Advertising
Advertising

3 Reasons to Forget the 80/20 Rule and Focus on the 4 Percent

3 Reasons to Forget the 80/20 Rule and Focus on the 4 Percent

The number one mistake entrepreneurs make is that they don’t know the ROI (return on investment) of their time. As an entrepreneur I’m guilty of that as well. It’s easy to get distracted and focus on a billion things at once and not see much success from it. In fact, we feel compelled to dip our hands into many different projects.

It wasn’t until recently that I figured out how to leverage my time to see an insane ROI. I would never have figured it out if I hadn’t sat down with the Freedom Entrepreneur himself, Chris Duncan. Christopher Duncan is the embodiment of the freedom entrepreneur. In fact, that’s the slogan by which he lives. He works smarter and not harder which allows him to run eight companies- three of which do seven figures a year- and still be able to work wherever he wants.

    When he says that you can live a life with total freedom, that’s exactly what he means, but because people usually don’t know the ROI of their last hour or the ROI of their staff members they are not able to grow their businesses as fast as they’d like. The problem with not measuring output and productivity is that life can become an endless, unproductive hustle. Here’s a new concept I learned from Chris. Most entrepreneurs know the 80/20 rule- that 80% of your results will come from 20% of your efforts. However, if there’s an 80/20 rule then there must be an 80/20 of that 80/20 which is the 4% that will bring you 64% of your results. This means that you only need to know the needle movers of your business that make most of the difference. You don’t need to do everything else that people think they need to do.

    Advertising

    The 4% is what Chris calls the money-making activity. It’s what you can do repeatedly to make all the money. Here are three things you can do to make sure you’re utilising the 4% concept to its fullest potential.

    1. Anything outside of the 20% must be delegated.

    Now the question becomes how to figure out what that 4% is. The answer is quite simple. The 4% is the money-making activity which I mentioned above but if you don’t know what that is, you should track where you’re spending your time and what activities bring you the most money.

    Put a timer on your phone for every 30 minutes between the time you wake up and the time you go to bed. Every time the timer goes off, write down what you did that past half hour. The point is not to change your daily routine just because you have the alarm. The point is to track what you do on a daily basis so that you can figure out where you’re wasting your time and what you can delegate.

    Here’s an example.

    Advertising

    12:00 pm

    • Hired someone on Fiverr to make a media package form.
    • Created some part of form.
    • Wrote down services for future reference.
    • Created Google Drive for web developer w/ info.

    12:30 pm

    • Set up Calendly.
    • Created contact page w/ Calendly.

    1:00 pm

    • Talked with client about his press.
    • Scheduled more calls.
    • Friend came over.
    • Created my own form instead of Fiverr.

    This provides a clear picture of what you do day in and day out. You can eliminate the activities that aren’t beneficial for your business and delegate repetitive tasks that don’t do much to grow your business.

    Advertising

    2. The 4% is cashflow.

    The 4% is the needle movers in your business- the few activities that if you did more of would grow your business exponentially. Chances are if you track how you use your time, you’ll find that the 4% is cashflow. Make sure that the money coming into your business is more than the money going out of your business. This way your business will survive and thrive. If you don’t master cashflow then you will be simply getting by. After identifying what you should be doing and what should be delegated, you should do double what makes the money.

    It can be easy for entrepreneurs to get sidetracked by doing things that don’t yield many results. Here’s an example I recently found on Facebook that shows the difference in results by only focusing on what matters.

      Now instead of being busy he’s being productive.

      Advertising

      3. Double what works.

      Once you know that you should live by the 4% rule, you need to focus more of your time and energy on that. It’s one of the reasons successful entrepreneurs like Gary Vaynerchuk say that you should focus completely on your strengths- not your weaknesses. It’s the reason why other entrepreneurs tell their followers to increase what works. That’s the way to build a business faster.

      In the previous paragraphs I talked about how to identify what the 4% is and how to leverage it in your business. I’m going to use Chris as an example. Chris knew that in his business he was getting massive results- crushing 60K- by putting on webinars and not doing the traditional blog posts to generate leads. Since he knew this was the moneymaker for him, all he needed to do was to get more people on the webinar or put on more webinars to make more money. He grew his business to six-figure months by solely focusing on partnerships and webinars. Anything outside of that activity he hired or delegated.

      If you know that 4% of your efforts bring in most of the results, then you should double the amount of time you spend on the 4% to increase your results.

