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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.

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    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.

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    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.

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    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.

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      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

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      Adnan Manzoor

      Data Analyst & Life Coach

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      Last Updated on October 16, 2019

      Invaluable Lessons You Can Learn From Your Mistakes

      Invaluable Lessons You Can Learn From Your Mistakes

      Do you like making mistakes?

      I certainly don’t.

      Making mistakes is inevitable. Wouldn’t it be wonderful if we could be at ease with them?

      Perhaps there is a way to think of them differently and see their benefits.

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      Why Mistakes Feel Dangerous

      Mistakes often feel dangerous. Throughout human history, our errors have often been treated as dangerous for a variety of reasons:

      • Our vulnerability. We have limited and fragile support systems. When those systems fail, people often lose their lives.
      • Real dangers. Nature can be dangerous, and making mistakes can put us at the mercy of nature and its animal residents seeking a meal.
      • Ignorance. Many cultures scapegoats someone whenever there is a failure of some kind. Scapegoating can be serious and deadly.
      • Order. Many societies punish those who do not conform to the prevailing orthodoxy and treat difference and non-conformity as a mistake. Even our brains flash an error message whenever we go against prevailing social norms.

      We have a history of handling mistakes and failure in an unpleasant way. Since each of us carries our human history with us, it can be a challenge to overcome the fear of making mistakes.

      If we can embrace the reality of mistakes, we can free ourselves to be more creative in our lives and dig up some interesting insights.

      Why We Can’t Avoid Making Mistakes

      Many people operate under the notion that making mistakes is an aberration, a mistake if you will. You can call it perfectionism but it is a more substantial problem. It is really a demand for order and continuity.

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      When we think we can eliminate mistakes, we are often working from a perspective that sees the world as a fixed place. The world, however, is not so obliging. Like it or not, the world, and everything in it, is constantly changing.

      Change is more constant and pervasive than we can see with our own eyes which is why we often miss it. Our bodies are constantly changing. The natural conditions of the earth change constantly as well. Everything, including economic and cultural systems have life cycles. Everything is in a constant state of flux.

      We cannot see all of the changes going on around us since rates of change vary. Unfortunately, when we try to create a feeling of certainty and solidity in our lives or operate from the illusion of stability and order, we are fighting reality and our natural evolution which is built on adapting to change.

      It is better to continually bend into this reality rather than fight every change we experience. Fighting it can cause us to make more mistakes. Finding the benefits in change can be useful and help us minimize unnecessary mistakes.

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      Lessons Learned from Making Mistakes

      Life has so many uncertainties and variables that mistakes are inevitable. Fortunately, there are many things you can learn from making mistakes.

      Here is a list of ways to harness the mistakes you make for your benefit.

      1. Point us to something we did not know.
      2. Reveal a nuance we missed.
      3. Deepen our knowledge.
      4. Tell us something about our skill levels.
      5. Help us see what matters and what does not.
      6. Inform us more about our values.
      7. Teach us more about others.
      8. Let us recognize changing circumstances.
      9. Show us when someone else has changed.
      10. Keep us connected to what works and what doesn’t work.
      11. Remind us of our humanity.
      12. Spur us to want to better work which helps us all.
      13. Promote compassion for ourselves and others.
      14. Teach us to value forgiveness.
      15. Help us to pace ourselves better.
      16. Invite us to better choices.
      17. Can teach us how to experiment.
      18. Can reveal a new insight.
      19. Can suggest new options we had not considered.
      20. Can serve as a warning.
      21. Show us hidden fault lines in our lives which can lead us to more productive arrangements.
      22. Point out structural problems in our lives.
      23. Prompt us to learn more about ourselves.
      24. Remind us how we are like others.
      25. Make us more humble.
      26. Help us rectify injustices in our lives.
      27. Show us where to create more balance in our lives.
      28. Tell us when the time to move on has occurred.
      29. Reveal where our passion is and where it is not.
      30. Expose our true feelings.
      31. Bring out problems in a relationship.
      32. Can be a red flag for our misjudgments.
      33. Point us in a more creative direction.
      34. Show us when we are not listening.
      35. Wake us up to our authentic selves.
      36. Can create distance with someone else.
      37. Slow us down when we need to.
      38. Can hasten change.
      39. Reveal our blind spots.
      40. Are the invisible made visible.

      Reframe Reality to Handle Mistakes More Easily

      The secret to handling mistakes is to:

      • Expect them as part of the process of growth and development.
      • Have an experimental mindset.
      • Think in evolutional rather than fixed terms.

      When we accept change as the natural structure of the world, our vulnerability and humanness lets us work with the ebb and flow of life.

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      When we recognize the inevitability of mistakes as part of the ongoing experiment which life is, then we can relax more. In doing so we may make fewer of them.

      It also helps to keep in mind that trial and error is an organic natural way of living. It is how we have evolved over time. It is better to be with our natural evolution than to fight it and make life harder.

      When we adopt an evolutional mindset and see ourselves as part of the ongoing human experiment, we can appreciate that all that has been built up over time which includes the many mistakes our ancestors have made over thousands of years. Each one of us today is a part of that human tradition of learning and experimenting,

      Mistakes are part of the trial and error, experimental nature of life. The more you adopt the experimental, evolutional frame, the easier it becomes to handle mistakes.

      Handling mistakes well can help you relax and enjoy all aspects of life more.

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      Featured photo credit: Sarah Kilian via unsplash.com

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