Less efforts, more earnings: Paretos’ law

I know, I know, you haven’t heard from me for over a month. The reason is a lot of work.

I managed to expand my business even further, offering not only Italian lessons but also English lessons in my language school in Stockholm.

Besides, I contributed to the success of new businesses by teaching young digital entrepreneurs the tricks of digital marketing.

Last but not least, I made my biggest dream come true: a villa by the sea. And this I owe not only to myself but also to the hard work of the entrepreneurs I follow who have reached very high peaks.

Anyone passionate about their work throws themselves headlong without saving themselves on any front: energy, time, and money invested.

I think it’s part of that driving force called passion.

Passion allows us to live and beyond: if channeled correctly, it will enable us to transform it into work.

Do what you love, and you will not work a single day of your life

said the wise Confucius

But how are our efforts used? What criteria should we use to cut the waste of our energy and above all of our potential?

In this regard, various theories, systems, and notions have been developed.

One is given to me by the Pareto principle, specifically law 80/20.

It seems incredible, but according to this theory, only 20% of customers will generate about 80% of profits.

Just as 20% of the products will allow us to obtain 80% of the sales.

Instead of trying to find ways to be omnipresent, full of content, of products, it is better to stop, establish, and observe the progress of the product/service that you offer.

In summary: focus your efforts.

It is imperative to analyze and self-analyze.

Let’s briefly see how to put Pareto’s law into practice:

If your business is already started, you will need to tap into history

Analyze sales in hand, which products/services have been most successful among your customers.

Which products were most requested and approved by your customers?

Which idea was brilliant?

How much have possible promotions or advertising activities influenced?

If, on the other hand, you are starting your business…

you have no data, to begin with for an attack plan, don’t worry! You can move with a market test and studying the competitors.

In summary:

1) Establish your target, try to insert your ideas, your products, and observe.

2) Collect as much data as possible to understand consents you receive or even dissent.

In addition to observing which products/services are most successful, it will be essential to understand which ones are the least successful and avoid spending energy and economic investments.

3) Boost time and money invested in the most successful services.

4) Cut decisively time and energy dedicated to the services that have rendered less, in terms of consents and profits.

Now that you have discovered what should be enhanced and what should be cut, do you feel ready to flourish thanks to Pareto’s law?

Remember: Understand what your 20 is to surpass 100.

Good job!

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