Feel like you're running in one spot? Well, this week let me introduce you to the 80/20 rule. Once you implement it, you'll be running circles around the competition and actually getting somewhere.
So, let's begin!
THE 80/20 rule: the BACKSTORY
If you're not familiar, the 80/20 rule (also known as the Pareto principle) is a principle named after Italian economist Vilfredo Pareto. Back in 1896/1897, Vilfredo discovered that 80% of Italy's wealth (and that of other lands thereafter) was owned by only 20% of its population.
Since then, this principle has been tested and applied to business, sales and various other fields - and it still holds. The fundamental idea is that 80% of outcomes or results come from 20% of causes or efforts.
Interesting, right?
Now, let's dig in a little further and talk about how this applies to you.
wHAT ABOUT ME?
20 percent of all the work you do on a day-to-day basis leads to 80% of your results. 20 percent. So, it's crucial that you focus your energy on what matters most and what will propel you forward. What you do on a daily basis counts.
Time is not a renewable asset; it is the most valuable asset you possess. Yet, everyone is running out of it every.single.second. So in the scope of business, it's all about focus and taking appropriate action. Don't waste your time on tasks that won't contribute to your success.
Why the above GIF? Let me explain.
As an ambitious solopreneur/entrepreneur, you undoubtedly have goals and achievements you want to reach. But in the midst of all your activities and to-do lists, it's important not to lose sight of the value of time and the need to use it effectively.
Being busy for the sake of being busy won't get you where you want to go. You don't want to be doing the 'running man' - putting in lots of energy and movement without making any real progress.
Instead, you need to ensure that every step you take moves you forward, even if it's just a small step. Use your time productively to make real progress and grow your business.
MAKE TIME WORK FOR YOU
Let me show you how to shift your mindset and make time work for you.
Think back to that 80/20 rule. This is where it makes its grand entrance for you.
The first thing you need to do is stay sharp and identify.
IDENTIFY: Find a quiet time in the day and take a moment to think about all the work you do on a daily and weekly basis. Scrutinize it and find out which 20% of your activities yield 80% of your results.
So let's say, for example, you run an e-commerce store. You notice that 20% of your products generate 80% of your revenue. So in this case, instead of spending equal time and resources promoting all of your products, you can focus on the top 20%. Do that, and you'll start seeing significant growth in your business.
It can be a little challenging so figure out initially so the best way to do so is start by prioritizing your work from most to least important. Identify the 20% of your actions that yield the 80% of your results.
One way to do so is to track your time and results using a spreadsheet or management tools. From there, look for patterns and correlations between your actions and your outcomes. Here's a story to illustrate the point:
STORY TIME
Stephanie is a solopreneur who runs an online coaching business. She spends most of her days creating content for her blog and social media, managing her email list, and responding to customer inquiries and DMs. However, lately she's been feeling overwhelmed and burned out, and she's not quite sure what to do about it.
See, Stephanie recognizes that she needs a more efficient way to manage her tasks, stay on top of her schedule, and grow her business. So, she decides to do something about it.
First things first, Stephanie decides to actively track her time and results for a complete week. At the end of the week, she realizes that 80% of her inquiries are coming from 20% of her followers and blog readers. She notices something else - her most popular reels and blog posts generate 80% of her traffic.
What Stephanie does next is important. To help her stay organized and productive, she explores project management tools and starts using Trello to track her tasks and deadlines. She sets aside specific blocks of time for content creation and engagement with her audience.
With this information, Stephanie decides to focus more on creating high-quality content and engaging with her most active readers and followers. Armed with the right tools and a better understanding of the 80/20 rule, she can make the most of her time, avoid burnout, and see her business grow.
WHAT YOU CAN DO
Just like Stephanie, you too can learn to work more efficiently. It's not easy and will take some work and consistency, but the results are transformative. To make the 80/20 rule work for you and your business, I encourage you to remember these 4 keywords:
ANALYZE
STREAMLINE
AUTOMATE
PRIORITIZE
Let's break it down:
Analyze your own data: Take a closer look at your business metrics to identify the 20% of your customers or followers who generate 80% of your results. This will allow you to focus your time and energy on the most profitable and effective areas of your business.
Streamline your content creation: Instead of trying to create content for every platform, focus on the ones that generate the most engagement and traffic. This will allow you to create high-quality content that resonates with your audience and drives more traffic to your business.
Automate repetitive tasks: Use project management tools and automation software to streamline repetitive tasks like scheduling social media posts or responding to emails. This will free up more time for you to focus on high-impact activities that drive your business forward.
Prioritize self-care: Remember that time is your most valuable asset, and taking care of yourself is essential to your long-term success. Schedule breaks and downtime into your day to avoid burnout and maintain productivity over the long haul.
The wrap-up:
The 80/20 rule is another powerful tool for optimizing your time and productivity. It comes down to identifying and focusing. Identify the 20% of your actions that yield 80% of your results and focus your efforts on those areas.
By implementing the practical steps outlined above in how you work today, you too can take your business to the next level.
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