Not enough hours in the day to accomplish all of what your business requires?
Here are 3 less-is-more tactics to manage your time and dramatically grow your business.
The 80/20 rule:
The Pareto Principle, commonly referred to as the 80/20 Rule, is named after Vilfredo Pareto, an Italian economist who found, in the early 1900s, that 80% of the land in Italy was owned by 20% of the population. This may come as surprise to you but this distribution occurs frequently in all areas of life. It is also an incredible tool to grow your business.
Applied to your customers, according to the 80 / 20 rule, 20% of your customers generates 80% of your sales.
Why spend most of your energies on these customers that generate the least?
By identifying the characteristics of the top 20% of your customers, you can duplicate them through marketing strategies therefore increasing dramatically your sales and profits.
Value is in the eye of the beholder! Now that you have discovered who you really serve, your top 20% customers, you understand what they truly care about. Their hopes…aspirations…fears…frustrations. Use this information to shift your focus away from your mechanism (how you provide your solution) to create meaningful value for your target market.
Why spend time and resources to offer services, bells and whistles that your customers don’t care about?
Customers rarely buy what the company thinks it’s selling them. They buy satisfaction! To keep ahead of the curve, this is a constant quest to identify opportunities for your company to innovate by discovering what problems your customers cannot adequately solve today and continuously improving your offering.
This last less-is-more strategy is probably the most impactful: focus on fewer important things you excel at. As an entrepreneur you have a lot to juggle, which of course becomes rapidly overwhelming. But more importantly, it’s time to admit you can’t do it all! In this connected market of very educated customers with a vast amount of information at their fingertips, mediocrity doesn’t cut it anymore. Identify your strengths and hire talented professionals to handle the areas of business where you need the most support.
How much more successful would you be if you could focus 90% or greater of all your energies on what moves your needle?
Furthermore, with a shorter list of tasks and/or projects to handle, the execution becomes easier. With less KPIs (Key Performance Indicators) to monitor, accountability is clear. You had an objective. What was the outcome i.e. how did you do?
The bottom line is that you don’t grow your business by doing more of the same. You grow your business by doing less at the highest of level.
Author: Carine Dieudé, Partner, Director of Strategy, specializes in growth and exit strategies, systems and operations, for small and medium size businesses.
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