Is Your Business Success Predicated on the 80/20 Principal?
Why is it that there are business rules that are never questioned like the 80/20 rule, (http://en.wikipedia.org/wiki/Pareto_principle?) You know the one. It states, “80 percent of your business comes from 20 percent of what you do.” What would happen if 80 percent of what you did led to 100 percent of your business, and the other 20 percent of your day was left to having your fun meter on maximum?
When I observe my most successful clients the 80/20 rule definitely does not apply to them. Those who are earning in excess of six figures, offering small business products and services, cannot afford to follow the 80/20 rule. These are individual leaders of small companies and entrepreneurs in the truest sense. For them the rule should read, “80 percent of their business comes from focused, measured activity so that they can have a life after the work day is done.”
Continuing along the line of my observation, the clients who earn six figures and more are knowingly repeating success. They go into an activity:
- anticipating an outcome such as
- Financial reward
- Number of products sold
- Time limitation to give the client what they want
- defining success before investing time in an activity
- knowing before they invest their time what is the likelihood of creating success
- qualifying participants and their offer
- doing their homework to get in front of their pure market
Many of these folks work long hours so they can earn high six and seven figure incomes, yet they also get to play hard when they choose to take downtime. They get to take exotic vacations or workcations. They get to work as they travel to exotic destinations to do business. It is the lifestyle that those who believe In the 80/20 rule dream about yet rarely realize.
With further study, the concept I am sharing becomes much clearer. Just look around and you will see example after example of how people create success. I love to use the example of successful network marketing business professionals to make this point. You know who they are. Some refer to them as multi-level marketers while others prefer direct marketing. Most of my “real” business entrepreneurs, professionals with letters after their names, having multiple degrees, shy away from the lessons learned from this group of entrepreneurs because 80 percent of network marketers (and probably more) are less than successful. It appears that less than 20 percent of those who are network marketers (my guess is that it is probably closer to two to four percent) are successful. Here is the answer for anyone wanting to create a six figure income in network marketing; successful network marketers only invest their time with intention, doing things that produce positive results all the time. If ever I am asked by a newbie to network marketing, “How can I create a six figure income?” My reply is always, “Find someone who is earning six figures, and do what they are doing!”
Now the problem for those who have degrees and letters behind their names is they are stuck doing the same things their industries have always done but expecting different results. As I have studied this phenomenon I see the same pattern repeating itself over and over again. The patterns include:
- Find a different trainer to train the team to use the same marketing system a different way
- Create a new product or service offer and then employ the old marketing strategies
- Hire a marketing company to market the same way as the business has been taught before
- Find a new sales manager
- Search for an industry “expert”
- to assess the company’s systems,
- write a report
- implement changes
- still nothing works
Yet the answers are simple. With any company that can point to a single success, they must ask and answer the question, “How did we create previous success?” For those who are struggling to succeed they must ask/answer the question, “What results do we want to deliver?” From there, those wanting to create success must then move on to ask/answering:
- What does success look like?
- Who is our target market or market match?
- What do we need to anticipate results we want?
- What are the steps to get us closer to the results we desire?
They then need to write the results of their questions down and continue to evaluate the results. Evaluation of their efforts needs to be recorded daily. Once data points have been taken in a 30 day period, they also must be evaluated again and again.
Gerry Rose runs INTEGRITY Networking Solutions in Oceanside, CA. He works with people in business who want to attract the right prospects and generate more referrals. More than 10,000 businesses have been presented the INTEGRITY Networking Solutions system in San Diego, Los Angeles, Riverside, and Orange Counties.
Gerry’s stimulating presentation Unlimited Prospects, Unlimited Referrals is ideally suited for small business owners, home-based businesses, and independent professionals who want clearer direction and want to attract more prospects, develop dynamic systems, and strengthen their companies’ accountability. Gerry does one on one consulting, conducts a range of keynote speeches from thirty minutes to full-day education workshops. His book series, Unlimited Prospects, Unlimited Referrals, are available on the website, www.integritysd.com.
Gerry has more than 20 years’ experience directing business owners how to grow their businesses. He is a networking dynamo. Those who know him will assure you that he does a great job of bringing people together—which is why he started INTEGRITY.
Involved with networking organizations since 1984, Gerry is a Distinguished Toastmaster, a member of Toastmaster International, and has chaired numerous chambers of commerce and non-profit organizations.
Are you truly committed to attracting the right prospects and generate more referrals? If so then contact INTEGRITY Networking Solutions for availability and information. You can contact Gerry by mail at 1610 Quiet Hills Drive, Oceanside, CA 92056. Direct dial (760) 439-4623; e-mail to gerry@integritysd.com. For more information, go to www.integritysd.com
