Chapter 2. What Businesses are You in?
Within your area, there are almost certainly a lot of different businesses – far more than you realize.
The first step in your strategy process is to define these different BUSINESS SEGMENTS – or segments for short.
Why is this important? One of the most glorious insights about life, the universe and everything, is the 80/20 principle (sometimes called the Pareto principle). This states that 80 per cent of the value of any activity is likely to come from 20 per cent of the inputs. Eighty per cent of the value you generate in your work, or come to that, in your home life, is likely to come from the most useful 20 per cent of your time. Eighty per cent of the profits of a firm are likely to come from 20 per cent ...