Smart entrepreneurs and business owners are consistently analyzing the results of the work that goes into the business. Anytime is a fabulous time to analyze your year. You can assess your success in a number of ways.
Over the past year, how has your debt changed? How has your income changed? How has your health changed? Did you achieve your goals that you set for yourself a year ago? Or did you maintain a "holding pattern in your life?"
Pareto�s Law has stood the test of time. Doesn�t ring a bell? �The 80/20 rule.� That better?
The principal behind the 80/20 rule, f.k.a Pareto�s Law breaks down to this: 20% of the effort (or people) produces 80% of the results. And the converse is also true.
In the arena of business, it stands fairly consistent. 20% of the companies hold 80% of the wealth. Twenty percent of your customers are responsible for 80% of your income. 80% of your effort produces 20% of your results. And 20% of your effort, produces 80% of your results.
So, when you take a look at your analytics, and figure out what your top 20% income producers are, and your top 20% time wasters are - it doesn�t take a rocket scientist to tell you what to do. Eliminate your biggest time wasters. Get interns or assistants to handle the middle 60%, and you focus 80% of your attention on the 20% that you do best, to supercharge your results.
Twenty percent of your advertisement is bringing in money. The other 80 percent is not. Once you analyze this, what do you do with the underperforming ads? You replace them with new test ads! The top 20% becomes your control group, with which you test everything else! Smart, huh?
Twenty percent of your products and services bring in 80 percent of your company's income. You can create control and test groups from these numbers also. Gradually, you can replace the underachievers in your catalog with other products and services. You don't even have to make the products yourself - use resale rights products! Making your testing uber easy.
And when you apply this assessment to your employees? Well, you'll know who to give raises to, and who to... um... "downsize." Seriously, why pay an employee who isn't producing the work? You're better off outsourcing certain tasks to small business services comapnies that can perform tasks with expertise that slacker employees don't have the ambition to go get!
It's really not that hard to analyze your life and business like the pros! Pareto's Law is just one of the ratios that you can easily apply to many aspects of your goals.
What's working? What defines the 20% that resulted in the most success? What time wasters can you replace with more of what has worked?
Performing these assessments on your own business and life every year, or even more frequently can have people asking you, "How do YOU do it?"
