Anyone that’s ran a business before or been involved in management will have come across Pareto’s Principle at some point.
It’s the principle that says that 80% of your results come from 20% of your effort. An example would be having a look at your client list and seeing where your revenue comes from. Most businesses get 80% of their revenue from 20% of their clients. This allows businesses to really tailor their product or service for their biggest fans, thereby maximising profits.
The “80 20 Law”
Well as a startup, this principle is a load of rubbish!
As a startup you must realise that 100% of your results will come from one thing you need to do. There is one thing that you need to do right now to get your startup going.
Let me say that again! Even if you’re only at the ideation phase and have no clue how to execute it, realise that there is one thing that you need to do right now that will make your idea become a reality.
Say for example you wanted to make a new computer mouse. It is well known that no single person can build a computer mouse themselves – you need a software guy, a hardware guy, someone to look at the ergonomics, branding, packaging, shipping, sourcing materials etc etc.
You shouldn’t look at that list of things and decide it’s impossible. Your job as an entrepreneur is to bring people from different fields together and lead them. And there will be one thing that an entrepreneur wanting to build a new computer mouse could do to start this whole process. Your job is to figure out what it is!