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Applying the 80/20 Rule - Get more done in less time | The Millionaire Dropout

Applying the 80/20 Rule – Get more done in less time

by on March 23, 2013 in Making Money, Self Development

 

Applying the 80/20 Rule

And managing your time 80% more effectively

The 80/20 rule is an a8020stonishingly accurate equation, relating to almost every part of business and your personal life you can think of.

In essence, the rule predicts that 20% of your time, resources, services or products will earn you 80% of your revenue. In real terms, it means that most people are wasting about 80% of all their efforts!

80% of Your Time is Wasted

Let’s look at an example, which applies to almost every modern worker. The average person checks their email inbox several times an hour – and often more. During that time, they answer non-urgent mails and encounter countless distractions.

So what if we were to cut down email checking by 80%? Would a great deal more urgent tasks turn to chaos and business be lost? The answer (as you might already suspect) is absolutely the reverse. Cutting down email checking boosts productivity enormously. Not only are distractions dispensed with, but many so-called-urgent tasks resolve themselves without further input.

 

What can we learn from this? Around 80% of time spent checking emails is wasted.

Big Earners

The 80/20 rule applies to more than just time wasting. Strange as it might seem, this equation relates to every calculable part of business. So how does it work when it comes to making money? Generally speaking, 20% of your clients or products will make 80% of your revenue. If you don’t believe me, look at your own client list.

So if only 20% of your clients or products are making most of your money, who are the other 80%? These are often problematic clients or not-so-good products, which cost you lots of unnecessary time. This is time that could be spent maximizing profits from those 20% bringing in big bucks.

Cutting Out the 80%

So what would happen if you ditched the 80% of clients or products that aren’t making you much money and cause a lot of problems? You’d lose revenue from these clients and products, but you’d have 80% more time. And what could you use that time for? Ensuring your best clients and most amazing products are making you as much money as they can!

millionaire dropout 80/20 rule to starting your own business and making more money

millionaire dropout 80/20 rule to starting your own business and making more money

Time is Money

For most businesses, the idea of willfully dispensing with money-makers goes against the grain. But even removing a portion of those lesser earners will free up an enormous amount of time. When you consider it, don’t your bigger earners deserve a larger percent of your attention?

Using the 80/20 Rule Yourself

I challenge you to take stock of your business practices. In almost all cases, there are incredible efficiencies and profits to be made by applying the 80/20 rule.

What or who caused you the biggest headaches last year? Was the money you made worth it? If not, plan how you can remove these headaches from your life and business. You’ll free up your time to spend on things that are less hassle, and will almost certainly make more money as a result.

 

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