Archive for September, 2010

Small Business Sales – The Year 1906 and Your Business

Friday, September 17th, 2010

I was going through some old files today and came across something that I think needs to be mentioned, again!

I say again because this is not a new concept as a matter of fact a guy named Vilfredo Pareto germinated the idea way back in 1906.

But it was not Vilfredo that made his “80/20” famous it was actually Joseph M. Juran. He was a business consultant of course. Mr. Juran applied Pareto’s idea to business and coined the phrase “The Pareto Principle”.  That was the start of 80% of your business comes from 20% of your customers. Since then it has been applied to everything business and then some. What’s amazing is how accurate it is.

I was coaching a young man a number of years ago that was in sales. He wanted to know how to make more money. I asked him to bring his account list with him to our next meeting. He had almost 300 accounts that he was responsible for. I told him that he needed to figure out who is top accounts were and who the up and comers were and then go tell his boss that he wants to give up the rest.

Of course he thought I was nuts, and when he told his boss, the boss thought he was crazy. But long story short his income went up 2.6 times over the next 12 months!

The point is he was wasting all of his time with accounts that were not where his money was coming from. By getting rid of the detritus and focusing on the accounts that actual bought from him he made a lot more money.

Sounds easy doesn’t it? I guarantee it’s not it goes against your nature to give up what you think is business. So your homework is to go analyze your accounts or your customers or clients and do some trimming.

I add some more about this business-building concept soon.

Now go sell something,