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Productivity & Mindsetbeginner

Pareto Principle

Definition

The 80/20 rule, 80% of your results come from 20% of your efforts, customers, or products. Identifying and doubling down on the vital 20% is the highest-leverage move in any business.

Why it matters

Most founders spend equal time on everything. The Pareto Principle forces the uncomfortable question: which 20% of my activities are driving 80% of my results, and what should I cut?

Example

You analyse your revenue. 3 out of 18 products account for 80% of sales. Logically: focus all marketing on those 3, discontinue the 12 worst performers, and simplify your entire operation.

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