Pareto Principle.The secret to growing your business productivity
Upnify Editorial Team - 5 de mayo, 2023
A long time ago an Italian named Vilfredo Pareto made an astonishing discovery, 20% of the population owned 80% of the land. This principle is known as the Pareto Principle and applies to many areas, including business, and is one of the great secrets to a company’s success.
20% of an entrepreneur's priorities will give him 80% of his results and productivity.
Hence the importance of paying close attention to your daily priorities because this 20%, which we will call "daily focus", will produce 80% of your results. Daily focus" can be thought of as the time, energy, and money you invest in your business daily.
When an entrepreneur pays close attention to his or her "daily focus", he or she can achieve up to 400% return in productivity and business results.
Hence the importance of understanding and applying the Pareto Principle to both the entrepreneur and his work team.
To apply the Pareto Principle, you must first identify the 20% of those customers that represent 80% of your company's business. What would happen if you take care of these customers? Yes, I mean giving them better conditions, keeping them informed, and turning them into VIP customers. What do you imagine will happen? When they feel better-taken care of by your company, they will start buying more and more. Don't you think?
Now imagine that you identify the 20% of your best salespeople who generate 80% of your sales and you dedicate yourself to training them better, offering them better conditions and a system of rewards. What do you imagine will happen? The answer is simple, more and more sales.
What if you now identify the 20% of the best-selling products in your business, those that surely generate 80% of your sales and you dedicate yourself to promoting them better, advertising them more, or giving them some incentives or rewards? Do you agree that they will sell much more and your income will grow?
As you will see, the Pareto Principle is key to the growth of a business and the great secret to growing a business is that you as a leader and entrepreneur start to apply it to your business and above all to yourself.
To apply the Pareto Principle in your person the first thing we have to do is to first identify your personal 20%, that is, everything that will generate 80% of those results you have always dreamed of, I mean all those results you want for your life, to improve your quality of life, among these results will be sure that you become more productive, that your business grows and provides you with everything you've always dreamed of, like buying that house you love, make the trip you've always wanted, buy your family that clothes or items they want, etc.
Now it is time to increase your productivity, imagine that you take action and improve these critical areas, you start to train yourself better as an entrepreneur, read about leadership and business topics, attend workshops and conferences for business development, you train yourself on how to use your time better, to take care and improve your health and physical condition, to pay close attention to your thoughts and attitudes, you hire a coach to teach you about this topic and give you follow-up. What do you imagine will happen to you and your company if you use the Pareto Principle? The answer is that you will improve and grow a lot and so will your company.
Business Partners TIP:
Take action today, pay close attention to your "daily focus" on your personal 20%, analyze yourself, observe yourself, and start working with yourself on those critical areas that will generate 80% of your results and increase your productivity. Hire a business coach to teach you how to apply the Pareto Principle and follow up with you.
Upnify´s Editorial Team; formed by professionals and experts in Marketing, Sales, Communication, Design and other areas. They share their experience through articles enriching the commercial culture.