how to use the “80/20 principle” to grow your business FASTER
If you didn’t know this already, I’m a numbers nerd. Yup! I love testing new things to analyze the data and statistics and understand how I get the results that I do (and I’m not ashamed to say so!).
What I just can’t let go of, though, is the idea behind the 80/20 principle which says that…
➡️ 80% of your RESULTS come from just 20% of your EFFORTS.
➡️ This means that ONLY 20% of the things you affect MOST of your results. (And most of your income!)
➡️ This also means that a WHOPPING 80% of the things you do in your business create ONLY 20% of your results.
Mind-boggling, right? My head is spinning right now!
Forbes shares some real-life examples of how the 80/20 principle unfolds:
- 20% of manufacturers supply 80% of the market
- 20% of sales reps generate 80% of total sales
- 20% of customers account for 80% of total profits
And just for fun…
- 80% of your time is spent in 20% of your house
- 80% of your meals come from 20% of your cookbook
- 80% of what you wear is 20% of what’s in your closet (scary accurate, am I right??)
So, if you’ve been spinning your wheels trying to get your business off the ground, it could be that you’ve been working against the 80/20 principle.
If you truly understand this principle, it can be way more powerful than “time management” ever can be. Figuring out how to prioritize the right things will have a shocking impact on your results.
When I was working to start my business, I read countless blogs and watched YouTube and listened to podcasts to learn what I should do — and much of it was helpful!
I appreciate all the advice I received from successful entrepreneurs and business coaches when I began my business, but there was one big problem: they were all telling me different business strategies that worked for them, and they flooded me with so many ideas for products or services I COULD do, and as I was listening, I felt like they were ALL things I SHOULD do.
Little did I know that focusing on one or two main drivers would be what would finally move my business forward and grow my income. When I let go of all the could do’s or should do’s and prioritized one to two areas of focus – and spent 80% of my time there – everything changed.
I saw the 80/20 principle take full effect.
It’s vital you figure out what you NEED to be focusing on in your business because of this principle. You want to focus your main efforts on anything in the 20% that will produce the 80% results and let everything else go.
Of all the things you COULD do in your business, what is the most beneficial? What will drive the best results? What tasks or projects need to be in the 20% of effort to produce the 80% results?
A mistake I often see is entrepreneurs with LONG to-do lists, and they think they need to finish everything on it OR they are suddenly behind. However, they start with the easiest, most menial tasks, and when it comes time to work on the important projects (the 20%), they’ve run out of energy and time.
So, how can you use this principle in your own productivity when working on your business?
- Identify the most important tasks in your business that are the main drivers of your results.
- Start with and focus your attention on those tasks (most likely 20% of what you could do in your business).
- Allow the other things to fall to the wayside if you run out of time. That 20%, those most important priorities, are what move you forward and are what you need to focus your attention on and create consistency with — everything else can wait, if necessary.
Want to get on and stay on the right track focusing on the 20%? Join me in Startup Society and follow our Startup Success curriculum to turn your business into a money-making machine. As a member, you’ll also get access to our monthly live training sessions, exclusive mastermind program, and weekly co-working groups!
I’d love to come alongside you and make earning a living online a whole lot easier.
Join us in Startup Society today where we’ll teach you how to start a successful online business – without the guesswork – and get that 80/20 principle working for you!