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Category: Pareto Principle

The Pareto Principle for Profit Improvement

The Pareto Principle (also known as the 80-20 rule) is named after an Italian economist named Vilfredo Pareto. While this principle can apply to many areas of business, let’s look at two possible applications in your small business: Possibility 1) 80% of your profits come from the top 20% of your customer base. Possibility 2) 80% of your custom... Continue reading