There are two things that business people often find very challenging: thinking ahead and doing things in order of importance. Doing these two things successfully often make the difference between succeeding in your business, surviving or even going broke. Most people have heard of the Pareto Principle, more commonly known as the 80/20 Principle. Roughly stated this says that in most businesses 80% of your business comes from 20% of your customers.
So… when it comes to your priorities, 20 percent of your priorities will give you 80 percent of your productivity and results, so IF you INVEST your time, energy, money and personnel on the top 20 percent of your priorities, you can easily achieve a 400% or fourfold return in productivity. Think what this would mean in your business!
Unfortunately in my experience, 80% of business owners I meet pretty much do the opposite, by spending most of their time on everything other than the 20% they SHOULD be! Every business person needs to understand the Pareto Principle as it applies to the areas of Marketing, Sales, Customers, team and leadership.
In the area of MARKETING - You must work out by “Testing and Measuring” which 20% of your marketing investment produces 80% of your leads (Believe me in most cases this sort of proportion is very true to reality). Once you know, you can focus your investment and effort on what works, and save your money on what doesn’t.
In the area of SALES - You need to determine what sales approach or process produces 80% of sales. If you only have one approach, you are probably an ‘Order Taker’ rather than a true Sales Person, and need to develop an EFFECTIVE sales process.
In the area of CUSTOMERS - It is vital to identify the top 20 percent who account for 80 percent of your business. These are your “A Grade Clients” and strategies must be put in place to care for them and nurture them appropriately.
As for your TEAM - You must identify your top 20 percent of producers. You then need to spend 80 percent of your people time with these people to develop them to their full potential, then use them as your resource to work with in developing the rest of your team.
In LEADERSHIP - Take an honest look at the question “What do I have to do that no one else can do?” Remember a leader can give up everything except final responsibility. You can decide whether you will be reactive or proactive when it comes to the use of your time. The question is not “Will I be busy?” but “How will I invest my time?” It’s not “Will my calendar be full?” but “Who will fill my calendar?” It’s not “Will I see people?” but “Who will I see?” Do this and watch your productivity and personal satisfaction rise to new heights!
If you would like to discuss this topic or any other areas of your business with me visit www.business-advice.com.au to send me an email or call me on 0412 895 599 during business hours.