It’s easy to believe that more is better when managing a business. This is not always true. Quality is more important than quantity in most cases. Businesses don’t necessarily want quantity, but this isn’t to say they don’t. To grow a business, you need to have enough. This blog focuses on how to build a solid foundation. From there, quality can be achieved in areas such as leads, sales, and profit.
The Power of Quality in a World of Quantity
Vilfredo Pareto, an Italian economist, observed that 80 per cent of Italy’s land belonged to 20 per cent of the country’s population. This was just over 100 years ago. Vilfredo Pareto found this idea fascinating and continued to research it. He discovered that the principle holds in virtually every free-market economy. The market’s wealth is always concentrated in the hands of a few people.
Many outstanding thinkers and researchers have proven this principle to be true over the years. This principle is so widespread that now calls it the 80/20 Rule (or “Pareto Principle”)
You’ll find this almost universal truth in business:
- 20% of the revenue comes from products/SKUs.
- 80 Percent of productivity and output come from 20 per cent of employees
- 20% of the issues are responsible for 80 per cent of all problems
This list could go on. The point is simple: Small inputs can lead to big results. It’s not about having more products, employees, revenue or storefronts. Understanding and embracing the most important inputs to your business will have the greatest impact on the results. It is all about quality and not quantity.
These are just a few examples of how this principle works in real life:
Qualitative clients require fewer resources.
Kevin Kelly, an entrepreneur, wrote a business essay titled 1,000 True Friends 15 years ago. He explains a simple but profound idea in it.
Quality products, more value
Let’s see if you can answer this quick question: Which diamond is more valuable? Is it a larger diamond with visible flaws to the naked eye or a smaller diamond with a grade without visible flaws?
It is easy to answer: The smaller diamond. Why? Because it is better quality. Quality is more important than size. Customers value size and quality more than quantity. A smaller bag of potato chips will be more popular than one that is larger and doesn’t taste as good.
Focus on quality products and services to build a successful brand. All other aspects are secondary to this objective. Your brand’s reputation for excellence in all you do will increase, and customers will leave reviews and refer others. Organically, your business will grow, as well as the number of sales generated by loyal supporters and advocates.
High-Quality Products with Less Customer Service
20% of your products/features are responsible for approximately 80% of customer service issues. These are generally your lowest-quality products. This will reduce the number of service calls and allow you to focus on high-quality products. Customers can spend their time improving pre- and post-sales procedures and decreasing cart abandonment. This will help increase sales.
Lower Stress, Higher Quality
Quality investment means less stress for business owners, managers, and CEOs. Quality is a foundation for your business. You don’t need to worry about the many problems most businesses face (e.g. customer service and supply chain issues).
Add It All Together
Do you want to build a successful business in today’s environment? Do not feel the need to do more. Instead, adopt a quality-first mentality. This will prioritize the 20% of inputs that produce 80 per cent of outputs. This is where you will see real growth and will soon have quality products, services, and sales.