The Pareto Principle is a rule of thumb that 20% of the effort brings 80% of the result, and the remaining 80% of the effort only brings 20% of the result. This gives a 16 times difference in efficiency. If you can apply the Pareto principle to your company, it will allow it to make a leap forward in development.
The Pareto principle is very universal and it is more or less true for all areas of business: 20% of employees do 80% of the work, 20% of customers bring in 80% of the money, 20% of goods give 80% of the profit, and so on. Analyze your business carefully and focus your efforts and resources on more profitable operations.
Look at the services that are easiest to provide. Do they lose in profitability when you consider the fact that they do not need expensive highly qualified personnel, long training and narrow specialization of employees?
The Pareto principle can also be applied to reduce costs. Determine where you spend the most money. This is far from always possible, but try to reduce the consumption of the most expensive goods and services or negotiate other conditions for their purchase.
