. Most spills or stains can be taken care by simply rubbing a wet fabric
    on the area. If a stain or spill doesn’t come up with just water, try adding
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  • http://www.diigo.com/user/oscarousley Brian Pearce

    This post was very nicely written, looked after includes a lot of useful facts.Wow!, this was a high quality post.

  • http://weblinkr.com/dorothysimmons12 Wanda Paris

    Outstanding work once again! I am excited for your next post!

  • Liz L.

    Very nice infographic!