Dear Nova,

In 1896, Italian economist, Vilfredo Pareto looked at Italy and saw that 80% of the land was owned by 20% of the people.

Surprised at this relationship, he looked at his garden and saw the same relationship. 

20% of his plants, produced 80% of his fruit.

Pareto, curious to see if this was just a coincidence looked even further and saw this same ratio expressed again and again.

80% of the money was in the hands of 20% of the people,

80% of the crime was done by 20% of the criminals,

20% of a person’s wardrobe was worn 80% of the time,

Etc. Etc.

Eventually this discovery became known as the 80/20 Rule (also known as the Pareto Principle), which states that 20% of inputs are responsible for 80% of outputs.

In layman’s terms, this means a small percentage of inputs/causes are responsible for nearly all outputs/effects.

And while this relationship is not only very present within our lives, it is also extremely common within our businesses.

If you look at your company you may be surprised to find out that…

80% of your company’s revenues are generated by 20% of its products,

Or 20% of your company’s website pages attract 80% of its overall traffic,

Or 20% of your company’s salesman produce 80% of your company’s sales.

And while there might not be an exact relationship within your business, where 20% of the inputs produce 80% of your outputs, there is almost certainly a relationship where a small amount of effort causes a large amount of results.

Most likely there is a percentage that’s smaller than 20% of your inputs, that is responsible for more than 80% of your company’s outputs.

In fact today, many people argue that the 80/20 rule is no longer accurate and a 90/10 relationship or 95/5 relationship is more realistic.

However, if the 80/20 rule is true, then there must be the 80/20 rule within the 80/20.

Meaning that for the 80% of results produced, 80% of those results come from 20% of the 20% of inputs.

Meaning that 64% of your outputs come from just 4% of your inputs.

And if that’s true, then there must be the 80/20 rule within the 64/4 rule.

Meaning that within your business 51.2% of your outputs come from just 0.8% of your inputs.

Yes, you heard that right.

Somewhere within your business there is essentially 1% of your inputs that is responsible for 51% of the money you make. 

That’s absolutely crazy.

But what’s even crazier is when you are able to identify that 1% within your business and really focus on it, because by doing so your business will explode.

And by focusing on this 1%, this is how one can grow their business more in a month than they have in the past 3 years.  

We’ve seen this happen a countless number of times within the companies we work with.

There just scraping by, struggling to grow, but once we help them focus on that 1% that makes up 51% of their results, we can double, triple, even quadruple (or more) the company in just a matter of days. (I don’t even want to say this because this sounds like a lie, but yes days.)

So, the point of this article is to share with you the lesson that if you want to grow your business fast you should always be looking for that 1%.

Because that 1% within your company, wherever it is hiding, is responsible for 51.2% of the money you are making!

We hope you enjoyed this article, and if you have any comments, questions, etc. please feel free to reach out to us.

And if you want us to help you find your 1% and take your business to the next level, then we can also help you with that!

Thank you for reading and we hope you have a wonderful day!

— Supernova