The Pareto Principle, or the 80/20 rule, has become a term bandied about by a huge raft of people, to help define their behaviour and work habits. My favourite example would have to be the fitness instructor who often uses it to excuse anything that isn’t on her healthy eating list (cigars, beers, whisky and organic chocolate) should she be caught indulging (on an all too regular basis).
I’ve applied it myself as a general rule each year, as I’ve built up my own business. When the recession saw me lose a large number of previously steady clients, I had no option but to recoup, and refocus. My approach was simple – do what ever it took to survive and follow the money.
Yet this strategy creates only a limited long term success. By the end of 2010, I had repaid some recession based debt, and had successfully built several new revenue streams. However, I also felt exhausted, fragmented and completely divided on how to grow my business from here.
That’s where Jonathan stepped in. The irony of utilising his help is that he essentially took me through the same sort of process I’ve often worked through with my own clients, but was unable to do for myself. In a small business it can very difficult to take a step back independentally. It’s essential to take time out to reassess and refocus. Allowing yourself time to reflect, evaluate and then re-strategise your business model helps identify any issues, and eliminates dead wood.
It required some work on my part first, setting down all the different elements of my business (and as I’d proudly self marketed myself as an octopus with a finger in every pie that was no mean feat!). I then wrote down some of the key components under each section. This included the annual revenue from each, the time each took from my week’s work, and if there were any connections between the tasks that made the process easier (such as whether one project added value to another).
For a creative/entrepreneurial type, setting down my own ideas on paper is a discipline I don’t especially enjoy. I spend a large amount of my time helping other business owners translate their own ideas into something cohesive and straightforward. Doing them same for myself feels like pulling teeth.
Before I’d even got to the initial meeting with Jonathan, a few things were clear. In writing down the positives and negatives of each task, I had seen a few patterns emerge. The work that took the most energy was also the work that brought in the least income. That good old Pareto Principle at work again!
Do you struggle to put your planning, structure and strategies down on paper? Or does that side come naturally to you?
In the coming weeks we’d like to take you through the processes of making your business sharper, more strategised and more successful. We’d love to hear your own experiences and let us know if there are any burning topics you’d love to cover.
Author: Rachel Goodchild
