How to Improve Your Business Results Using The 80/20 Principle

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The resources that we need to make progress as business people are usually not equally distributed and available. That means, we can do all things but usually not at the same time.

With this in mind, it becomes important that we figure out efficient strategies that we can use to How to Improve Your Businessachieve more with less and that is where the 80/20 rule or principle becomes useful and handy.

The 80/20 rule states that for many phenomena, 80% of the result comes from 20% of the effort. The principle has been named after Vilfredo Pareto—an Italian economist who discovered it in 1895.

With regards to our businesses, it means that most of our results will come from selected few activities and this article is meant to show you how you can use this principle to improve your business results by identifying and focusing on those few activities that will make all the difference.


80% of your business revenue will come from 20% of your customers. You need to know who these people are and make them happy customers.

You also need to know that 80% of the complaints in your business will come from 20% of the customers. You need to also know these 20% and critically evaluate if you need them in your business. And if you do, you then have to find ways to accommodate them and address their concerns.

Sales and Marketing

80% of your sales results will come from 20% of the salesmen and the sales activities in the business. Your job then should be to know these 20% sales machines, make them happy and keep them in your business for as long as possible.

Also, 80% of your sales will come from 20% of the marketing activities. And these activities should be the priority of everyone in the business. In fact, anyone in the business that is not heavily sold on or contributing to those activities should be treated as the enemy of your business.

Business Performance

80% of the profits in your business will come from 20% of the company’s efforts. This means that not every product or service that you offer will be a profit driver in your business. You will need to take this seriously.

You also need to recognize that 20% of your activity periods will drive 80% of the results that you get in the business. You, therefore, must know your “profit periods” and squeeze them very hard.

Star Workers

Out of every 10 people that you employ, only about 2 of them will be the stars of your business. These are the people you need to keep close and if possible, make a part of the business.

If you also need to hire, you will need to interview up to 10 people for you to get 2 people who will be a good fit for your business.

Time Management and Productivity

To make effective use of your time in your business, you need to know that it is not everything that will fit perfectly well into your schedule; there is only so much you can do.

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