Monday, October 23, 2006

"Apply the Age Old 80/20 Rule and Win"

The old rule goes, "80% of your profits come from 20% of your work, while 80% of the work you do, only accounts for 20% of your profits."

If we could find more of those Top 20% Clients, you'd agree I'm sure, that your profits would shoot through the roof - without increasing your workload by a tangible amount.

Furthermore, would it be possible then to do less of the tedious 80% work that doesn't give you much at the end of the day? I think so.

This is the perfect business world - what every business strives to accomplish - a client list of their perfect clients.

How can we accomplish this?

First, it really starts by knowing your perfect client. This is basic marketing stuff, I know you've heard it before, your "target market." But keep in mind, up until this point, your target market has also consisted of the other 80% clients who aren't "perfect." They too need your product or service, and your marketing strategies have been bringing them in. What you really must do is find out what your target TOP market is. How do they differ from the other 80%? Why do you like them better? Why do they like you? Why do they do business with you rather than your competition? Ask them! Find out as much as you can. The more you know about your perfect client, the easier it will be to spot them out in a crowd of 80 percenters.

Then, I say, apply the 80/20 rule to everything you do.

1. Do you give Thank You Gifts? Stop. Give 80/20 Gifts.

Your Top 20% Clients provide you with 4 times as much profit as the other 80%, and they should be thanked as such. Treat them with nicer gifts, and tell them why you appreciate their business 4 times as much. These are the ones you never want to loose.

2. Do you write and use a To Do List? Stop. Start using an 80/20 List.

Write out your to do list tomorrow, and then separate the top 20% most important things in a separate column and do those first. Tackle each day like this and you will get the tougher, more important things done, earlier and easier each day.

3. Do you do a Quarterly Marketing Review? Keep doing it. But now, apply the 80/20 Marketing Budget.

Do your review and focus on what is working. What initiatives are driving the 20% of your clients that you want? Put 80% of your marketing dollars on what is working, give the boot to the other not-so-hot initiatives, and use the other 20% of your funds to try something new and experimental.

These are just a couple off the top of my head examples, as to how you can apply the 80/20 strategy. There are many other facets of your business that would help you to achieve better results with less work. Find them, focus on improving them, and win.

All in all, if you want top results - focus on the activities that generate top results! It sounds simple, but day to day interruptions, and not so important "To Do" things always seem to get in our way. Don't let them, and apply the 80/20 rule to everything you do.


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