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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 February 15, 2019

      7 Clever Goal Tracker Apps to Make the Most of Your Business in 2019

      7 Clever Goal Tracker Apps to Make the Most of Your Business in 2019

      There’s nothing more fulfilling than the sense of accomplishment you get by achieving your business goals.

      Gone are the days when you used pen and paper to take notes and manage your work day. As millennials are relying heavily on technology to manage almost everything from finances to their personal fitness, goal tracking apps are also becoming increasingly popular.[1]

      In this piece, we will shed some light on 7 such goal tracking apps that you can use to streamline your operations.

      I have handpicked these apps from a software rating web services site Best Online Reviews. Industry experts review software on these websites and help businesses to find the right solutions to meet their various, unique business requirements.

      1. Aha!

        Aha! is a California-based roadmap software provider and offers excellent goal tracking app that lets you define goals and objectives for projects. The app also lets you list out primary tasks and allows you to focus on them.

        Hosted securely on the cloud, the app offers enhanced communication tools for sharing updates through emails with select colleagues or the entire organization.

        Aha! is available on multiple platforms such as the web, Android, iOS, Windows, etc. and starts from $59 per month per user.

        Available for Web

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        2. Asana

          Asana is one of the more popular project management apps available for businesses. It lets you organize all your team’s work, such as setting up and tracking goals, creating tasks, sharing files and notes, etc.

          Asana also allows your team to organize all their tasks and focus on urgent priorities. Moreover, the app offers a delightful user experience that makes task management simple and easy.

          Asana is available on multiple platforms from PCs and Mac to iOS and Android. Multi-channel adaptability makes Asana the perfect choice to track your goals anytime, from anywhere.

          Available for iOS | Android | Web

          3. Basecamp

            Basecamp is an excellent tool to manage all your team’s projects and keep your activities organized. It opens a new thread for every task and that task is visible by the whole team.

            With Basecamp, you can schedule tasks, add to-dos, discuss tasks by adding comments, add files and attachments, and much more.

            The app is available on both mobile and desktop platforms and costs $99 per month. It is available on the web, Android, and iOS platforms and offers excellent multi-channel access.

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            Available for iOS | Android | Web

            4. Forecast

              An efficient tool for successful task management, Forecast is also a popular goal tracking app. Apart from effective milestone tracking, the app also offers convenient status reporting.

              Forecast uses project history to let you know the status of your current work. Moreover, it uses the power of artificial intelligence (AI) to provide high-quality assistance. It is a robust app for small teams to track goals and time.

              Forecast is available for free and comes with Android and iOS app support. The premium version of the app starts from $19 per month per user.

              Available for Web

              5. Wrike

                Wrike is a cloud-based collaboration and project management app that successfully manages projects from start to finish. It lets you create tasks, track work progress and retrieve reports with ease.

                The app also gives real-time work updates and helps team members to understand their work priorities. A custom report builder helps you to generate in-depth reporting.

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                Wrike’s premium version is available from $9.80 per month per user and is available on multiple platforms.

                Available for iOS | Android | Web

                6. Todo.vu

                  Todo.vu is a unique platform that delivers enhanced customer relationship management (CRM), task management, time tracking, and billing functionality in a single app.

                  According to Capterra, it’s an ideal app for freelancers and consultants, who are looking for tools to improve efficiency and transparency.

                  Although the app is free to use with basic features, the premium plan starts from $5 per month per user. The app also comes with calendar sync and task reminder functionality to keep you on track, always.

                  Available for Web

                  7. Flock

                    Looking for a tool to simplify task management? Try out Flock.

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                    Flock comes with enhanced goal tracking and additional features like instant messaging.

                    Moreover, Flock offers tons of integrations with tools such as Google, MailChimp, Jira, Dropbox, etc. It is a powerful tool that’s packed with robust features such as reminders, notes, polls and to-dos.

                    Even though you can use the tool for free, the paid version of Flock is available from $4.50 per month per user.

                    Available for iOS | Android | Web

                    Conclusion

                    Businesses need high-quality project management tools to streamline collaboration and operations. Enhanced goal tracking apps make it easy for your team to improve productivity by keeping its tasks organized.

                    But it’s essential that you choose an app that meets your unique business requirements. You can choose from the above-mentioned apps to streamline operations and improve the productivity of your team.

                    Featured photo credit: Alvaro Reyes via unsplash.com

                    Reference

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