Use the 80/20 Rule to Grow Your Business

If your business is not growing, you need to get a handle on the way you’re running it.  Many business owners tend to spend a great amount of time performing unnecessary tasks that contribute little to the growth of your business.  The 80/20 rule, otherwise known as the Pareto Principle, teaches that only 20% of your actions should lead to 80% of your results.  Get a handle on your business by putting the 80/20 rule into effect and identifying your high payoff tasks. The 80/20 Rule (Pareto Principle) Explained Developed in the early 19th century by Vilfredo Pareto, an Italian economist, the Pareto Principle was used to explain why only 20% of the population was responsible for 80% of the country’s wealth.  It was later in the mid-1900s that the theory of the Pareto Principle was modified by Dr. Joseph Duran.  When applied to cause and effect, he theorized that 20% of actions (cause) would produce 80% of the end results (effect).  Because Duran’s theory expanded on Pareto’s original version of the 80/20 rule, Dr. Duran’s theory soon became known solely as the Pareto Principle. What the Pareto Principle Means for Your Business The 80/20 rule can be applied to pretty much any situation, but, it is especially beneficial when applied to a business (especially if you’re currently a one person show).  The 80/20 rule isn’t just another ordinary time/business management method; when used effectively, it holds the power to drastically increase your income and free up your very valuable time, allowing your business to grow. Maybe this means that you can cut down on staff by weeding out tasks that are completely unnecessary by setting up an automated system.  Perhaps it means that it is time for you to hire an assistant or virtual assistant to whom you can delegate low-priority tasks.  Using the 80/20 rule to identify the high payoff tasks within your business and automate the low-priority or non-income driving tasks will allow you the freedom you need to grow revenue.  To download my Free Sample Prioritized Action List (PAL) that everyone in your office can use, go to https://www.accountabilitycoach.com/pal-sample/. Identify the High Payoff Tasks For the purpose of putting Duran’s theory into context, let’s say that 20% of your employees are responsible for driving 80% of your sales, or 20% of your clients make up 80% of your product or services sales revenue.  To grow your business and success, it’s vital that you closely analyze your business model and examine which 20% of your actions are accountable for 80% of your results. Put the 80/20 rule into action by focusing in on specific tasks that will result in driving sales and revenue.  Instead of relentlessly marketing your business to new clients, focus more of your attention on up-selling to your existing clients.  It takes as often as ten times the effort to get new clients to purchase from you as it does to up-sell to an existing client.Review your product and service sales for the past two years.  If you have products or programs consistently not selling - close them out at a reduced cost or completely discontinue them.  Identify the products or services (usually 20% of your stock) that consistently sell and then focus your energy on driving more sales to more clients.If you’ve received client feedback, let’s say, on an eBook you wrote, the instinctive solution would be to either address each inquiry individually or release an updated version of the eBook, free of charge.  However, you can easily turn the situation into a high payoff task by keeping that feedback or questions in mind and addressing them in a completely new series of eBooks.  Remember, the Pareto Principle is about doing moreUnlock a blueprint to creating and having your ideal business and ideal life by scheduling your free consultation with me today! Want more proven business success tips and resources? Subscribe to my blog by going to www.acountabilitycoach.com/blog. Go to https://www.accountabilitycoach.com to check out for yourself how I, as your Accountability Coach™, can help you get and stay focused on you highest payoff activities that put you in the highest probability position to achieve your professional and personal goals, so you can enjoy the kind of business and life you truly want and deserve. I’m the author of many books, including, Excuses Don’t Count; Results Rule, Live Life with No Regrets, No Excuses, The Guide to Stopping Procrastination, The Power of Visualization, My Gratitude Journal, the Work Life Balance Emergency Kit, and The Roadmap To Success with Stephen Covey and Ken Blanchard, and more.  Aim for what you want each and every day!  Anne BachrachThe Accountability Coach™Get your daily Accountability Minute shot of a single, simple, doable idea, so you can start your day off on the "right foot". You can find The Accountability Minute on your favorite platform