We all know that management is very important for your business. You have limited resources such as time, money, and energy so you have to learn how to manage them properly. The 80-20 Rule or The Pareto Principle is a productivity tool we can start using today which can help us manage our time more efficiently by focusing on the tasks which are most important for our growth and success.
The Pareto Principle or 80/20 rule is a simple concept that can help you to focus on the essential tasks in your business. It's also a great way to determine how much time and energy you should be spending on a project.
The Pareto Principle on the idea that 80% of the results come from 20% of the effort. In other words, for every 20 hours of work, only 1 hour produces 80% of the results. That's why it's called the 80/20 Rule.
The key is identifying which activities produce the greatest return on investment when done well or eliminated. So they don't get bogged down with lesser tasks that don't provide a return on investment.
Here are some Tips for applying this Principle:
1. List out your top 20 priorities by category or type. For example, if you're a graphic designer, your top priorities would be client meetings, project management, and marketing materials.
2. Break down each task into smaller ones - big or small - so that when completed one at a time, it will feel less daunting than if you were trying to do them all at once.
3. Use spreadsheets or other tools such as Google Docs to track progress to set realistic deadlines for yourself and others involved in completing each task on your list. Be sure not to put too much pressure on yourself or others by setting unrealistic deadlines; otherwise, people will become frustrated with their inability to meet them.
Applying the 80/20 rule when looking at your finances or business decisions is easy.
For example, if you're considering buying a new car, you can use the 80/20 rule to see how long it will take before you break even on the investment. If it takes more than four years, you should consider selling your current car and buying something else.
The same principle works for other investments, like buying stocks or starting an online business, and even determining which industries are still growing and struggling. The 80/20 rule can also manage your time efficiently so that you don't waste time on activities that are unimportant or worth the effort involved.