The 80-20 rule, also known as the Pareto Principle, asserts that 80% of outcomes result from 20% of all inputs.
Here is how it applies to agency business and how the founder can use it to her advantage.
Figure Out | And | |
1 | Which 20% of clients bring 80% of profits/revenues | Focus on them |
2 | Which 20% of clients create 80% of headaches | Fire them |
3 | Which 20% of employees bring 80% of performance | Nurture and train them |
4 | Which 20% of employees create 80% of headaches | Fire them |
5 | Which 20% of activities create 80% results and revenues for you | Do more of them and reduce the rest 80% |
6 | Which 20% of services/solutions bring 80% results for clients | Focus on those services because clients are happy to pay for results. Your business will grow faster |
7 | Which 20 people make you most comfortable and do the best for you. Include family and friends — include select clients if they belong in this group. Start with yourself. Why? Because you can’t enjoy success if not fulfilled | Focus on these 20 before you attend to the next 80 |
8. | Which 20% part of the work day you are most productive | Schedule your most impact/growth-creating action during that time. |
Do you already do any of these intuitively?