Firing Clients
It may sound like business blasphemy, but it could be the best thing for your business.
By Robert J. McGarvey •
Opinions expressed by Entrepreneur contributors are their own.
You know the Pareto Principle: Eighty percent of the wealth is in the hands of 20 percent of the population, says this law put forth by 19th century Italian economist Vilfredo Pareto. Later adapted into the context of inventory management by renowned quality management expert Joseph Juran, the principle is also known as the 80/20 law, and salespeople in particular use it to proclaim that the top sellers get most of a company's results. But there's another side to the Pareto Principle, one a homebased entrepreneur had better digest-or suffer the consequences.
Your worst clients are destroying your business. They're demanding 80 percent of your time and energy and producing only 20 percent of your profits.
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