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 Get A Cheap Root Canal Hot-Desking: Should You Dodge this New Trend? How To Measure The Performance Of Your Marketing Efforts 7 Ways to Apply Risk Management to Your Personal Life

      Trending in Productivity

      1 5 Reasons for Your Facebook Addiction (and How to Break It) 2 The Secret of Success to Achieving Anything You Want Revealed 3 Do What You Love and Love What You Do to Achieve More 4 How to Wake Up Early: 6 Things Early Risers Do 5 How to Set Professional Development Goals for Success

      Read Next

      Advertising
      Advertising
      Advertising

      Last Updated on September 23, 2020

      5 Reasons for Your Facebook Addiction (and How to Break It)

      5 Reasons for Your Facebook Addiction (and How to Break It)

      Facebook is embedded into lives around the world. We use it to connect with friends, share important milestones, and check in with the news. However, what may seem like harmless scrolling can become harmful if it takes up inordinate amounts of time and turns into a Facebook addiction.

      The first step to breaking any bad habit is to understand the symptoms and psychological triggers that made you pick up the habit in the first place. Below you’ll find the common causes, and the good news is that, once you’ve identified them, you can implement specific strategies to get over your Facebook addiction.

      Symptoms of a Facebook Addiction

      Do you find that the first thing you do when you wake up is grab your phone and scroll through Facebook? Is it the last thing you see before falling asleep? You may have a Facebook addiction. Here are some more of the signs and symptoms[1]:

      • You end up spending hours on Facebook, even when you don’t mean to.
      • You use Facebook to escape problems or change your mood.
      • You go to sleep later because you’re glued to your screen.
      • Your relationships are suffering because you spend more time on your phone than you do talking with the people you care about.
      • You automatically pull out your phone when you have free time.

      You can check out this TED Talk by Tristan Harris to understand how Facebook and other social media gain and hold our attention:

      Psychological Reasons for a Facebook Addiction

      A compulsive Facebook addiction doesn’t come out of nowhere. There are often root causes that push you into Facebook, which can ultimately manifest as an addiction once you become dependent on it. Here are some of the common causes.

      Procrastination

      Facebook can cause procrastination, but many times, your tendency to procrastinate can lead you to scrolling through your Facebook feed.

      Facebook capitalizes on your tendency to procrastinate[2] by incorporating a news feed with an infinite scroll. No matter how far down you go, there will always be more memes and status updates to keep you distracted from whatever you should be doing.

      Advertising

      Thus, it might be helpful to change your perception of Facebook. Instead of looking at it like a place to be social or kill time, frame Facebook as the enemy of your productivity and purpose. Doesn’t sound as tempting now, right?

      Loneliness or Indecision

      Facebook resembles a boring reality TV show that is on full display during every hour of the day. Do you really need to tell everybody what you ate for lunch? I doubt it.

      You don’t share such trivial details to add value to people’s lives. You’re likely doing it because you’re lonely and in need of attention or approval[3].

      Seeking opinions from your friends could be a sign of indecision or low self-confidence. If you get a bad suggestion, then you can conveniently blame somebody else, thus protecting your ego.

      Social Comparisons

      Social comparison is a natural part of being human[4]. We need to know where we stand in order to judge our rank among our peers. And Facebook has made this all too easy.

      When we get into Facebook, our brains are bombarded by hundreds of people to compare ourselves to. We see our cousin’s amazing vacation to Europe, our friend’s adorable baby, our brother’s new puppy, etc. Everything looks better than what we have because, of course, people are only going to post the best parts.

      This extreme form of social comparison with a Facebook addiction can, unfortunately, lead to depression. One study pointed out that “people feel depressed after spending a great deal of time on Facebook because they feel badly when comparing themselves to others”[5].

      Advertising

      People-Pleasing

      Facebook takes advantage of your desire for instant gratification[6]. Your brain receives a dopamine hit every time you see that red notification light up. Dopamine is a chemical in your brain that causes you to seek pleasure from things.

