After discussing the history behind the Pareto Principle and how it can affect your day-to-day life, we’re now going to put it all into practice.
As wonderful as working from home can be, without appropriate planning in maximizing your time, you’re going to find it difficult to juggle family, home and business, not to mention all the nuisances that crop up - wasting us lots of time and positive energy.
Abiding by the Pareto Principle (often referred to as the "law of the
vital few") can prove beneficial for your work, business and life in
In a nutshell, as Timothy Ferris states …
“The 80/20 principle, also known as Pareto’s Law, dictates that 80% of your desired outcomes are the result of 20% of your activities or inputs”.
Our focus shall be on quality rather than quantity. Working smart instead of hard - making adjustments to be more effective in whatever it is that you’re doing.
Did you know that 20% of the time you spend at work accounts for 80% of what you achieve?
We get stuck on doing urgent work instead of focusing on the few meaningful things that produce positive results.
Therefore, we’ve got to identify what are the few activities (20%) that are worthwhile and eradicate or delegate to others, the remaining 80% that bring in little or no reward.
According to Richard Koch …
"The 80/20 Principle can and should be used by every intelligent person in their daily life, by every organization, and by every social grouping and form of society."
Here are a few pointers to get you thinking. These will give you a
better understanding of the reasoning behind Pareto Principle.
More importantly, start working the whole concept to your advantage.
Remember, it’s all about determining what works and what doesn't, so you ONLY concentrate on the ‘what works’ aspects of life as well as
Implement these thoughts in your everyday life. Plan out and prioritize your day’s activities beforehand, preferably the night prior. That way, you’ll be able to give your 100% attention to what needs to be done first.
If you’re a business owner, particularly a solopreneur working from home, applying the 80/20 equation in your endeavors can be key.
One fundamental aspect of any business is its consumer base.
This may sound weird, but having more customers does not necessarily mean more income. Having a few good low maintenance clients is your objective.
Do you overly connect with those that render you a measly profit (if any), and yet soak up a lot of your time? Are they worth all your time, money and energy when compared to what they contribute?
Keep in mind that, you can always earn more money but once you spend
time, it’s gone for good.
“Invest in duplicating your few strong areas instead of fixing all of your weaknesses” - Timothy Ferriss
Considering that 20% of customers produce 80% of a company's revenue, here is an exercise to help you narrow down your focus and work with “the vital few”.
Sit down and make a list of all your customers. Go through each one of them and figure out those :-
- 20% of your clients that are producing 80% of your sales
- 20% of your clients that are taking up 80% of your time
This enables you become aware who the few 20% valuable customers are, and to whom, full attention should be given. This, whilst letting go off the remaining 80% you’re currently dealing with.
It will take you some time and you may have some difficult decisions to make. Plus it will also be necessary to set up new norms, but you won’t regret it in the long run.
As you may have noticed by now - maximum income from minimal effort is the aim! The more focus you put on the 20% of what matters, the more you increase your chances for success.
Long story short, the Pareto Principle demands that you :-
Have your say on the 80/20 Rule. Do you go by this theory? In what way? And do you find it effective? Share your story, tip or strategy below.
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Personal observations about the Pareto's Principle Not rated yet
Coming to think of it, it is true that we have a lot of waste in our lives being it time, being it resources etc. Moreover, sometimes we find it more …