When you understand the Pareto principle, you can use it to get more work done. Companies today heavily embrace the Pareto principle and in so doing, their productivity is heavily boosted. As a small business owner, you wear many hats, from administration to accounting to sales and marketing. With so many conflicting demands and priorities, it becomes easy to get overwhelmed. This is where you apply the Pareto principle. When you understand to apply this productivity principle, you can get more work done with less effort and boosted productivity
What is the Pareto Principle
Before we can have a look at how the Pareto principle can help boost your productivity, it is important to understand what the principle is all about. Termed as 80/20 rule, it was invented by the famed Italian economist Vilfredo Pareto, who observed 80 percent of Italy’s land and wealth was owned by 20 percent of its population. Translated to general terms, 80 percent of out outcomes are driven by 20 percent of our efforts. It doesn’t have to be exactly this figure, as you can try to find a balance between 75/25 and 90/10. This shows that if the 80/20 rule allows you to maximize your efforts, ensure everything you do is driving the highest level of results.
Adopting the 80/20 mindset in Business
Now that you have known what Pareto principle is, you should know its impact on business. There are different ways the 80/20 rule can transform your business. It will lead to less stress so that you don’t spend a lot of time working on tasks that do not produce any real results. When you work on things that don’t matter, you will feel the burnout and your productivity will be slowed down. Applying the 80/20 rule will hone your tasks so that it can have a real impact on your business.
Additionally, you will generate a higher level of engagement with your work. In addition to making you feel overwhelmed, you will be spending a lot of time and energy on tasks that are not important and not working, and as a result, you feel bored and frustrated and completely disengaged from your work. You can apply this rule so that you spend your time and effort on tasks that matter, and this may make you enjoy your work and be more engaged.
You will also create more time for passion outside your work. The principle will allow you to get more done with minimal effort. This will free up your time and give you more energy in your life so that you can pursue the passions outside your work – such as spending time with your family and exploring new hobbies.
To make the Pareto principle work on you, there are a couple of tasks you need to do. Track your time to identify all activities that eat at your time. Embrace automation as doing so presents a great opportunity to streamline tasks in your business. Focus on key clients as a small percentage of these clients will give you maximum revenue. Consider getting rid of anything that eats on your time and thinks beyond your business.