Work Less, Do More | The 80/20 Rule Explained!
Ever heard of “do more by doing less?”
Do you sometimes feel overwhelmed by the amount of stuff you have to do?
Want to know how the top 1% gets more done in less time than anyone else?
They follow Pareto’s Principle (also known as the 80/20 rule) which is the theory that 80% of an outcome of a situation is generated by 20% of the total input.
This means that in order to do more, you must do less.
In this video I walk through what the Pareto Principle is, why it’s called the 80/20 rule, why less is more, how to actually get more done in less time, and specific examples of how I use this rule to govern my life.
Become The Entrepreneur You Always Wanted To Be
[00:00:01] What’s going on everyone? Ravi Abuvala, founder of ScalingWithSystems.com, where we help our clients make millions of dollars online while being hilariously profitable. And this exact law in principle I’m talking about you may have heard of before, it’s called the 80-20 rule or Pareto’s Principle. Now, like most really great things in life, it’s incredibly simple, you’ve probably heard it before, but yet you don’t implement it yourself. When I first heard of the 80-20 rule or Pareto’s Principle, it was actually in a book that I was reading and my life was honestly a total mess. I was working with all types of clients and all types of industries. I was offering them social media management, website design, content creation. I would’ve taken their kids to school if they asked me to. And I was honestly becoming very burnt out and I wasn’t making a whole lot of money doing it. On top of that, my general fulfillment level was really low. I was doing an incredible amount of work, wasn’t making any money. I didn’t have any time for family or personal life. I didn’t have any time for health, because I just kept on trying to do everything and have a whole lot of activity.
[00:01:00] Now, what the 80-20 rule essentially encompasses is that 80 percent of the results you’re looking for come from 20 percent of the actions you’re taking. Now, this general rule, Pareto’s Principle, pretty much applies to everything that you do in life. If you really look at it, you probably only where 20 percent of the clothes that you have in your closet, 80 percent of the time. Most likely, there’s really 20 percent of your customers that bring in 80 percent of the profits. And the list goes on and on and on. What most people don’t realize, especially entrepreneurs, in my experience, is that everybody has a finite amount of energy and willpower every single day. That means when you wake up in the morning until one you put your head down at night, you have a certain amount of energy you’re able to use. And if you’re doing every single thing without any kind of real awareness around what’s actually working and what’s not. You’ll end up like me, which is just totally burnt down and exhausted, not really ever moving the needle forward. So what can you do to fix this? Well, you should really start time auditing your day every 15 minutes or an hour if you don’t want to do that. You can pretty much write down what you did the past hour and what the results were from it. Also, you should be looking at lead generation strategies that you’re doing or even client fulfillment and figure out, hey, where are we getting the most bang for our buck?
[00:02:07] A few great examples of this was when I was really starting in launching my advertising agency, I was doing hundreds of cold calls, outbound e-mail messages about illington messages every single day, trying to get real estate agents, doctors, chiropractors, plastic surgeons, anybody who would give me a second of their time. But when I really broke down, who was responding back to me, I learned that most of the time it was actually real estate agents that were interested in working with me and that were signing on with me. And I was spending most of my time going after doctors and chiropractors and plastic surgeons because they took so much energy in order to even get them on the phone. I quickly changed my strategy to just focus on real estate agents. And within about one year we scaled the company to seven figures, meaning a million dollars plus in cash collected. But it didn’t stop there, right? Once I learned the 80-20 rule, I then applied it. Once I got the real estate agents. In the beginning, I was offering them website design, content creation, social media management, etc., etc. But when I really broke down, what was the core things that were actually helping them sell more homes, which is what they really wanted? I realized that the things were actually help them sell more homes, had more to do with just my advertisements that were going to a funnel and the funnel that would go to a qualification center and the qualification center that would actually pre qualify and book hot buyer and seller leads inside of the real estate agents calendar.
[00:03:23] Now, that set up in order for me to do it. I actually went from a four and a half hour setup to try to get their website optimized, get them these custom e-mail campaigns, get them all their social media content that I needed to do to me about four and a half hours, every single client. Once I figured out that, though, 20 percent of the stuff that I was doing, meaning that advertising campaign I set up in about 10 minutes and then delegated to my Virtual Assistant, that was actually producing 80 percent of the results. I cut out all the extra fluff. I just focused on that it became easier to explain it and sell it to the real estate agents. It became easier for them to get results, and it made me even more profitable in the end. So I would challenge you to really look at your personal life, your business life and your business as a whole and figure out where can I implement this 80-20 rule. There’s a good chance that 20 percent of your lead generation channels are really bringing in 80 percent of the leads. So you should focus more on those 20 percent of the channels. Right. Or there’s a good chance that 20 percent of your salespeople are really closing 80 percent of the deals. So you should focus on nurturing and growing those 20 percent of salespeople.
[00:04:24] You could find out on your personal life that 20 percent of the workouts you’re doing are really bringing in about 80 percent of the mass gains or weight loss that you’re looking for. And you can cut your workouts from two and a half hours down to under an hour like I did. The idea behind all of this is that, like I said to me in this video, you’re making more money. You’re doing it in less time, and you’re gonna have the free time and the enjoyment to actually live the life that you want to live all from following this super simple rule. Now, once you have implemented the Pareto Principle inside your business, once you figure out that 80-20, there’s a few additional steps you need to take. Okay, now that I know the 20 percent of the something you do, how do I amplify that 20 percent of the stuff? Or maybe Ravi, I don’t exactly know what the 20 percent of the stuff is, what are some of the things that I need to learn in my industry?
[00:05:06] Well, I get all these questions all the time, so I actually put together a free course where I walk you through the exact steps that I use or to take multiple companies to seven figures and under two years and at the exact steps that we use for over 500 clients inside of Scaling With Systems in order to help grow and scale their companies, making more money, having more impact and doing it in a lot less time. All you have to do in order to get this totally brand new free course is click the link down in my description and give me your email and you’ll have access to the entire thing. It’s about eight and a half hours worth of content. Finally, you guys got some value out of this. You want to see some more videos about Pareto’s Principle or Time Management or business in general? Please be sure to give this a thumbs up. Make sure you click the subscribe button, comment down below some other videos you want me to implement or any questions that you have about the 80-20 rule. Thank you guys so much for your time, I hope you have an incredible day.