The 80/20 Principle argues that a small number of causes typically drive the majority of results—roughly 20% of inputs produce 80% of outcomes. Richard Koch takes this familiar idea (the Pareto Principle) and shows how intentionally applying it can dramatically improve performance, profitability, and quality of life.
For small business owners, this book is a quiet but powerful wake-up call. Koch challenges the default assumption that “more effort equals more results.” Instead, he urges leaders to identify the few customers, products, services, employees, and activities that generate the bulk of value—and to double down on those while reducing or eliminating the rest.
The most practical insight is that 80/20 thinking is not about working harder or cutting indiscriminately; it’s about working smarter. In business terms, that often means:
- A small percentage of customers produce most of the profit
- A handful of products or services account for most revenue
- A few recurring problems cause most operational headaches
Koch encourages owners to use this lens to simplify operations, focus management time where it matters most, and design businesses that are both more profitable and less exhausting to run.
Why it matters for small business owners
- Improves profitability by focusing on high-margin customers and offerings
- Clarifies where leadership time and energy should go
- Helps reduce complexity, stress, and unnecessary work
- Supports better strategic decisions with fewer moving parts
Bottom line:
The 80/20 Principle is not a tactical “how-to” manual—it’s a mindset shift. For small business owners who feel stretched thin, this book offers a compelling argument that the path to growth and sanity is not doing more, but doing less of the right things.
Purchase your copy of The 80/20 Principle here. This is a paid link.