80/20 Rule Is 80% Accurate 20% Of The Time
The Toilet Paper Entrepreneur:
Are you familiar with the 80/20 Rule, often referred to as Pareto’s Rule?
Vilfredo Pareto, an Italian economist in the 19th century, was directed by the King of Italy to determine the distribution of the country’s wealth.
Through Pareto’s tedious analysis he determined that 20% of the Italian population controlled 80% of the country’s wealth. Likewise, 20% of the country’s wealth was controlled by 80% of the population.
This observation can be applied to many facets of business and life. But buyer beware, this formula doesn’t apply all the time.
Here’s where the 80/20 Rule often works:
* 80% of the time you wear only 20% of your clothing. That’s a lot of clean shirts sitting there, unused. Hopefully your undies get a little more rotation.
* 80% of your revenue comes from 20% of your customers. Check out your accounting, you may be surprised to find this true. […]
Original post by Rich and software by Elliott Back