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

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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 7, 2021

      Are You Addicted to Productivity?

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      Are You Addicted to Productivity?

      “It’s great to be productive. It really is. But sometimes, we chase productivity so much that it makes us, well, unproductive. It’s easy to read a lot about how to be more productive, but don’t forget that you have to make that time up.”

      Matt Cutts wrote that back in 2013,[1]

      “Today, search for ‘productivity’ and Google will come back with about 663,000,000 results. If you decide to go down this rabbit hole, you’ll be bombarded by a seemingly endless amount of content. I’m talking about books, blogs, videos, apps, podcasts, scientific studies, and subreddits all dedicated to productivity.”

      Like so many other people, I’ve also fallen into this trap. For years I’ve been on the lookout for trends and hacks that will help me work faster and more efficiently — and also trends that help me help others to be faster. I’ve experimented with various strategies and tools . And, while some of these strategies and solutions have been extremely useful — without parsing out what you need quickly — it’s counterproductive.

      Sometimes you end up spending more time focusing on how to be productive instead of actually being productive.

      “The most productive people I know don’t read these books, they don’t watch these videos, they don’t try a new app every month,” James Bedell wrote in a Medium post.[2] “They are far too busy getting things done to read about Getting Things Done.”

      This is my mantra:

      I proudly say, “I am addicted to productivity — I want to be addicted to productivity — productivity is my life and my mission — and I also want to find the best way to lead others through productivity to their best selves.

      But most of the time productivity means putting your head down and working until the job’s done.” –John Rampton

      Addiction to Productivity is Real

      Dr. Sandra Chapman, director of the University of Texas at Dallas Center for BrainHealth points out that the brain can get addicted to productivity just as it can to more common sources of addiction, such as drugs, gambling, eating, and shopping.

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      “A person might crave the recognition their work gives them or the salary increases they get,” Chapman told the BBC.[3] “The problem is that just like all addictions, over time, a person needs more and more to be satisfied, and then it starts to work against you. Withdrawal symptoms include increased anxiety, depression, and fear.”

      Despite the harmful consequences, addiction is considered by some experts as a brain disease that affects the brain’s reward system and ends in compulsive behavior. Regardless, society tends to reward productivity — or at least to treat it positively. As a result, this makes the problem even worse.

      “It’s seen like a good thing: the more you work, the better,” adds Chapman. “Many people don’t realize the harm it causes until a divorce occurs and a family is broken apart, or the toll it takes on mental health.”

      Because of the occasional negative issues with productivity, it’s no surprise that it is considered a “mixed-blessing addiction.”

      “A workaholic might be earning a lot of money, just as an exercise addict is very fit,” explains Dr. Mark Griffiths, distinguished professor of behavioral addiction at Nottingham Trent University. “But the thing about any addiction is that in the long run, the detrimental effects outweigh any short-term benefits.”

      “There may be an initial period where the individual who is developing a work addiction is more productive than someone who isn’t addicted to work, but it will get to a point when they are no longer productive, and their health and relationships are affected,” Griffiths writes in Psychology Today.[4] “It could be after one year or more, but if the individual doesn’t do anything about it, they could end up having serious health consequences.”

      “For instance, I speculated that the consequences of work addiction may be reclassified as something else: If someone ends up dying of a work-related heart attack, it isn’t necessarily seen as having anything to do with an addiction per se – it might be attributed to something like burnout,” he adds.

      There Are Three “Distinct Extreme Productivity Types

      Cyril Peupion, a Sydney-based productivity expert, has observed extreme productivity among clients at both large and medium-sized companies. “Most people who come to me are high performers and very successful. But often, the word they use to describe their work style is ‘unsustainable,’ and they need help getting it back on track.”

      By changing their work habits, Peupion assists teams and individuals improve their performance and ensure that their efforts are aligned with the overarching strategy of the business, rather than focusing on work as a means to an end. He has distinguished three types of extreme productivity in his classification: efficiency obsessive, selfishly productive, and quantity-obsessed.

      Efficiency obsessive. “Their desks are super tidy and their pens are probably color-coded. They are the master of ‘inbox zero.’ But they have lost sight of the big picture, and don’t know the difference between efficiency and effectiveness.”

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      Selfishly productive. “They are so focused on their own world that if they are asked to do something outside of it, they aren’t interested. They do have the big picture in mind, but the picture is too much about them.”

      Quantity-obsessed. “They think; ‘The more emails I respond to, the more meetings I attend, the more tasks I do, the higher my performance.’ As a result, they face a real risk of burnout.”

      Peupion believes that “quantity obsessed” individuals are the most common type “because there is a pervasive belief that ‘more’ means ‘better’ at work.”

      The Warning Signs of Productivity Addiction

      Here are a few questions you should ask yourself if you think you may be succumbing to productivity addiction. After all, most of us aren’t aware of this until it’s too late.

      • Can you tell when you’re “wasting” time? If so, have you ever felt guilty about it?
      • Does technology play a big part in optimizing your time management?
      • Do you talk about how busy you are most of the time? In your opinion, is hustling better than doing less?
      • What is your relationship with your email inbox? Are you constantly checking it or experience phantom notifications?
      • When you only check one item off your list, do you feel guilty?
      • Does stress from work interfere with your sleep?
      • Have you been putting things off, like a vacation or side project, because you’re “too swamped?

      The first step toward turning around your productivity obsession is to recognize it. If you answered “yes” to any of the above questions, then it’s time to make a plan to overcome your addiction to productivity.

      Overcoming Your Productivity Addiction

      Thankfully, there are ways to curb your productivity addiction. And, here are 9 such ways to achieve that goal.

      1. Set Limits

      Just because you’re hooked on productivity doesn’t mean you have to completely abstain from it. Instead, you need to establish boundaries.

