Newsletter #24 What is the One thing you can do to boost your business?
Last week we talked about Strategic Planning Question #1 What will you stop doing in 2014? This week we focus on Strategic Planning Question #2 What is the one thing you can do this year to Build your Bankruptcy Business? In other words, which area, if you focused on it, would bring you the most results for your business?
For each firm this answer will be different. Today’s exercise is similar to last week’s as it requires reflection on the past while looking to the future.
On the following list, which is the most important for you in 2014?
To gain More clients
To gain More income
To gain More social media
To gain More Bankruptcy knowledge
To gain More referral sources
To gain More accountability
To gain More clarity
To gain More time
Or something not on the list
If you choose “To gain More time” in the new year, there are many things you can do, but what would be the one thing that would create the most time for you in the new year?
Here is a tool to use in tackling that focus area:
The Pareto Principle or the 80-20 Rule
Wikipedia describes “The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.
It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients”.
If your focus for the new year is for More time…
Which activities over the last month caused 80% of your wasted time?
Too much internet wandering?
Too much doing tasks some one else could do?
Not being organized?
Not having a plan?
For each of us, the answer to wasting time will be different as to which activities wasted the most time. 80% of my wasted time comes from wandering aimlessly over the internet. If I want to cut down on my wasted time, which I do, then I should focus on my internet and computer use. This focus will contribute disproportionately to the success in cutting down my wasted time.
If your focus for the new year is for More Income…
Look back over the year and track your business, you may find that most of the people that came to you came from one or two sources. 80% of your business probably came from 20% of your clients.
Wikipedia further stated: “The Pareto principle was a prominent part of the 2007 The 4-Hour Workweek by Tim Ferriss. Ferriss recommended focusing one’s attention on those 20% of customers who contribute 80% of the income. More notably, he also recommends ‘firing’ – refusing to do business with – those 20% of customers who take up the majority of one’s time and cause the most trouble.”
Strategic Planning Question #2
What is the one thing you can do this year to Build your Bankruptcy Business?