Focus your Actions by using the Pareto's Law
Within Small and Midsized businesses, time is a critical commodity due to the limited personnel available to perform all essential tasks required to run a successful business.
Pareto, a 'down-to-earth' statistical scientist (see for more info this Web page) discovered that 70%/80% of problems are created by 20% of root causes (this management theory is also well known as the 80/20 rule). Depending on your type of business, major root causes throttling down your business might be difficult to identify - they might cover topics such as unbalanced inventory, bloated accounts receivables, under-capitalization, difficult/low-profit customers, inadequate marketing techniques, etc ...
It is very important
that you strive to identify such roadblocks (listen carefully to your customers, employees, suppliers, external advisors
- you will be surprised by the little gems that might pop up once in a while) as it might virtually open for you some magic doors that will unlock your profit potential and improve immediately your bottom-line. It is clear that by spending more of your precious professional time on topics identified, putting in place an adequate plan of action(s) and act decisively, you are bound to reap some surprising benefits.
By the Friendly Financial Advisor.
Designed to help Small and Midsized business (SMBs) owners on accounting, financial and business matters impacting their overall profit
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