Today it can be quite confusing as to what to focusing on in your business. I found a lot of my clients are stressed out and overwhelmed, not having certainty in what they need to do in their business. It gets worse, many business owners do not even track and measure or have systems in place so they can see what is working and what isn’t.
When I first beginning working with a new client we spend some time to put into place some systems and processes to help them gauge where they are investing all of their time and finances. I have had many conversations with new clients who have just invested a huge amount of money into tactical marketing and got zero ROI.
Business owners need to stop and work ‘on their business’ along with ‘in their business’. They also need to understand that to grow a business you also need to invest into your business. I just attended the co-working space launch for Christie’s in the Brisbane CBD. All of the featured speakers spoke about having to start from humble beginnings, taking risks, and investing a lot of money into their business to get it established.
Let’s talk about Pareto’s law within business.
Well, here’s the key. Have you ever heard of Pareto’s Law? Vilfredo Pareto was an Italian mathematician who lived more than 100 years ago. He made a startling discovery that still applies today. He discovered what is now known as the 80/20 rule. That rule basically states that small actions produce a majority of results.
For example, count the total number of clothes in your closet, and then count how many of those clothes you frequently wear. You will find that you wear about 20% of the total 80% of the time.
Add up the toiletries in your bathroom, and then count how many you use daily. You will discover you use about 20% of them 80% of the time. Your business is no different. 20% of what you do every day at work is producing approximately 80% of your total revenue. That also means that 80% of your daily activities produce only 20% of your total revenue.
What would happen if you could discover WHY 20% of your activities produce so much more revenue… and replace the remaining 80% of your non-productive activities with more activities like the 20%? You would see your revenue skyrocket by a factor of 16.
We actually refer to Pareto’s Law as 16X, and we developed our own programs around this very principle… a principle that focuses on the critical few versus the trivial many.
Our programs help business owners apply the right information in the right order, and they help them to stay focused on just those few critical fundamentals that grow multimillion dollar businesses.
If you learn which activities in your business are truly “high profit-producing activities,” and then you perform more of these “productive” activities, your revenue will explode.
This explains why the wealthy work less and earn more… and why you need to learn to work smarter, not harder. So why aren’t you currently performing these so-called “productive” activities?
The answer… you’re NOT doing the things you SHOULD be doing. You’re NOT doing the things that are your highest profit-producing activities. It’s these activities that drive the revenue into your business.
Answering the phone, responding to emails, ordering supplies, paying the bills, keeping the books, surfing the internet… are NOT high profit-producing activities.
I hope you enjoy
PS here is a link to grab your free chapter “how to add value in your business and make 1 + 1 =3” – DOWNLOAD HERE