      Featured photo credit: http://www.huffingtonpost.com/ via huffingtonpost.com

      More by this author

      Adnan Manzoor

      Data Analyst & Life Coach

      50 Free Online Resources for Self-Motivated Learners How to Relieve A Toothache When A Dentist Isn’t Nearby? Say Goodbye to Sleepless Nights! 10 Essential Oils That Help You Sleep Soundly. Are You Obsessed with Your Sneakers? They Can Be The Cause of Smelly Feet 5 Simple Tips to Reduce Stress and Stop Anxiety Quickly

      Trending in Productivity

      1 10 Steps For Success: Applying The Power Of Your Subconscious Mind 2 How to Lead a Team More Effectively and Be a True Leader at Work 3 How to Live up to Your Full Potential and Succeed in Life 4 How to Find Your Blind Spots in Life and Turn Them Into Strengths 5 9 Best Productivity Journal and Planners To Get More Done In Less Time

      Read Next

      Advertising
      Advertising

      Last Updated on December 7, 2018

      10 Steps For Success: Applying The Power Of Your Subconscious Mind

      10 Steps For Success: Applying The Power Of Your Subconscious Mind

      How big is the gap between you and your success?

      What is the difference between successful people and unsuccessful people?

      It is as simple as this: successful people think and talk about what they are creating, and unsuccessful people focus on and talk about what they’re lacking.

      So how do you bridge that gap between wanting success and having your success? Let’s make an important distinction. You see, there is a big difference between “Wanting” and “Having” something.

      Wanting: means lacking or absent. Deficient in some part, thing or aspect.

      Advertising

      Having: means to possess, to hold, to get, to receive, to experience.

      You can have one OR the other, but not both at the same time with any particular object of your desire. You either have it or you don’t.

      When it comes to your subconscious, if you’re focusing on the “wanting”, i.e. the not having, guess what, you will build stronger neural networks in your brain around the “wanting.” However, through the power of your subconscious mind, you can focus on the “having” as if it has already happened. Research has shown that your brain doesn’t know the difference between what you’re visualizing inside your mind versus what is happening out there in your reality.

      This is a regular practice of elite athletes. They spend as much timing creating the internal mental imagery of their success playing out as they do actually physically practicing. This helps create both the neural pathways in their brain and the muscle memory to consistently deliver on that success.

      Here are 10 “brain hack” steps for success that you can take to create your version of a happy life. Make these steps a regular habit, and you will be astonished at the results.

      Advertising

      Step 1: Decide exactly what you want to create and have

      This is usually the biggest problem that people have. They don’t know what they want and then they’re surprised when they don’t get it.

      Step 2: Write down your goal clearly in every technicolor detail

      A goal that is not written down is merely a wish. When you write it down in full detail, you signal to your subconscious mind that you really want to accomplish this particular goal.

      Step 3: Write your goal in simple, present tense words

      …that a three year old can understand on a three-by-five index card and carry it with you. Read it each morning after you awake and just before you go to sleep.

      Step 4: Backwards planning

      See your goal achieved and identify all the steps required that it took to bring it to life. Making a list of all these steps intensifies your desire and deepens your belief that the attainment of the goal is already happening.

      Step 5: Resolve to take at least one step every day from one of the items on your list

      Do something every day, even if it is just one baby step, that moves you toward your goal so you can maintain your momentum.

      Advertising

      Step 6: Visualize your goal repeatedly

      See it in your mind’s eye as though it were already a reality. The more clear and vivid your mental picture of your goal, the faster it will come into your life.

      Step 7: Feel the feeling of success as if your goal were realized at this very moment

      Feel the emotion of happiness, satisfaction, and pleasure that you would have once you have achieved your goal. Visualize and feel this success for at least 20 seconds at a time.

      Step 8: “Fake it till you make it!”

      Confidently behave as if your subconscious mind was already bringing your goal into reality. Accept that you are moving toward your goal and it is moving toward you.

      Step 9: Relax your mind

      Take time to breathe, pray or mediate each day. Disengage the stress response and engage the relaxation response. A quiet state of mind allows your brain to access newly formed neural pathways.

      Step 10: Release your goal to your subconscious mind

      When you turn your goal over to the power of the universe and just get out of the way, you will always know the right actions to take at the right time.

      Advertising

      Starting today, try tapping into the incredible power of your subconscious mind.Start with just one goal or idea, and practice it continually until you succeed in achieving that goal. Make it a game and have fun with it! The more lightly you hold it, the easier it will be to achieve. By doing so, you will move from the “positive thinking” of the hopeful person to the “positive knowing” of the totally successful person.

      Hit reply and let me know what you’re creating!

      To your success!

      Featured photo credit: use-your-brain-markgraf via mrg.bz

      Read Next