      Pleasure sounds nice in theory, but dopamine is responsible for self-destructive behavior if overproduced. Thus, becoming a slave to your notifications can destroy your self-control in a hurry.

      If that wasn’t bad enough, the human desire to be liked and accepted is at play, too. Every time you get a “Like,” your brain decides that means somebody likes you. Keep this up and you’ll turn into an addict desperate for another “hit.”

      Fear of Missing out (FOMO)

      Facebook wrecks your focus by preying on your fear of missing out. You check your Facebook feed during a date because you don’t want to miss any interesting updates. You check your messages while you drive because a friend might have something exciting to share.

      One study found that “a high level of fear of missing out and high narcissism are predictors of Facebook intrusion, while a low level of fear of missing out and high narcissism are related to satisfaction with life”[7].

      Therefore, while you may feel temporarily glad that you didn’t miss something, research shows that FOMO will actually reduce your overall life satisfaction.

      How to Break a Facebook Addiction

      Now that you know some of the causes of a Facebook addiction, you may be ready to break it. If so, follow these 5 steps to get over your addiction and improve your mental health.

      Advertising

      1. Admit the Addiction

      You can’t fix a problem if you deny it exists. Don’t beat yourself up, but do try and be honest enough to admit you’re a Facebook addict. If it makes you feel any better, I’m a recovering addict myself. There is no reason to be ashamed.

      Telling a trusted friend might help you stay accountable, especially if they share your goal.

      2. Be Mindful of Triggers

      In order to discover the triggers that lead you to use Facebook, ask yourself the following questions. It may be helpful to write them down at a journal.

      • What did I do? (scrolling, sharing, notification checking, etc.)
      • When did I do it? (down-time at work, as soon as you woke up, right before bed, on a date, etc.)
      • What happened right before? (a stressful event, boredom, etc.)
      • How did this make me feel? (stressed, anxious, sad, angry, etc.)

      Once you’re aware of what pushes you to use Facebook, you can work on tackling those specific things to get over your Facebook addiction.

      3. Learn to Recognize the Urge

      Every time you feel the urge to update your status or check your feed, recognize that impulse for what it is (a habitual behavior—NOT a conscious decision). This is especially powerful when you complete step 2 because you’ll be able to make a mental note of the specific psychological trigger at play.

      Have a plan for when you feel the desire to use Facebook. For example, if you know you use it when you’re bored, plan to practice a hobby instead. If you use it when you’re stressed, create a relaxation routine instead of jumping on Facebook.

      4. Practice Self-Compassion

      Facebook is an epic time-suck, but that doesn’t mean you should criticize yourself every time you log-on to your feed. Beating yourself up will make you feel bad about yourself, which will ironically cause you to be even more tempted.

      Advertising

      Self-loathing can only lead to failure. You might end up deciding it’s hopeless because you are “too lazy.”  If you want to break your addiction for good, then you need to be self-compassionate.

      5. Replace the Addiction With a Positive Alternative

      It’s a lot easier to eliminate a bad habit when you decide on a good habit that you would like to replace it with. I applied this idea by choosing to pick up a book every time I was tempted to check my feed.

      The result blew my mind. I read over a hundred pages in the first day! Trust me when I say those “few minutes of down-time” can add up to an obscene amount of waste.

      Having a specific metric to track is important. If you want to stay encouraged, you need to have compelling evidence that your time would be better spent elsewhere.

      For example, download an app to help you determine exactly how much time is spent on Facebook so you know how much of your life you’re losing to it. Then, when you find a healthy alternative, you can feel good about all the time you’re giving to it!

      Final Thoughts

      Facebook addictions aren’t uncommon in today’s technologically dependent world. In the pursuit of human connection, we’ve mistakenly taken our interactions online, thinking it would be an easier alternative. Unfortunately, this is no replacement for genuine, face-to-face interaction in real life.

      If you think you have a problem, there are things you can do to tackle it. Get started today and improve your overall well-being.

      More on How to Use Social Media Less

      Featured photo credit: Tim Bennett via unsplash.com

      Reference

      Read Next