In Business the Law of Averages is not always Common Sense

Many business owners seem to think that they will get an average,
or “their fair share of business” in a local area.

Relying on this alone does not make sense.

In a recent NRG business networking seminar I attended,
the presenter was Chris Bose of Inpress PR.
He spoke about the operation of Power Laws with Internet Traffic.
Whether on the Internet as a whole or in specific niches,
the dominant players get nearly all the traffic.

So in business it pays to define a niche and then dominate that niche.
Not to rely on the law of averages.

Doing the right thing and measuring the result

I attended a seminar a couple of weeks ago at the Reading NRG Business Networking Group. It was presented by Phil Parr of the branding agency, twentyfive, on the subject of business to business branding.

One of the points he made was about the importance of constantly measuring the results of your branding activities.  He also stressed that the key to measurement is that it tracks the effectiveness of activities and does not become an end in itself. He quoted an old proverb to illustrate the point.

“you can’t fatten a pig by weighing it”

He is absolutely right about the common sense of measuring, and also right to warn about the dangers of becoming obsessed with that alone. I am sure can all think of business & government examples of the latter.

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