Ever heard of The Pareto Principle or the 80/20 Rule? The Pareto Principle reminds us to focus on the 20% of everything that is important in our business. It was created by Italian Economist Vilfredo Pareto who noticed that 20% of the people owned 80% of the wealth. This was taken on later by others to be come known as the 80/20 rule which states that in anything the few (20%) are vital and the many (80%) are trivial! So how could this work for your business?
Many businesses have made dramatic improvements in their profitability by focusing on the most effective areas of their business and eliminating, automating, or outsourcing the rest. So, the message is don’t work harder work smarter. The 80/20 rule applies to absolutely everything in your business from time management to customer service.
So, how could this work for your business? First
- What is your vision?
- Identify which areas are essential in your business for it to grow and become successful. These could include:
- Research and Development.
- Sales and Marketing.
- Human Resource Management.
- Accounting and Finance.
- Project management and planning
- Brainstorming and problem solving
- Business Growth Optimisation and scaling
The list is endless but make it specific to your business and your vision.
- Look at each area you have identified and then see where you could just focus on the 20% that will make the most difference to your business. e.g.
- 80% of your profits come from 20% of your customers – identify who they are and focus on them.
- 80% of your sales come from 20% of your products, identify which ones.
You get the idea!
- Look at all of the areas you’ve identified, which of these could you
- Automate, simplify or streamline the workflow?
- Delegate or outsource?
- Stop doing altogether?
- Could you create passive income products?
- Make sure you eliminate distractions to free up more time.
So instead of spending your time on all 100% of your tasks focus your effort on the 20% of high value tasks and activities that get you 80% of the results. You will achieve greater results for less effort!
I hope these tips have helped you but if you’d like more support dealing with your essential tasks, please contact us.