Get Better Results Without Working More
Did you know an economist can contribute to your success? It’s true. And it’s nothing new. Check out how to grow your business faster once you apply this principle.
In 1896 Vilfredo Pareto noticed that about 20% of the peas in his garden produced 80% of the peas. Then he looked at land ownership in his country, Italy, and discovered that 80 percent of the land was owned by 20 percent of the people. His discovery came to be known as the Pareto Principle or the 80/20 rule.
When you apply the 80/20 rule in your business, you’ll find that your business grows faster. Take an inventory of your business activities, tasks, and products to determine which ones contribute significantly to your growth.
The First Step To Grow Your Business Faster
For entrepreneurs, the first step in applying the Law of the Vital Few (Pareto Principle) is to uncover the critical 20 percent in various aspects of your business.
- Identify the top 20% who are your best clients or customers.
- Determine the best 20% of activities that grow your bottom line.
- Notice which 20% of your team members who are the highest contributors in your business.
These are the people and activities that get the best results for your business. Carve out the time on your calendar to identify your powerful contributors. Then strategically focus on those people and activities for even faster growthFor faster growth, strategically focus on the people and activities that get the best results for your business. #smallbusinesssuccess Click To Tweet
After you’ve identified the power sources of your business, then examine the other 80 percent. Take a good hard look. Get rid of the biggest time wasters. The dead weight creates drag, this slows down growth.
You’ll want to evaluate the other elements of your business as well.
Look for activities, tasks, and products that are ineffective. A rule of thumb is if they are not bringing in as much as you are spending on them, then let them go. Determine which products do not generate enough profit.
Here’s your priority check:
- Activities: Figure out how to devote 80% of your time to the top revenue generating activities.
- Tasks: Are you and your staff spending time doing things that do not directly support the top income generating activities? If you’re not sure, then take an inventory. Perform a detailed review of tasks in your business. Then identify the ones that support the golden 20%.
- Products: What products or services are not generating income for your business? You’ll want to eliminate them because they’re dead weight.
Prune the Non-Performers
Go through your 80% and make wise decisions. Eliminate activities, tasks, and products that play a minor part in generating revenue. Once you prune that dead wood, you’ll have more energy and time to focus on items that grow your business faster and ultimately bring in dollars.
- Activities: Growth-minded entrepreneurs regularly review what’s working and what’s not effective. Make a decision to reallocate your activities. The top 20% that generates the most revenue for your business deserves your attention and support. You may not realize it, but there’s probably redundancy in your business. When I was helping one of my clients optimize her time, we focused on her emails. Instead of continuing to answer emails about customer questions, she set up a learning management system that encouraged client engagement and answered the bulk of questions.
Tasks: Find ways to combine tasks for a smoother flow. One of my clients realized her calendar had gotten out of hand. So we worked together on blocking time for admin tasks and time for lead generation activities. Then she eliminated time consuming tasks that did not directly create revenue.
- Products and services: Consider bundling products or services that get overlooked and undervalued. Either bundle them together or make them bonuses to your most popular products or services. One photographer added on wardrobe selection prior to the photo shoot. If a product or service consumes time and energy, but is not contributing to your business success, then discard it to focus on your revenue generating efforts.
Trimming non-performing activities and products is one of the fastest ways to consolidate your time and experience faster business growth. Take an inventory of your business. Look for time wasting, non-performing activities and products that are under-performing.Trimming non-performing activities and products is one of the fastest ways to consolidate your time and experience faster business growth. #smallbusinesssuccess Click To Tweet
Concentrate Energy on Your Best Revenue Producing Items
Identify the 20 percent activities, tasks, and products that bring in the majority of your income. Focus your energy on those specific things. You’ll have more time for your best customers, enhance your top products, and streamline your business workflow. You may even have time to generate new ideas for your business now that you know what works.
You’ll find the Pareto Principle is a rewarding concept for streamlining your business for success.
My clients have discovered that simple principles like the 80/20 Rule have helped them identify time and energy wasters.
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