Time is the entrepreneur’s most important resource, and learning to leverage time is key to becoming an entrepreneur.
Most people never learn to leverage time. Employees, for example, do not typically control time but are controlled by time. That is, the employee shows up at 9am and cannot leave until 5pm.
To become a successful entrepreneur, you must learn to take control of time and to prevent it from taking control over you.
Enter Mr. Pareto.
The Pareto principle – known more commonly as the 80-20 rule – states that 80% of your output comes from 20% of your input. (Or, 80% of the profit comes from 20% of your customers, etc.)
The 80/20 rule is indispensable in entrepreneurship primarily because it very quickly reveals the most productive parts of your business operations.
Here’s a quick way to apply the Pareto principle to your business activities right now: Simply ask yourself, “What are the top 10 things I need to do each day to build my business?”
Once you generate this list, quickly look it over and force yourself to identify the top two things that would generate the most results if you could only do two things. That’s right: JUST two!
This exercise will force you into the 20% that produces 80% for you. You’ll soon discover just how much time you actually waste each day.
Of course, you may do many things every day that are not necessarily a waste of time, but do not truly contribute to the advancement of your key projects. For example, I often am forced to postpone writing for this blog because it is not a 20% key producer in my overall business structure. This is not to say that I don’t value this part of my business or that it’s not important, only that it is not always a top priority. After all, how could I write about entrepreneurship if I do not make business-building a priority?
Here are some more ideas for implementing the 80/20 rule at your stage of the game:
- If you’re an employee looking to become an entrepreneur, use 80/20 to improve productivity on and off the job as you begin to free yourself from the chains of time-based employment.
- If you’re in the beginning stages of entrepreneurship, use 80/20 to focus your time on the projects and ideas that are actually working to generate profit.
- If you’re an established entrepreneur, use 80/20 to enhance and develop existing projects for greater results.