      For example, there are a lot of amazing productivity podcasts out there. But, that doesn’t mean you have to listen to them all in the course of a day. Instead, you could listen to one or two podcasts, like The Productivity Podcast or Before Breakfast, during your commute. And, that would be your only time of the day to get your productivity fix.

      2. Create a Not-to-Do List

      Essentially, the idea of a not-to-do list is to eliminate the need to practice self-discipline. Getting rid of low-value tasks and bad habits will allow you to focus on what you really want to do as opposed to weighing the pros and cons or declining time requests. More importantly, this prevents you from feeling guilty about not crossing everything off an unrealistic to-do list.

      3. Be Vulnerable

      By this, I mean admitting where you could improve. For example, if you’re new to remote work and are struggling with thi s, you would only focus on topics in this area. Suggestions would be how to create a workspace at home, not getting distracted when the kids aren’t in school, or improving remote communication and collaboration with others.

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      4. Understand Why You Procrastinate

      Often, we procrastinate to minimize negative emotions like boredom or stress. Other times it could be because it’s a learned trait, underestimating how long it takes you to complete something or having a bias towards a task.

      Regardless of the exact reason, we end up doing busy work, scrolling social media, or just watching one more episode of our favorite TV series. And, even though we know that it’s not for the best, we do things that make us feel better than the work we should do to restore our mood.[5]

      There are a lot of ways to overcome procrastination. But, the first step is to be aware of it so that you can take action. For example, if you’re dreading a difficult task, don’t just watch Netflix. Instead, procrastinate more efficiently,y like returning a phone call or working on a client pitch.

      5. Don’t Be a Copycat

      Let’s keep this short and sweet. When you find a productivity app or technique that works for you, stick with it.

      That’s not to say that you can’t make adjustments along the way or try new tools or hacks. However, the main takeaway should be that just because someone swears by the Pomodoro Technique doesn’t mean it’s a good fit for you.

      6. Say Yes to Less

      Across the board, your philosophy should be less is more.

      That means only download the apps you actually use and want to keep (after you try them out) and uninstall the ones you don’t use. For example, are you currently reading a book on productivity? Don’t buy your next book until you’ve finished the one you’re currently reading (or permit yourself to toss a book that isn’t doing you any good). — and if you really want to finish a book more quickly, listen to the book on your way to work and back.

      Already have plans this weekend? Don’t commit to a birthday party. And, if you’re day is booked, decline that last-minute meeting request.

      7. Stop Focusing on What’s Next

      “In the age when purchasing a thing from overseas is just one click and talking to another person is one swipe right, acquiring new objects or experiences can be addictive like anything else,” writes Patrick Banks for Lifehack .

      “That doesn’t need to be you,” he adds. “You can stop your addition to ‘the next thing’ starting today.” After all, “there will always be this next thing if you don’t make a conscious decision to get your life back together and be the one in charge.”

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      • Think about your current lifestyle and the person you’re at this stage to help you identify what you aren’t satisfied with.
      • By setting clear goals for yourself in the future, you will be able to overcome your addiction.
      • Establish realistic goals.
      • To combat addiction, you must be aware of what is going on around you, as well as inside your head, at any given time.
      • Don’t spend time with people who have unhealthy behaviors.
      • Hold yourself accountable.
      • Keep a journal and write out what you want to overcome.
      • Appreciate no longer being addicted to what’s next.

      8. Simplify

      Each day, pick one priority task. That’s it. As long as you concentrate on one task at a time, you will be less likely to get distracted or overwhelmed by an endless list of tasks. A simple mantra to live by is: work smarter, not harder.

      The same is also accurate with productivity hacks and tools. Bullet journaling is a great example. Unfortunately, for many, a bullet journal is way more time-consuming and overwhelming than a traditional planner.

      9. Learn How to Relax

      “Sure, we need to produce sometimes, especially if we have to pay the bills, but, banning obsession with productivity is unhealthy,” writes Leo Babauta. “When you can’t get yourself to be productive, relax.” Don’t worry about being hyper-efficient. And, don’t beat yourself up about having fun.

      “But what if you can’t motivate yourself … ever?” he asks. “Sure, that can be a problem. But if you relax and enjoy yourself, you’ll be happier.”

      “And if you work when you get excited, on things you’re excited about, and create amazing things, that’s motivation,” Leo states. “Not forcing yourself to work when you don’t want to, on things you don’t want to work on — motivation is doing things you love when you get excited.”

      But, how exactly can you relax? Here are some tips from Leo;

      • Spend 5 minutes walking outside and breathe in the fresh air.
      • Give yourself more time to accomplish things. Less rushing means less stress.
      • If you can, get outside after work to enjoy nature.
      • Play like a child. Even better? Play with your kids. And, have fun at work — maybe give gamification a try .
      • Take the day off, rest, and do something non-work-related.
      • Allow yourself an hour of time off. Try not to be productive during that time. Just relax.
      • You should work with someone who is exciting. Make your project exciting.
      • Don’t work in the evenings. Seriously.
      • Visit a massage therapist.
      • Just breathe.

      “Step by step, learn to relax,” he suggests. “Learn that productivity isn’t everything.” For that statement, sorry Leo, I say productivity isn’t everything — it’s the only thing.” However, if you can’t cut loose, relax, do fun things, and do the living part of your life — you’ll crack in a big way — you really will.

      It’s great to create and push forward — just remember it doesn’t mean that every minute must be spent working or obsessing over productivity issues. Instead, invest your time in meaningful, high-impact work, get into it, focus, put in big time and then relax.

      Are You Addicted to Productivity? was originally published on Calendar by John Rampton.

      Featured photo credit: Christina @ wocintechchat.com via unsplash.com

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