You might have heard of the 80/20 percent rule in your lives. But what is it? Even though it sounds like a statistical term that is boring, the 80/20 percent rule is essential for everyone, especially every entrepreneur. The good news is that you don’t have to understand its statistical implications to be a follower. In this article, we will tell you about the 80/20 percent rule and how using it can change your lives! So read this article and grasp the most that you can to increase your key clients and your sales.
What is the 80/20 percent rule?
The 80/20 percent rule is also known as the Pareto principle. According to the Pareto principle, 80 percent of your outcome is from 20 percent of your inputs. It doesn’t make a difference what numbers you pick. There are few activities you perform (20 percent) that result in the majority (80 percent) of your satisfaction and outputs. You might have expected the numbers to be the other way round (20 percent of your activities produce 80 percent of rewards) which, too, is true because there are many activities you perform that generate your income.
Why is it key to know for my business?
If you’re an entrepreneur seeking to increase your sales and key clients, you must know the Pareto principle. According to the Pareto principle, 80% of sales come from 20% of clients. When operating a business, keep in mind to focus on key clients who make up the most of your income. You should regard them as valuable customers since they contribute to your incomes majorly. Therefore, your business should organise sales in a way where your key clients are attracted to your products and services more.
The Pareto principle also applies to your employees. You should work hard on workers who work hard for your business and remove the worst ones. Similarly, forget the bad clients and narrow down your focus to key clients. Make sure that they are happy, and your business will thrive!
Apply the 80/20 percent rule to your personal lives
Even though the Pareto principle is helpful for many businesses, you shouldn’t restrict its use there. Every individual seeking a healthy lifestyle should adopt this strategy. In life, one should focus on tasks that generate the best results. Before doing anything else, you must decide what your passion is. Once you’ve selected your passion, your path to long-term success will be easy and fun. However, remember to focus on getting the maximum satisfaction from it regularly rather than claiming that you’re still working on it. That is what the Pareto principle talks about! Remember, your satisfaction matters a lot more than your profession. Analyse your lives, and you’ll see how the 80/20 percent rule can help you. Identify your main happiness determinants and manage those to make your daily activities happen in a flow. You won’t waste time on 80 percent of activities that don’t satisfy you.