As a business owner you have to wear many hats and complete tasks you aren’t necessarily very good at or enjoy. But you know if you don’t do the work, it is going to affect how successful your business is.
How much time do you spend doing something don’t enjoy doing, it all starts adding up, which in turn impacts on how much time you can give working with your clients.
The Pareto Principle (named after economist Vilfredo Pareto) states that you achieve 80% of result with 20% of your effort, therefore what or where are you wasting 80% of your energy?
It would be logical for you to allocate your time working on the key tasks which provide you with your income, rather than on tasks that stop you from making money.
Where does the 80/20 rule apply in your life, especially in business?
An example would be in sales, especially if you have sales staff. A small percentage of your sales staff will produce 80% of your results. But where do you focus your time and attention? On the staff who are low achievers, attempting to train them to become high performers.
It would be more profitable for you to acknowledge that the low sales achievers are in the wrong line of work. To solve the problem ask questions to ascertain what skills they have and what is it that they are good at. If possible look at employing the unsuccessful sales persons in a position where they will increase your business profitability. Unfortunately you may need to make a hard decision to let them go, obviously legally if you don’t have appropriate work for them.
Time to look at where you are succeeding with the 80/20 rule
Now you understand the Pareto Principle, take the time to look at where it applies in your life. Perhaps you are the creator, and selling is not your strong point! Then why are you selling, if you take on board someone who is great a selling and get on with what you are best at – creating, your business will start to thrive.
Remember the principle you spend 20% of your time producing 80% of the results. What of the other 80% of your time?
You need to discover where you are wasting the additional 80% of your time, so start by start by keeping a record of everything you do, and how long for. What shows up?
To help you understand the principle I would highly recommend you read Tim Ferris’s 4 hour workweek. You and your business will thrive if you make the most of the 20%.