The Pareto Principle
In 1906, Vilfredo Pareto observed that 80% of the land in Italy was owned by just20% of the population. Later formalised by quality management consultant, Joseph Juran, as Pareto’s Principle, the 80-20 principle conveys the powerful, and sometimes, frankly disconcerting reality that a minority of inputs often account for the majority of outputs. This presents a spanner in the works to the expectation in our day-to-day lives of incremental effort generating incremental value.
This law of the vital few has stood the test of time in a wide array of disciplines, from biology, to economics, to information technology, to infectious diseases. Beyond the well-documented statistics surrounding wealth inequality, think about this:
- In occupational health and safety, 80%of the injuries are caused by just 20% of the hazards
- In major league baseball, 85% of wins are produced by 15% of the players
- During the COVID-19 pandemic, 80% of the deaths occurred within just 20% of the population (for example, those aged over 65 or with chronic health conditions)
- It’s likely that 80% of your phone usage is done through a mere 20% of your apps while the rest lie practically ignored
Astute business managers know how this 80/20 principle applies to their business and use it to their advantage to maximise productive output. They use the Pareto Principle to leverage their best inputs and redirect effort and resources towards the things with that yield the greatest fruit.
Fundabl understands that managers must have a laser focus on their business operations and need to invest heavily and swiftly in the projects that create the most value. We want you to quickly capitalise on these opportunities that will deliver immediate value, so we created a fast funding solution that places funds directly into your hands to give you certainty and the ability to realise the 20% of goals that generate 80% of your revenues. Our capital is non-dilutive, fast and simple – a founder friendly offering, at last!
