If there’s anyone who knows about productivity, it’s guru Tim Ferriss. As an investor and author, he’s definitely opened the doors of productivity to millions of readers with his bestseller The 4-Hour Workweek. For those who want to get a productivity boost, today’s blog post is all about Tim’s recommendations for applying Pareto Efficiency. He encourages us to reward personal effectiveness over sacrifice. We should focus on results rather than time spent. Learn more about how applying Pareto’s Law can help you succeed as an entrepreneur.
As stated by Deppmann Lab ,"In the late 1800s Vilfred Pareto created a power-law probability distribution." The Pareto Principle has become increasingly popular in the context of economics and business. Ferriss explored this concept for personal efficiency. The way this principle applies to YOU is that 20% of what you do on a daily basis goes toward achieving your objectives. Wouldn’t it be awesome if you cut out the 80% and only focus on things that are “high leverage” for accomplishing those objectives?
The ‘80/20 principle’ gets its name from the theory that you can generate 80% of your results with only 20% of your efforts. Ferriss’ trick is to apply this brilliant principle to business. You might know a number of people that are complete time wasters. Forget them and focus on the 20% of staff members or customers that bring you most of your results. Ask yourself: What clients produce 80% of the revenue? What employees are the most efficient? Focus on them! What about the other 80% of team members or customers who keep wasting your precious time? Apply the auto-responder logic to them! This way, you’ll keep communication with these people to a minimum.
Pretty much everyone has their own productivity or efficiency booster that they swear by, from to-do lists to task management software apps. Even though they have their advantages, keeping Pareto’s Law front of mind will make a greater impact than any other tool. To properly analyze how productive you are using Pareto’s Law, just ask yourself: What 20% of tasks are creating 80% of my unhappiness and issues? What 20 percent of tasks are resulting in 80 percent or my happiness and desired outcomes?
“Being busy is a form of laziness - lazy thinking and indiscriminate action.” - Tim Ferriss
We hope these information and entrepreneur stories come in handy and that you can use this principle to succeed as a business owner. Start applying Pareto Efficiency today and your business will thrive! Using entrepreneur lessons and entrepreneur tips can not only help you start a business, but also help you with time management and general business lessons. You can also make a positive impact on your business by taking advantage of our high-end print marketing materials! Whether you are an aspiring entrepreneur or already a small business owner listening to some pieces of advice and business success stories can always help!