What if you could simplify your life and business and do less while having more energy, time and money?
Join me as I share how you can leverage the 80/20 rule in all aspects of your business and even your personal life.
One of the key pillars of all of our programs is to help our clients simplify, outsource, automate and delegate so that they can get more time and focus on what is really causing an impact in their business.
We want to maximize our time, energy and money so that we are getting the results that have the most impact on our clients, our family, our team, our community and our finances.
So what is the 80/20 rule and where did it come from?
It actually traces all the way back to the late 1800’s and early 1900’s and the brilliant work of
Vilfredo Federico Damaso Pareto whose interests and impact are fascinating .
He was an Italian engineer, sociologist, economist, political scientist, and philosopher who helped develop the field of microeconomics.
The Pareto principle was named after him, and it was built on his painstaking research of income distribution across time and locations. It started when he observed that 80% of the land in Italy was owned by about 20% of the population.
I first learned of the 80/20 rule through Perry Marshall who is an incredible marketer. He wrote the book 80/20 Sales and Marketing.
In it he references the book the 80/20 Principle by Richard Koch.
What is amazing is that the 80/20 principle applies across almost anything that has a cause and effect or inputs and outputs.
So let’s talk about it in terms of YOUR business.
My guess is that if we did some number crunching and analysis of your biz, that it would closely resemble the following.
- 80% of revenue comes from 20% of services or products
- 80% of customer service issues come from 20% of clients
- 80% of Expenses come from 20% of your line items (hello payroll)
- 80% of PROFIT comes from 20% of service or products
- 80% of your Joy comes from 20% of your activities
Here are a few things to think about.
What is the most profitable part of your business?
If I told you that you could only offer one product or service, what would you pick?
Run your numbers (and if you don’t know how to look at your numbers, hire a book keeper to help you with this).
What % of your profit is coming from that product or service?
We don’t just want to look at revenue, we want to look at profit because the product that is providing the most revenue, may not be the most profitable and my cost your a lot of time and energy.
Or your highest revenue service may be the most profitable.
It is different in every business.
But what if you could simplify your business offerings?
What if you focused more on that area that was creating 80% of the profit for 20% of the effort?
Are you spreading yourself and your team thin for no reason?
This is one of the many reasons I encourage clients to specialize in their business.
It is also why we help our clients build high performing teams and to fire those team members that are causing 80% of the issues.
I actually did this training on one of our recent CEOCHIX calls. What i found was that each of them knew instantly the area they should focus on – whether it was related to revenue, profit, expenses, clients, products or their team.
I think you know too.
I think you know the one area you need to dig into today and do some deep thinking on.
Making a change doesn’t have to be immediate.
We first need to be aware of what is happening.
And for those of you that like to be “exact” – the 80/20 rule is a guideline. You might find the numbers are slightly different like 70/30 or 90/10. The point is that there is a gap between the energy/time/money output and the result/effect.
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Listen to Stacking Your Team
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BizChix Episodes Mentioned:
254: How to Design Your High End Offer
273: How to Get Out of Overwhelm
There are a few other ways we can support you:
1) Subscribe to our podcasts – we have BizChix and Stacking Your Team
2) Check out my book R.E.S.E.T. Your Mindset
3) Let us help you grow and scale your business. GrowthChix helps you go from 5 to 6 figures in revenue. ProfitChix is for 6 figure business owners who want to make 6 figures in profit. CEOCHIX is for multi-six and 7 figure business owners who are building teams and ready to lead as CEO and gain more harmony in their lives.
4) Join us at BizChix Live our leadership conference for women entrepreneurs November 8-10. I hope you will join us for 3 days as we grow as entrepreneurs, connect as a community and build deeper relationships
