The 80/20 Pareto law is related to your business and its success. Do you know about the 80/20 rule and its definition? Let’s learn about the 80/20 rule and how this can have an impact on your success if you are ready to rethink, revamp and redesign your business!
This Pareto principle, also known as the 80/20 rule, is a theory maintaining that 80 percent of the output from a given situation or system is determined by 20 percent of the input. Vilfredo de Pareto was an Italian sociologist and economist who, during his studies, realized that, in general, 80% of a nation’s income was in the hands of only 20% of the population.
Did you ever hear these expressions?
20% of your time produces 80% of your business results
20% of your products represent 80% of sales
20% of employees are responsible for 80% of the results
20% of posts generate 80% of traffic
But why does it matter?
Because you can use the Pareto law in your own business! Often, most of the stuff we do as business owners is a waste of time! 🤦♀️
The 80/20 rule can help you better identify aspects of your business, such as sales strategy or marketing campaigns, that aren’t performing at their full potential. When I realized that 20 % of my marketing strategy was generating 80% of my revenues, I modified how I promoted my offering. I also completely revamped my schedule to be more productive.
How can you use it for your business?
You probably try to understand how you can apply Pareto’s principle to gain more success in your business. Applied to business, it means that 80% of the work you are doing each creates only 20% of your revenue, while 20% of what you offer is generating 80% of your revenue.
Rethink your schedule with the 80/20 rule
20% of your time produces 80% of your business’ results, so let’s start with your schedule!
Take the time to list all the tasks you must do this week. Then, I want you to split them into four categories:
ELIMINATE: Can you eliminate some tasks? Checking and responding to emails can be a time-consuming task you may want to pass on to someone else, and unless your business thrives on social media, you probably don’t need to manage your accounts yourself.
AUTOMATE: Let’s look at all tasks that can be automated. Which tasks can be done via email or software programs? Onboarding new clients, invoicing clients, promoting via your social media? I love to use Dubsado for my clients!
DELEGATE: Do you have some tasks that you can delegate to someone on your team… or to a VA (virtual assistant) that you can hire for 5 hours a week? Maybe your VA can respond to emails or do a follow-up when a payment is not processed, and the email you sent remained unanswered?
FOCUS: Now, let’s focus on tasks that will generate more revenue for your business. 20% of your time on products/services, generating 80% of your revenues. Picture yourself working fewer but more focused hours and making the same revenue (and more). It’s possible!
Now it’s time to take action and rethink your schedule with the 80/20 rule. What can you do differently?
Revamp your offering with the 80/20 rule
For most businesses, only 20% of your products or services generate 80% of your revenue.
Let’s look at your offering and decide if it is time to eliminate some products or services!
Your offering is the products and/or services you sell to your ICA (Ideal Customer/Community Avatar). Again, take the time to list all your offerings. Use your accountant system, website, or wherever you keep track of how much each of these individual products/services have generated over the past 12 months.
IF YOU DOUBLE DOWN ON WHAT IS GENERATING 80% OF YOUR REVENUE, YOU CAN DOUBLE OR EVEN TRIPLE YOUR REVENUE, ALL WHILE ONLY DOING 20% OF WHAT YOU USED TO DO!
Now it’s time to take action and revamp your offering with the 80/20 rule. What can you do differently?
Redesign your strategy with the 80/20 rule
20% of posts generate 80% of traffic!
Let’s look at your marketing and sales strategy to generate more sales. Maybe you don’t need to post on every social media platform.
What about your sales? Does 20% of your sales team generate 80% of your revenue?
I soon realized that LinkedIn was not the right platform to promote my business, and now I only promote my business on Facebook and Instagram. Also, I often get people reaching out because they want to promote my business for me, and the results were never what I was expecting. In addition, my clients decide to work with me because of me (and it’s the same for all coaches), so there is no reason I should invest time and money in a sales team.
Now it’s time to take action and redesign your strategy with the 80/20 rule. What can you do differently?
If you need help to rethink, revamp and redesign your business, grab my 100+ Tools & Resources.👇
Remember, the 80/20 rule can help you better identify aspects of your business, such as sales strategy or marketing campaigns, that aren’t performing at their full potential.
Now, let’s answer a simple question… what 20% of your work drives 80% of your outcomes?