The 80/20 Rule

Trey Finley

They say (whoever “they” is)…

20% of the people do 80% of the work.

20% of your time ends up generating 80% of your work.

80% of your time is spent generating the least valuable 20% of your business.

20% of your marketing generates 80% of your leads.

20% of your customers give you 80% of your revenue.

80% of your revenue comes from 20% of your product or services.

80% of your results come from the 20% of yourself that’s ready to make a difference.

The 80/20 rule is an easy way to frame how your efforts are turning into results. It’s helpful in a few areas especially:

Ask your employees how they spend 80% of their time. Now ask yourself if their time is delivering 80% of your profits. Probably not. So what’s the 5% change you can make that will directly impact your profitability?
20% of your marketing generates 80% of the new business. That other 80% is probably wasted on ads that don’t work, magazines that don’t have a call to action, and Google Adwords that aren’t high traffic. Cut the bottom 20% of your underperforming ads completely, and put that money into the 20% that IS working.
80% of your effort is spent generating 20% of your results. Getting rid of wasted effort is the quickest easiest way to increase your profitability. (Except maybe raising prices.)

The good news? With an extra set of eyes to look at your business, and to teach you where to look to find the high leverage points in your business, your 20% effort can start generating 80% of the results you’re looking for.

By business coach and Blue Ribbon News special contributor Trey Finley. Visit his website at rockwallbusinesscoach.com or on Facebook at facebook.com/actioncoachtrey.

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