Thursday, 3 January 2008

It’s all in the numbers!

If you are reviewing the performance of your business or trying to grow it there is one simple tool that can be applied to any business in a number of ways.

It’s called the Pareto Principle (aka "the 80/20 Rule")

80% of your business will come from 20 % of your customers.
80% of your profit will come from 20% of your products/services.
80% of your problems comes form 20% of your customers.(they are often the 20% of customers who are problem payers.

So the trick is to apply effort where it will have the most effect!

More of this in a later post.

Alan Briggs

Dynamic Business Strategies Ltd
Tel: 07917 446068


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