Do you want to follow a different path for your business? Are you trying to figure out a way to increase your profit in the business? Well, there is a magical spell just for you that will help to increase your financial gain in the business.
Pareto's Principle is the secret spell. It is an amazing method which is adopted by many successful entrepreneurs. The 80/20 rule relationship can be explained in various ways such that,
1.About 80% of the effects are due to 20% of the causes
2.80% of the business's interest is gained by 20% of the customers
3. 80% of the sales are by 20% of the company's products
So, this 20% is not to be taken lightly. You need to start focusing on this 20% for the success of your business.
For applying this 80/20 rule in your business, you need to consider the following points.
·Distribute 80% of your tasks
To apply Pareto's phenomenon in your business, you need to first apply it your everyday tasks. Make a list of the activities which result in 80% of your net profit. Now you need to focus all your energies on these activities. The remaining tasks that make up the rest of the 80% should also not be completely avoided. Distribute that work among your workers. You will soon realize the advantage of focusing completely on the tasks that bring you most benefit.
·Advertise to attract clients
You need to take into account the problems clients face and the purpose they have that makes them come to you. Write down the 20% of the reasons and focus on advertising them to seek more customers. It is of no doubt that the focus on the important 20% reasons will attract comparatively more clients.
·Staff is not to be ignored
While applying the 80/20 rule, you also need to consider the staff's activities that bring you 80% of the benefit, and make them focus on those 20% of the tasks. This Pareto's principle will give you the best results not only for you but everyone associated with your company will practice it.
·Customers need to be kept happy
You need to satisfy your customers in every way possible especially those 20% of your clients that provide you with 80% of your profit. In the business there are different ways to deal with different people, and obviously the important clients know their worth so they need to be satisfied by your services so that they may never even think of leaving your company. Attract such customers through surprise gifts and advantages by your company.
·Pre-plan your activities
You need to plan your business strategies. Pre-plan all the solutions to eliminate or reduce the 20% problems of your clients that cause 80% of stress. Pre-planning will reduce the business pressure not only on you but also your workers. Clients will also be more satisfied by your confident attitude, which is due to your pre-planning.
So, apply Pareto's Principle in the entrepreneurship, and start your journey on the road to ultimate success.