Despite its simplicity, the importance of the Pareto Principle should not be underestimated. Its name comes from the surname of the Italian economist Vilfredo Pareto who was the one to make such a conclusion after realizing that 80% of Italian land is in fact owned by 20% of the population. Since then, the rule became popular.
What is the 80/20 rule?
To put it simply, the Pareto Principle means that 20% of input creates 80% of the result. The remaining 80% of input will only give you 20% of the result. Knowing this, you can use the 80/20 rule to manage your time better as well as achieve both personal and career goals faster.
For instance, you can build your business in a way that prevents you from wasting time, effort and resources. Students can adhere to this principle by asking for academic writing help when they realize they are out of ideas.
How does the Pareto Principle work?
What is important to keep in mind is that the numbers don’t necessarily have to be 20% and 80%. For example, 20% of input can create only 10% of the result. So, it is significant to remember that these numbers do not often represent the actual state of affairs. The idea behind the concept is that nothing is distributed evenly in life.
No matter how much effort you put into something, some aspects will turn out to be more contributing than others. Take into consideration the following stats:
- 20% of customers create 80% of revenue
- 20% of features generate 80% of usage
- 20% of employees produce 80% of results
What you need to do before you get down to starting your own business, creating a new startup or even texting someone is to figure out what your vital few aspects are and to focus on them.
How The 20/80 Rule Can Change Your Life
The most significant insight is this: positive result often comes from a minority of inputs. The faster you realize this, the more productive you will become. What is more, it will also help you figure out how to get the most out of something even if you cannot put 100% of effort.
The whole point is to figure out which aspects are of major importance to you and to concentrate on making sure that 20% of the effort helps you get 80% of the result every single time you start something.
If you are a student who requires academic writing help or assistance from academic experts, the 20% of effort you should put into is to find reliable academic writing help services, especially when you are pressed for time and the task is really difficult. This way, what you will do is find one of the trustworthy academic writing help services the academic experts of which will provide you with tips on how to deal with an assignment in the fastest way possible.
Using the Pareto Principle to achieve success
If you want to get a clear understanding of how you can use the Pareto Principle to achieve success and to increase your efficiency, here are a few examples to take into account. If you have a company where 20% of employees bring 80% of the result, what you should do is focus on rewarding those workers. This way, they will be even more motivated to deliver impressive results. No matter what you do, learn how to concentrate on the 20% that helps you make a difference. The remaining 80% won’t add much. Thus, there is no need to prioritize it in the first place.
If you are a blogger, spend an hour coming up with ideas instead of writing a post on a topic pretty much everyone has already covered. Once you have that unique idea, crafting the actual blog post will not take long. Trust us, it really works. When you manage to come up with a killer issue to dwell upon, it does not matter whether you start your introduction with a quote or a personal story. What matters is the essence. Focus on that. Telling unique stories will help you gain a loyal audience that will enjoy reading your blog posts.
If you are a designer, make sure you have created a few layouts at the end of that one hour you have allocated on this process. Even if they look horrible at the beginning, simply ignore it. You will have time to make as many edits as required. What you need the most at this stage is to have a few options to choose from. Besides, it is always beneficial to have a couple of design ideas you can choose from rather than to have one and suddenly realize that it sucks.
If you are a student who has to cover tons of materials but has very little time to do that, spend the amount of time you have glacing a few articles and familiarizing yourself with the materials rather than focusing on one huge article.
Here’s why this option is going to work: by glancing through all necessary materials you will know for sure what each of them is about. Thus, it will be easier for you to figure out which ones will contribute to the research study you are currently conducting. So, choose those that you find most useful and spend the rest of your time studying them in detail.
All the examples mentioned above illustrate how the 80/20 rule works in detail. To use it to your own benefit, you need to figure out what can bring you 80% of the result and to focus on that activity.
How to Use The Pareto Principle in Business
If the success of your business is strongly dependent on customers (which is true for most businesses), you are aware of the fact that the 80% of the revenue you get is provided by 20% of your customers. Surely, you want to increase your revenue. The simplest way to do that is to find new customers that are like that 20% you already have. This is a superb tip your marketing team should definitely make use of.
If you manage to attract more customers that will help you generate revenue, you will never have to worry about other ways to make money doing business. Surely, such a scenario seems a bit idealistic, especially in a tough market where it is impossible to predict an outcome. Yet, what you need to do is to show that 20% of customers how much you value them.
This way, they will start telling others about the high quality of service/product you provide and about your company philosophy as well. The word of mouth is still an effective tool, especially in sales.
As soon as you notice that your business starts growing, figure out what aspects play the most significant role and focus on them. This way, you will manage to increase the number of loyal customers as well as generate revenue for the company. Your service/product should not be appealing to everyone.
Contrary to popular belief, having a successful company that makes profit is not about selling your product to everyone or being able to target every single customer on the market. The key point is to define who your target audience is. Find your 20% and focus on making sure they are always satisfied with the quality of services you provide. This is where the Pareto Principle really comes in handy as it helps you define who your 20% of loyal customers are.
In case you are interested in finding out how you can make this powerful tool work for you and your business, you should definitely check out the book “80/20 Sales and Marketing” by Peter Marshall. The author provides superb examples that help readers get a grasp of the principle as well as offers really useful steps for businesses to follow to increase their revenue. Applying the Pareto Principle in regards to your own business will help you take it to a whole new level.
What is vital to mention is that the Pareto Principle can be applied to almost any situation in life. Besides, understanding how this principle works helps you to delegate tasks, prioritize and focus on the most important aspects of your job or studies. In terms of business, the Pareto Principle has proven to be essential in strategic planning as it helps to define the areas which the company should concentrate on the most.
No matter whether you want to apply the Pareto Principle to your business or your life, here is a very simple exercise you should begin with: get a piece of paper and write down ten goals you wish to accomplish. Then, choose the most important one. After that, select the second most significant goal for you. That’s it, you have determined two most vital aspects you should focus on. You have found your 20%. Now, it is time to do the actual work and take steps to implement those ideas. Come up with a plan to have a clear understanding of what you need to do to achieve these aims.
The goals you have chosen are your most valuable tasks. Obviously, they are also the most difficult ones to complete. That is the reason why so many people make the mistake of focusing on low-value tasks instead of eating the frog first and figuring out how to solve a complex problem right away. The 80/20 rule presupposes that you will get down to work on those difficult tasks immediately as you will get 80% of the result by putting 20% of the effort at the beginning.
Before you get down to the accomplishment of any task, ask yourself the following questions: Is completing this task a part of my 20% priority list? Will accomplishing it help me get 80% of the result? If the answers are affirmative, keep going. The most useful piece of advice you should adhere to is to avoid dealing with small and unimportant things at the beginning. It won’t help you get any actual results. However, you will waste precious time focusing on activities that will not help you achieve your primary goal.