Have you ever noticed that no matter what you do, it seems like you too often end up spending too much time on little things that ultimately don’t make much of a difference in your business? Think about it! “Spinning your wheels” is a common problem! Productivity can be easily hampered when your mental and emotional energy is being pulled away from the things that really create success!
The good news: You’re not alone. In fact, you’re really quite normal. You see, whether or not you realize it, you’re living the reality of the 80/20 rule. But maybe you haven’t put it to work for yourself in a way that gets you the results you desire, yet.
So, what exactly is the 80/20 rule?
The 80/20 rule, or the Pareto Principle: has been widley defined as the idea that 80% of effects from from 20% causes.
Fascinating, right? An Italian economist in the early 1900’s was the first to make this observation. He noticed that the 80/20 rule applied in many different areas. For instance:
In team efforts, 80% of the work is done by 20% of the participants.
In investments, 80% of revenue comes from 20% of investments.
In agriculture, 80% of the crop comes from only 20% of the seeds.
In countries, 80% of the land is owned by 20% of the people.
In economics, 80% of the money is controlled by 20% of the people.
And in Sales…
80% of your time is spent on 20% of your revenue.
80% of your sales come from 20% of your clients.
80% of your revenue comes from 20% of your sales force.
80% of your results come from the first 20% of your time and effort.
Observe in your business, and you’ll almost always find this to be true. So, let’s go back to why you’re spending so much time on little things.
What you’re probably doing is spending 80% of your time on 20% of your business.
Incredible, isn’t it? At first this may not seem like good news, but I assure you it is! Because here is the key:
You can shift the dynamic of the 80/20 rule in your business!
How? Well, for one thing, you can start working with just your top 20% of customers. These are your target clients – your favorite ones – the ones that you went into business hoping to serve. Yes, it’s true that when you focus your efforts on the 20%, you’ll lose 80%. But remember, that 80% is only creating 20% of the revenue for you!
And here is the key: Once you are working with only your top 20%, you’ll find that there’s another top 20% in THAT group. And from that, another top 20%!
Do you see how this has exponential implications for your business? You can keep refocusing on the top 20% every quarter or so, and you’ll find that your sales will grow immensely from this one strategy alone!
How else can you utilize the 80/20 rule?
- Focus on the top 20% of your sales force. Analyze them. What are they doing? What are they not doing? Perhaps they are really all you need!
- Invest more in your top 20% of clients. They’re 80% of your revenue!
- Look at your time. Examine your calendar. Be intentional about the first 20% of your day. Isolate the things that you know to be the most productive – and take out the things that aren’t.
Successful people know the 80/20 rule well – and they put it to work for themselves! If you haven’t utilized the 80/20 rule yet, NOW is your time.