Pareto’s Principals For Turnarounds

Pareto’s Principals For Turnarounds
One of the most valuable tools I utilize in turnarounds is the pareto 80/20 principal. It never fails that 20% of units or services accounts for 80% of sales. With this knowledge one can focus on either making the 80% of revenue profitable through raising prices, eliminating costs associated with that revenue or just dropping the products and downsizing to core revenue. However thats where companies run into trouble as they need to break leases, renegotiate debt , etc. Capital is often the missing linchpin for completing the turnaround. When you search for capital make sure you are dealing with investors and lenders that understand the golden 80/20 Rule.