The pandemic and restrictions that are being implemented left and right has freed some time for most entrepreneurs to engage into more productive activities. It is, however, tempting to forget all about the 80-20 rule when we’re given this much free time.
For those who are not familiar, the 80-20 rule otherwise known as the Pareto Principle, says that 80% of the yield is caused by 20% of the overall resources. This principle is observed in economics and is being applied in business.
Taking the 80-20 rule, we can say that out of all the functions in play in doing business, there’s a 20% that brings in 80% of the income. This 20% is what you should be focusing on. What about the other resources outside of this 20%? You can hire someone to do it or outsource it while you focus on the 20 that matter.
Now, applying this principle would be a bit tricky especially if you’re a workaholic and a control freak. Are you still taking in calls? Are you still sending out proposal messages? Don’t tell me you’re still doing the cold calls! Now, doing all these and being a one-man band is especially tempting with all the extra time you have brought by Pandemic regulations, but that’s not how it’s supposed to be!
Here are three steps to get started in applying this principle into your business:
- List down all of your company’s resources and processes.
Sometimes, this is going to end up being the list of things you do because you do everything. If you’re a real estate investor or realtor your list might look something like this:
- Talking to clients
- Showing a house
- Developing an investment strategy
- Closing deals
- Signing up new clients
- Exploring new territories
- Doing Research
- Checking email inbox
- Checking voice messages
- Curating your CRM
- Doing cold calls
- Doing follow ups on clients
- Updating your website
- Posting on social media
- Growing your LinkedIn network
- Posting ads
- Putting up signs
Now, applying the 80-20 principle, you’re going to have to check which of these processes are the top 20% that brings in money. You will end up having
- Talking to clients
- Showing a house
- Developing an investment strategy
- Closing deals
- Focus on the twenty
Now that you’ve identified your best processes or resources, you need to clear out your schedules and take the rest off your plate. No excuses! Hire someone who can do that for you. As the head of the business, your time is too valuable to be spent on making cold calls for 20 hours a week. Do you really have to spend two hour everyday sending connection requests on LinkedIn? Hire someone to do this for you. You can hire a Virtual Assistant for a few dollars an hour to take care of these for you.
- Be Consistent
Have extra time? Don’t even think about drowning yourself into sending out Facebook messages, or sending out emails to everyone on your contact list and ending up spending half the week doing it. Keep your focus on the 20%. Let your staff or your Virtual Assistant take care of the rest. Wanna do something in that area? Develop a new script for your VA’s cold calling, compose a new email you want them to send out, devise a new sales funnel for your VA to execute; that’s where your talent is better spent. Focus on the twenty that brings in plenty.
This principle has been in play for years. It is a phenomenon that is seen in economics and it has been proven to be an effective tool in maximizing profits.
Do you wish to learn more about how a Virtual Assistant can take other tasks off your plate? Email us at Marketing@LinkosGlobalBusinessSolutions.com or call us at +1 (626) 566-8381.
