Finding your ‘20%’
If you consider yourself an entrepreneur, chances are at some point you’ll run across an interesting fellow named Vilfredo Pareto.
Vilfredo Pareto was an italian economist who’s now mostly remembered because of his ‘Pareto Principle’, also known as the 80/20 rule.
Let me paraphrase it for you here because it can have a tremendous impact on your business’s profitability.
For many things, 80% of your effects come from 20% of your causes.
Meaning: 80% of your business profit comes from 20% of your activities.
80% of your sales come from 20% of your staff.
And 80% of your new leads probably come from 20% of your sources.
You can see if this plays out in your own business by taking a quick audit of your time. For me, I have found it to be true over most areas of life and business. And this is a good thing.
Because figuring out what that productive 20% is, is a way of freeing up your time, resources, and making a WHOLE lot more money.
So ask yourself this question: What are my 20%?
What makes you the most money per hour put in?
If you’re anything like most business people your answer is sales, marketing, planning the future of your business, and more sales.
Yes, I said ‘sales’ twice.
I’m assuming you’re in business to make money and live a freer life, not out of the goodness of your heart.
So while your daily focus can be stolen away by urgent-but-unimportant tasks like email, logo-design or some other such nonsense, the very best and most lucrative use of your time is likely to be focusing on increasing sales.
I can’t say that with absolute certainty, but I can be pretty sure. Anyway, it’s beside the point.
Because the real thing that Pareto teaches you is that a careful analysis of cause and effect in your business can yield serious results.
So why not set aside 30-minutes today to have a look at what you’re focusing on?
You might find that blocking your Facebook account from 9-5 might be a good idea as you’re simply wasting too much time online. Or you might find that hiring a virtual assistant could potentially MAKE you an extra $500 a week, even though you previously considered it an expense.
Either way, I think you’ll find it extremely useful. And while we’re on the topic of useful, here’s something else you might like…
Matt Lloyd, founder of MOBE has just published a revolutionary new book.
Inside you’ll discover the exact steps to take to make six-figures online this year.
That’s $100,000 (or more) that can be made from your spare bedroom… a beach chair in Bali… or from a french chalet in the Swiss Alps…
The choice is yours.
This kind of lifestyle can seem too good to be true if you haven’t heard of this type of business before, but once you get the details it makes a lot of sense.
You can get all the details here.