📈 I f*ckin love the 80-20 rule

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I f*ckin love the 80-20 rule.

But frankly, I sometimes forget about it.

As a business owner, you’re often stuck in the trenches, trying to escape.

You’re the living embodiment of the duck analogy.

The top half of a duck appears calm above water, but underneath the surface, you’re frantically trying to stay afloat.

I get it. I’ve been there…

In fact, I’m there right now (it’s the busy season for my startup).

So it’s easy to forget about a principal like the 80-20 rule.

Anyway, here it is.

Understanding the 80-20 Rule

The 80-20 rule states that roughly 80% of the effects come from 20% of the causes.

(read that again)

The principle can apply to anything, not just business.

Some examples might make it clearer:

1. 80% of revenue comes from the top 20% of clients.

2. 80% of your personal expenses come from 20% of your spending categories.

3. 80% of employee productivity comes from the top 20% of employees.

4. You wear 20% of your wardrobe 80% of the time.

How do you take advantage of the 80-20 rule?

1. Identify the key areas that will have the most significant impact. I like to call these key areas “The 20%”.

2. Spend an outsized amount of time focusing on these areas.

3. Delegate (or begin to delegate) the rest.

Easy to read, hard to do.

A quick (but relevant) note about my experience with delegation:

I’ve run my company for 5 years. For the first 3, I wore every hat in the business.

• Customer Support

• Marketing

• Hiring

• Management

• Operations

• Bookkeeping

I did literally everything in the business.

But I quickly realized that I was becoming a bottleneck for my own company.

The business couldn’t grow the way I wanted with me doing every job.

So I put an end to that two years ago.

I began firing myself from every position I possibly could.

I’m not done yet, but I no longer spend time on:

• Customer Support

• Marketing

• Bookkeeping

Delegating these tasks to others has allowed me to focus on the more important things…

The big picture projects that actually move the needle….

AKA, The 20%.

So take a few minutes to really think about what will move the needle for your business.

That is what deserves your immediate focus, not the email you just got from a nitpicking client.

PS. I changed up my writing style a bit in this newsletter.

Instead of the typical uptight / proper writing, I decided to write how I talk.

I decided to write how I post on Twitter (almost at 9,000 followers now).

If you liked it (or disliked it) please let me know by clicking a hyperlink below ↓

PPS. I had way more fun writing this newsletter. I hope you enjoyed it!

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Cheers,

Collin Rutherford