Search
  • Manish Kapur

20% Of Businesses Will Emerge Stronger After The Crises

You are probably familiar with Pareto’s 80/20 principle. It is an extremely powerful yet simple rule that is often applied to many aspects of business. Typically, it says that around 20% of your customers will deliver about 80% of your revenue and profits.

Applying this principle to our current situation, it is probable that after the crises, 20% of Small and Medium-Sized Enterprises within a given marketplace will deliver 80% of the revenues and profits within that market.

Sadly, some businesses have already been casualties and have gone into administration or closed their doors for good.


Those who have survived really have 2 options from here:

1) Cut back on all costs, stop marketing and take up the Government support measures available. They will effectively mothball their businesses until the crisis is over or at least until some sense of normality returns.

2) See this as an opportunity rather than a crisis. Business owners who choose Option 1) will have their own good reasons for doing so. Their companies may still survive but will almost certainly be worse off after the crises. They will have much ground to make up when they start trading again.


However, we’re already starting to see business owners who are adopting Option 2). These are the entrepreneurs who want to face up to this adversity and are reacting with positive and bold actions. They are taking their own measures which will put them ahead of the curve and will lead to a secure long-term future for themselves, their businesses and their families.


These companies will make up the “20%”.

2 views0 comments