The 80/20 rule and Business Success

Today, I visit the Pareto principle, also called the 80/20 rule. It applies to almost everything we do – just take a look around you.

Here I give some suggestions to use it in your favour – a success secret that has worked really well for me. You will develop a laser focus and optimize your results and business success.

Here are some other examples: 80% of of the money in a system or country is in the hands of 20% of the population (hint – become one of the 20%!), 80% of central London is owned by 20% of the landowners (actually, its a lot tighter than that). Out of all the foods available to you, we eat 20 % of varieties 80% of the time……. see where this is going? Now here are more relevant ones: 80% of complaints will come from 20% of your database and 20% of your sales and marketing force will produce 80% of your sales.

 

When you know this, how do you use it in your favour? Well, as I mentioned, you can use it to focus on your really important clients, meetings, articles, sales personnel, books to read, grocery list to remember and so on.

If 80% of your sales will come from 20% of your products – yikes!!! – what a waste of energy holding on to the majority of your products. Pay more attention to the top 20% and you will have more free time, and still make a very good living.

You now know that it is a small percentage of anything that gives you the biggest bang for your buck , or your biggest headache! – if you get to the rest, fine; but why not put most of your effort into the top 20% and see your efforts rewarded without overstretching yourself  & trying to do it all, in search of “perfect”, which is highly overrated in my opinion, as I have already shared. It will also provide objective evidence to get rid of unprofitable products and processes.

I particularly like using it for my wardrobe – I trim it every so often and give away what I do not use enough to justify the space in my closet. Someone else will get good use out of it.

 

I suggest you do 2 things NOW:

Sign up for my newsletter HERE  and

 

LEVERAGE your time & money into a a successful online business by using 20% of the usual time required to produce 80% of your results by going HERE

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1 comment

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    • TDee on November 18, 2012 at 8:01 am
      Author

    Thanks – and please leave some more comments and suggestions.
    I appreciate you!

  1. Amedar…

    You can certainly see your expertise in the work you write. The arena hopes for even more passionate writers like you who are not afraid to say how they believe. At all times follow your heart. “Man is the measure of all things.” by Protagoras….

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