Time seems to be the biggest obstacle for an entrepreneur so in today’s blog I am going to share with you one very simple yet very important principal named after an Italian Economist Vilfredo Pareto that will provide you with some more free time while doing less.
The Pareto Principal is a common trend in today business tools which encourages an 80/20 rule. What Pareto found through many tried and tested results is that roughly 80% of effects come from 20% of causes.
Since then the 80/20 theory has been tested and proven across many business. For example;
- 80% of problems can be attributed to 20% of causes.
- 80% of a company’s profits come from 20% of its customers
- 80% of a company’s complaints come from 20% of its customers
- 80% of a company’s profits come from 20% of the time its staff spent
- 80% of a company’s revenue comes from 20% of its products
It also works in reverse. For example;
- 20% of your customers represent 80% of your sales
- 20% of your time represents 80% of your results
The exciting thing about this theory as an entrepreneur is that it can help you focus on the areas of your business that are producing results for instance, if you work out which 20% of your time produces 80% of your business results you can spend more time focusing on those result producing activities and less time on things that’s aren’t.
So just how do you apply the 80/20 principal to your business?
- Customers – if you want to dramatically grow your profits and sales try to identify the characteristics of the top 20% of your customers who represent the 80% of your sales so you can find more customers like them.
- Personal Growth – if you want to be successful it’s time to surround yourself with people who build you up not ones who tear you down. Remove the 20% of people who cause your 80 % of stress, anxiety, depression, second guessing and focus on those 20% of people who fulfil your 80% of enjoyment, happiness and growth.
- Team Building – if you want your team to grow rapidly try to identify the top 20% performers who are generating the majority of leads and sales so you and try to identify what traits they have in common, once you understand what makes them better than your 80% you know what to look for when recruiting new prospects.
- Marketing – want to increase your brand awareness then focus on what 20% of channels (Facebook, emails, Instagram, YouTube, etc.) are generating the 80% of your sales and leads.
Now it’s time to put this rule into action! Set aside some time this week to reflect on your business using the 80/20 rule and see where you can save time and be more productive.
Share with us in the comments below how you apply the 80/20 rule to your UnFranchise Business over the next week!