80-20 Rule
Categories: Company Valuation, Education, Financial Theory
As a general rule, 20% of a company's clientele is responsible for 80% of its revenues. Like...there aren't 100 people walking into your shoe shop and each buying a single pair of shoes. The vast majority of footwear is purchased by Mr. Fleetfoot, the Olympic runner, and Old Miss Blaversham, who's emulating Imelda Marcos and hopes to one day own an entire house just for her shoes. And about 18 other shoe fanatics...while the other 80 are just buying a pair of sneakers every five years after their old ones get too ratty.
