Can You Really Explode Your Revenue By 16 times?
As we are completing 2014 and approach 2015 it’s time for a thorough evaluation of what we have accomplished this year. It’s important to notice that everything we have accomplished is because we have been proactive – whether it is through our actions or our intentions.
I have found that there are different perspectives from which we have to evaluate our progress. We need to review our budgets. We need to review our growth/expansion timeline. We need to review the quality of services that we are providing. We need to review how much more time we were able to spend with our families and friends. And much more…
One of the most important areas to evaluate is how we have spent our time. A great framework for this kind of evaluation is through the perspective of the Pareto Principle, also called the 80/20 rule. This post is not about the principle itself. (You can read more about it here.) This post is about how to apply it to your review.
According to the Pareto Principle 20% of what we do every day (at work) is producing approximately 80% of our total revenue. That also means that 80% of our daily activities produce only 20% of our total revenue.
Whether or not these numbers are 100% accurate is irrelevant. It’s the principle behind it that matters. There are activities that we are doing that produce more results than others. Period.
Explode Your Revenue By 16 times?
What would happen if we could discover WHY 20% of our activities produce so much more revenue… and replace the remaining 80% of our non-productive activities with more activities like the 20%? We would see our productivity, maybe even our revenue or profit, skyrocket by a factor of 16.
This is an important perspective, and I believe one of the critical keys to creating breakthrough results in our business. If we can perform more of these "productive" activities, our revenue will explode, but more importantly, we’ll be able to impact so many more people through our work. Failing to utilize this principle essentially has us continue to struggle and not see the results we deserve.
Once we know what these high-leveraged activities are, the next question to ask is why aren't we currently performing these so-called "productive" activities?”
Answering the phone, responding to emails, ordering supplies, paying the bills, keeping the books, surfing the internet… are NOT high income-producing activities.
High income-producing activities are things like developing and creating new products or services, improving our current product or service, marketing that new product or service, developing joint venture relationships or affiliate programs, innovating our product or service so that it makes our business unique & superior, acquiring various elements of proof to use in our marketing such as testimonials or research.
These make up our highest income-producing activities, our activities where we can make the biggest impact… and these are the areas where we need to focus. Some of these we’re good at… we have "unique abilities" that lend themselves to these specific types of activities. In other areas we simply are not good at it.
The secret is to match them up properly so that we’re constantly performing our unique abilities in the areas that will create the maximum impact for our business and the clients we serve.
Here Are Some Questions My Coach Gave Me To Contemplate:
Do I spend most of my day fighting fires instead of completing the vital few activities that will produce the greatest results… and the highest revenue?
Do I know specifically those few things I need to do daily that produce big results? Do I know how to match those few things with my unique abilities?
Do I know how to get rid of the minutiae that's controlling my everyday activities and taking up my valuable time and energy… and replace that minutiae with the high impact activities that immediately produces results for me and my business?
How can I learn to develop these critical skills?
Often times people ask me whether it is really possible for a business owner to work less and actually make more money? Is there a secret code or password that makes this magically happen, or is it being in the right place at the right time? My answer… none of the above.
In the end it always takes specific skills and strategies to make this happen and I would be honored to share my expertise with you… and help you achieve real results in your business.
To your success!
Simon Zryd, Productivity and Business Coach