Discover How Pareto's Law Can Help Your Business

Hello %%First Name%%

Vilfredo Pareto was an Italian economist and political sociologist who lived from 1848 to 1923. He discovered what is best known as the 80:20 rule. I wanted to show you how this rule can save you time, effort and money in your business.

He may have lived 100 years ago, but his discovery is probably one of the most fundamental rules you should run over your business on a regular basis.

When applied to business activities it says that 80% of value of those activities can be achieved from just 20% of the effort. The remaining 20% of value comes from 80% of your effort and on which you are not getting much of a return.

It is surprising just how often this law seems to apply in all sorts of business activities. The results may not always be exactly 80:20 but are usually not that far off.

Let's look at a few examples of where this may apply in your business...

• 80% of your sales come from 20% of your customers
• 20% of your sales force create 80% of your sales
• 80% of your employee problems are caused by 20% of your employees
• 20% of your stock lines give rise to 80% of your profit
• 80% of your website search traffic comes from 20% of your keywords

Pareto's Law can help to identify the 20% that most of your effort should be concentrated on. You may not even need the other 80% at all. Consider if the extra 20% you get is worth 80% of your input. Often you will discover it is better to nurture and build on the strengths of the 20%.

It can be a very useful law for identifying where you can make the biggest changes in your business. It allows you to set priorities and invest in the areas of your business that make all the difference. It really can be the difference between success and failure.

So take a look at your business and see where the results are coming from and concentrate on those areas.

Of course, an accountant is very useful for helping you identify the key areas to look at and to help in measuring.

To discuss this or for any of your accountancy and tax needs, please give me a call. I'm very happy to visit you without charge for a consultation to discuss how we could help you further.