85/15 Model

By: Siddharth Jha

What Is The 85/15 Rule ?

• The rule of 85/15 tells that “ 85% of running a successful business is “Common Sense” & the rest 15% should be in your “Business Plan”.

• The assumption is that most of the results in any situation are determined by a small number of causes.

Common Sense

It is basic ability to perceive,understand, and judge things.

Common sense is of paramountimportance in business.

• As we know, Common Sense is not so common, it can lead a business to “Competitive Advantage” (CA) & thereby a “Superior Profitability”

Profitability

Common Sense

Business Plan

• A Business plan is the list of steps with timing and resources, used to achieve an objective.

• Business plans may be internally or externally focused.

• Business plans are guided by Objectives & “Common Sense”.

Research to conclude 85/15 Model

• Met 20 successful business man.• Sample size: 20 The success of the Business depends on: 1. Common Sense (17 respondents) 2. Business Plan (03 respondents) 3. Luck (00 respondents)

Data Analysis

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