July 24, 2024

Earn Money

Business Life

The 80/20 Business Strategy

I’ve spoken with hundreds of small business owners, and almost every single one was looking for more revenue. (The ones that weren’t were usually looking to create an exit plan.) Having done tons of business assessments, it’s surprising to realize that just a couple of strategies, executed effectively, can put hundreds to thousands of dollars to their bottom line.

Last week I was speaking to a mortgage company, and I asked what their biggest challenge was for 2022. And their answer was “people.” I said, “tell me about your hiring process.” And I quickly realized they didn’t have one. So we spent the better part of an afternoon crafting one together.

And that’s just one area that business need help with strategies.

The challenge is, which strategies, and which actions will give you the biggest bang for the buck? But hey, it’s not the business owner’s fault. Most of us don’t have MBAs. What we’re good at is the thing that we sell. And no one has ever come along side of us to help us learn the best business building strategies.

Most business owners I speak with are busy running their business and get lost or overwhelmed with all the choices out there. Websites, social media, SEO, email marketing, direct mail, etc.

However, what surprises most business owners, is how the 80/20 rule affects their business. 20% of what they do every day generates 80% of their annual revenue. The 80/20 rule also means that to grow your revenue, you must identify the 20% of your business can create 80% of your new revenue.

And when you know where to look, the 20% becomes simple.