- Focus on the 20% of your customers who are generating 80% of your profits. Cultivate those relationships and watch your bank account grow! Delegate the rest to your sales team and help them to nurture the future 20%.
- Identify the 20% of your friends and business associates who can provide 80% of your support, be it marketing or emotional. Conversely, eliminate the 20% – or more – of those who drain you of your energy or stand in the way of your success.
- Find the 20% of the tasks that you truly enjoy which bring the greatest reward and put 80% of your energy into them. The rest can be delegated or outsourced.
- 80% of a business’s problems come from 20% of the business. Is the 20% related to production? Delivery? A particular employee? Periodically review your processes, policies and procedures. Communicate expectations to your staff regularly. This is about fire prevention.
Many of us have heard that 80% of your results are achieved by 20% of your efforts. Since Pareto introduced that concept back in 1896 by identifying that 80% of Italy’s land was owned by 20% of the population, it has since been applied to science, engineering, healthcare, and sports. My assistant claims that 80% of what you wear comes from 20% of your wardrobe so the applications are limitless. As a business coach, my clients frequently complain that there’s just not enough time to get everything done. Upon discussion, we have a lightbulb moment in which the client realizes that s/he is spending 80% of their time on trivial matters and only 20% of their time cultivating their core business, the very antithesis of what they should be doing. During our coaching sessions, I suggest these ways to increase their productivity – and profits – by incorporating the 80/20 rule: