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

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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 Bachrach

The Accountability Coach™

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