To start with the basics, the 80/20 rule, widely known as the Pareto Principle, is a concept that suggests that 80% of consequences come from 20% of the causes. In other words, out of ten items that you have on your list, two of them will likely be more valuable than of the other eight put together.
When you drill deeper, the 80/20 principle also applies to other things as well. For instance, 80% of your problems will come from 20% of your clients or that 80% of your revenue will come from 20% of your customers. So, how do we apply that towards improving your brand?
No matter what kind of business you run, you should try to focus as much as possible on the big 20. Sometimes, these big tasks that occupy the 20% of the Pareto Principle, are also the hardest tasks to complete – but the rewards are great.
When designing your business, a clear brainstorming session is a must. Which part is going to bring you the most input, with the least amount of output going towards it. For example, if you’re selling Cybersecurity software, then it is most likely that 80% of your income will come from 20% of your clients who may be big corporations. The other 80% of your clients will likely be smaller brands who want most service and give you the big headaches that come along with that.
Sometimes, you have to cut your losses. There will be clients, customers and situations that absorb your entire bandwith, demanding 80% of your attention while your ROI is non-existant. In this case, the best example to look towards are the French – where the customer is ALWAYS wrong.
In order to optimise your time, and be a success, it is necessary to diminish the amount of energy you devote to those items which bring you the least.
At Starting Dimensions, we focus on your brand as a whole. That means that your brand goes beyond your visuals, and includes everything from the people you employ, to your voicemail, collateral and company culture. So, the question you have to ask yourself is – which 20% part of my brand will bring me 80% success.
If you believe that your social promotions will bring in 80% of your revenue, then by all means focus on these. If you think that it will be your excellent customer service that retains clients and leads to referrals, put your energy towards that.
However, this does not mean that you skimp on the other side of things. Just because you concentrate on your socials, it does not mean you can have a poor website or lazy company culture. All the parts of the jigsaw must fit, but the time you devote to each much be used wisely.
If you really want to master the 80/20 rule and apply it to your life and brand, then you must read the book. From how to find the best employees, to optimising your workflows – this is all covered in the myriad of books published on the subject. And if you can’t decide which one to start with, then we recommend this one for small businesses and startup.
The 80/20 principle is something that can be applied to your entire life. It is a way to channel your energies towards success, and ensure you have the best ROI for your time. It is something we absolutely embrace at Starting Dimensions and work with small brands, individuals and startups to instil within their brand.