Have you ever heard of the 80/20 Rule? It’s also known as the Pareto Principle and it basically explains that for many events – 80% of our results come from 20% of our actions. If you’re thinking about going into business, the sooner you recognize the 80/20 rule the better. Here are some examples of how the 80/20 rule show itself once you’re in business:
- Roughly 80% of your results will come from 20% of your actions
- Roughly 80% of your revenue will comes from 20% of your customers
- Unfortunately 80% of your complaints come from 20% of your customers
- Roughly 80% of your revenue will come from 20% of your time spent
- Roughly 80% of your sales will come from 20% of your products or services
We’ll come back to the 80/20 Rule when we talk about creating great products or services and when we discuss leveraging your time as a maker. But for now let’s focus on the principle that roughly 80% of revenue comes for 20% of customers. I highlight this because after finishing the last two, completely honest and difficult posts, I received some of the most beautiful, supportive comments & emails from our customers. So before I put my story of West Seattle Fabric Company to rest, I wanted to share with you that Our 20%, Our Tribe, Our Raving Fans, Our Cheerleaders were the reason we sustained our business, transitioned with ease and had the courage to move forward. Those loyal fans were truly invested in our success, they still continue to follow our blog, share our tutorials and articles and cheer us on. Many of them use our quilt finishing service and have their children and grandchildren in our classes. And as you can see, I share not only our triumphs but our pitfalls with them because they lift me when I’m down and give me strength even from afar. I am grateful for them and I miss their smiling faces daily.
So whether you intend to start a creative business or you are just reading along out of pure curiosity, please know that YOU are part of someone’s tribe. Maybe it’s your local coffee shop, yoga studio or another sweet independent quilt shop. Please, never underestimate your impact on the shops and establishments you frequent, you are sustaining their business, particularly if they’re a small, family owned business like ours. And if you do decide to open a creative small business yourself, remember that you don’t need a big and powerful army, you just need a beautifully curated crew of loyal and supportive tribe members.