If looking to avoid business branding suicide, steer clear of the following at all costs:Copying Ideas – It doesn’t matter how subtle you try to be, you will get caught, look like a fool and maybe even end up in court. Complicate Things – Most brands are one or two simple words for a reason.Try to Be Cool – You can’t change your brand every six months to fit in with the times and trends, so always opt for timeless simplicity.
In 1906 Vilfredo Pareto made an observation, that 80% of the land owned in Italy was possessed by just 20% of the population. Later on, whilst he was gardening, he observed that 20% of his pea pods contained 80% of the peas he harvested. Here, the Pareto Principle was born. Following this, many others discovered this phenomenon in their own disciplines. Dr Joseph Juran, recognized that this principle could be utilized generically and referred to the theory as the “vital few and trivial many”.
According to Dr Juran, 20% of the tasks are always responsible for 80% of the results, and we can use this in a business model as follows:
80% of profits come from 20% of clients.
80% of profits come from 20% of the time spent.
80% of profits come from 20% of goods.
80% of complaints come from 20% of clients.
80% of matters are trivial and 20% are vital.
80% of sales come from 20% of goods.
80% of production comes from 20% of staff.
80% of sales are made by 20% of sales staff.
So according to the Pareto principle, those who do not follow this principle are simply wasting 4/5 of their resources on “the trivial”, and could be achieving more, by doing less (as Richard Koch neatly puts it). So surely, one should not be wasting the majority of their time pursuing the trivial? No, in order to save input (time, energy, money) without hindering output (results) one must identify the 80% of less productive input and minimize it.
The application of this rule to the business model, and indeed, everyday life will no doubt ensure that you and your company and operating at productive efficiency. For example: 20% of you time spent revising will ultimately account for 80% of your result. This theory has also been applied to: economics, where 20% of the population generates 80% of GDP; in software, where 80% of computer crashes are caused by 20% of bugs; in health and safety, where 20% of hazards are responsible of 80% of injuries; and in crime where 20% of criminals commit 80% of the crimes.
Now, the ratio of 80-20 is not always constant, meaning that instead of a ratio of 80-20, it could be 63-37, or 95-5. All we know for sure is that the integer for output (80) will lie between 50 and 100 and the number for input (20) is between 0 and 50. Remember this and hopefully by utilizing the Pareto Principle you can flourish your business and take full advantage of your potential.
Should you be a small business owner who might be worried about revenue and growth, branding needs to be your number one target. These days, branding businesses may be divided into a couple of levels; physical branding and Internet branding. Physical branding refers to a persons genuine perception of your service or product in everyday living, for example, signage, standard marketing, and neighborhood involvement. Internet branding is exclusively your existence on the web, for example, internet site, social networking, and optimization. Both involve some likeness pertaining to ways to improve your brand and boost revenue, however they are different.
