There was an Italian fellow… Senor Pareto… who came up with the twenty-eighty rule… 20% of your efforts gives you 80% of your results. Now this is a natural law and applies universally, for example, 20% of drivers will have 80% of the smashes. But think about this! If 20% of your current efforts are giving you 80% of your results, what would happen if you put 100% of your efforts into those things that give you results. Just doing the math shows that you would increase results by an incredible 400%.
Now apply that thinking to the fact that 20% of your clients give you 80% of your profits, 20% of your products or services give you 80% of your results and 20% of your team and the time they spend gives you 80% of results.
What would happen if you put more effort and focus more closely on that 20% of clients, 20% of products or services and 20% of team and time?
This week’s challenge is to identify that 20% of clients, products, services team or time (just start with one!) and start focusing more of your attention on it! Let us know how you go, we are sure you will be surprised at the results.
If you want more ideas on how to apply the Pareto Principle in your business, I recently did a series of blog posts breaking it down. Check out my “Best Business Buddy” series:
https://winstonmarsh.com.au/2021/10/a-best-business-buddy/
https://winstonmarsh.com.au/2021/10/a-best-business-buddy-part-2/
https://winstonmarsh.com.au/2021/10/a-best-business-buddy-part-3/
https://winstonmarsh.com.au/2021/11/a-best-business-buddy-part-4/
https://winstonmarsh.com.au/2021/11/a-best-business-buddy-part-5/
How to Increase Profits by 800%
This is the cornerstone of great business and too often is overlooked in the pursuit of a profitable business.
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