The Pareto Principle For Founders

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This is your Sunday Space, where I serve up the best ideas, tools and resources I’ve found each week as we explore the technology shaping the future.

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IDEAS
The Pareto Principle For Founders

h/t to Greg Isenberg for today’s idea — The "80/20 principle" for founders

Traction: 80% distribution, 20% product

Growth: 80% retention, 20% acquisition

Revenue: 80% existing customers, 20% new leads

Pricing experiments: 80% positioning tweaks, 20% actual price changes

Brand building: 80% customer experience, 20% logo design

Sales: 80% listening, 20% pitching

Community building: 80% empowering users, 20% company-led initiatives

Product: 80% core features, 20% nice-to-haves

Time: 80% executing, 20% strategizing

Insights: 80% user feedback, 20% user behaviour

Pricing: 80% value perception, 20% actual costs

Marketing: 80% word-of-mouth, 20% paid ads

User onboarding: 80% aha moments, 20% feature tutorials

UI/UX: 80% intuitive flow, 20% aesthetic appeal

Viral growth: 80% reducing friction, 20% incentivizing sharing

Roadmap: 80% market pull, 20% vision push

Team management: 80% context setting, 20% direct orders

Customer interviews: 80% observing, 20% asking

Market positioning: 80% owning a niche, 20% broad appeal

Founder time: 80% working on the business, 20% in the business

Prioritise the 80% that moves the needle.

The rest is just noise.

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INSIGHTS
1 Article

Donald Trump Sends Bitcoin To New All-Time High

Donald Trump is the new president-elect of the United States. The election was ultimately a landslide in Trump’s favour. His administration promises favourable policies on inflation control, housing affordability, and border security. The markets ripped into the election win, with Bitcoin reaching a new all-time high of $75,000.

Luca’s take: Markets have proven to be one of humanity’s most valuable sources of truth. As Benjamin Graham famously said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” The American public wasn’t the only group voting for Trump yesterday; markets did, too. However, markets will weigh Trump’s actions in the long run. Hopefully, he delivers. Otherwise, all those promises will end up being a marketing gimmick to get back into the Oval Office.

1 Post

1 Video

THOUGHTS
Quote I’m Pondering

“If you can't tolerate critics, don't do anything new or interesting.”

— Jeff Bezos

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Thanks for reading,

— Luca

P.S. Warren Buffett in 2024…