How Firing Troublesome Clients Can Increase Gross Revenue

Firing Bad ClientsFor a long time, it’s been a business rule that you should never tell a customer “no” and that the customer is always right. We have grown into an age where businesses no longer feel that that is true. In fact, telling certain customers “no” and sending them along their merry way to another business is sometimes to the best thing that you can do for your company. The reason for this is because of the 80/20 rule, also known as Parato’s law.

What is Parato’s 80/20 Law?

If you have never heard of the 80/20 rule that is commonly used for business and life, it is a logic that is put to use that can help you better see the more important areas of your life. The rule states that 20% of your input makes up 80% of your output. In business, this translates to 20% of your efforts make up to 80% of your outcomes, or 20% of your customers make up 80% of your revenue. It can also refer to 20% of your employees providing 80% of your business productivity. [Read more...]