Are You an 80/20 Entrepreneur?

May 14, 2014 at 1:52 PM

What is it?

“The 80/20 Principle, also called “Pareto Principle,” asserts that a minority of causes, inputs or effort usually leads to a majority of the results, outputs or rewards.  Taken literally, this means that for example, 80 percent of what you achieve in your job comes from 20 percent of the time spent.”  The 80/20 Principle

In a clever book on the 80/20 topic, author Richard Koch writes this: “ Most of the time we do not realize the extent to which some resources, but only a small minority, are super productive – what Joseph Juran called ‘the vital few’ – while the majority – ‘the trivial many’ – exhibit little productivity or else actually have negative value.”

Individuals and businesses are taken captive to the natural organizing principle of 80/20 rule when they remain unaware of the sheer power of these unseen forces.  This principle works fantastically well for us or insurmountably against us.  And, you get to decide which!

In business

20 percent of products usually account for 80 percent of dollar sales volume; and 20 percent of customers.  80% of your effort yields 20% of the results! What if you could flip this – 20% effort yields 80% results!

In the home

20 percent of your carpets are likely to get 80 percent of the wear; twenty percent of your clothes will be worn eighty percent of the time.


Entrepreneurs, by nature, wear many different hats, sometimes changing by the minute and certainly by the hour and day.  There is a keen observation at hand here – successful entrepreneurs and how 80/20 works for them or against them, their teams, and their ventures. 

If you are unconvinced or see this as trite, read Richard Koch’s entire book to learn how major corporations utilize Pareto Principle throughout their organizations and with their people for grand outcomes.

To understand that there is one shift, one sure bet we all can make to move closer to our vision of realizing success, is compelling. 


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