Partners

Partners

Partners

If the evolution of Tom Peters’ idea is that we take full ownership of our talents as individuals, then starting a business to capitalize on our skills or knowledge makes perfect sense, and millions of people are choosing to do it.

Was your dream to be recognized for your skill and work on projects of your choosing to deliver amazing value for a great price, focusing on the thing you love doing, without any of the nonsense of corporate politics and many petty managers?

Now that you own your own business, you are suddenly in charge of IT, HR, Finance, Sales, Marketing, Operations and making coffee. Instead of magnifying your personal value, is not it diluting you to the point of exhaustion and frustration?

The 80/20 Rule or Pareto Principle

There is a scientific law, proven in business and economics, that states that the great majority of results come from a small minority of causes or effort. Widely known as the “Pareto Principle,” it is also called the “80/20 Principle” because it reflects the fact that about 80% of results flow from 20% of causes.

Worldwide, 80% of small businesses are struggling to make $500K a year and are absolutely stuck in this loop. This rule works in almost every area of your life: 20% of your clients will result in 80% of your profits. This rule can also be applied to itself. If 20% of your people produce 80% of the results, then 4% (20% of the 20%) of your work results in 64% (80% of the 80%) of your results. Applied again: 1% of your work roughly creates 50% of your results.

In a business sense, finding the 80/20 ratios is crucial for maximizing performance. Find the products or services that generate the most income (the 20 percent) and drop the rest (the 80 percent) that only provide marginal benefits. Spend your time working on the parts of the business that you can improve significantly with your core skills and leave the tasks that are outside your best 20 percent to other people. Work hardest on elements that work hardest for you. Reward the best employees well, cull the worst. Drop the bad clients and focus on upselling and improving service to the best clients.

5 secrets to Live an 80/20 Lifestyle

  1. Live in the present
  2. Make a “Not-to-Do” list
  3. Be eccentric with your time
  4. Find your Happiness Islands
  5. Nurture the significant relationships in your life

Shouldn't you, as one of a few 80/20 battle survivors, be working on things you are good at, like dealing with cool clients and bringing on cool team members? You should not have to do other stuff. This is where partnerships comes in.

The 80/20 Action Plan


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Potential Partnerships

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Agglomeration

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