This One Thing Will Change… Everything
This One Thing Will Change… Everything
Most business owners are in a constant state of overwhelm. They’re being pulled in a million directions.
The result is they’re focusing their energy and time on too many different things, which is leading to slow (and oftentimes backwards) growth.
Do you feel that?
Does your life feel more like this?
Instead of this?
The business owners and the brands that grow the fastest and largest are the ones that recognize the most important areas to focus their energy, their time, and their money.
Their life looks more like the second graphic. Focused with forward momentum.
They do this through a concept called the 80/20 rule.
This essentially is a rule that states 80% of your results are coming from 20% of your efforts and action.
Here’s the more official definition…
“The 80-20 rule maintains that 80% of outcomes (outputs) come from 20% of causes (inputs). In the 80-20 rule, you prioritize the 20% of factors that will produce the best results. A principle of the 80-20 rule is to identify an entity's best assets and use them efficiently to create maximum value” - Investopedia
When you’re looking at this from a brand growth perspective, that means 80% of your sales are typically coming from 20% of your products.
On the outside, this seems pretty basic and elementary, but most brands that are struggling to grow are not recognizing this in their business…
They’re not recognizing it in the products…
They’re not recognizing it in their marketing…
And they’re not recognizing it in how they’re spending their time and money.
Instead they’re spending time and money on a bunch of different things that aren’t moving the brand forward, and they’re usually either sitting at a peak or slowly declining in sales.
The brands that grow the fastest with more profits are the ones that are able to recognize where they need to be focusing the majority of their money and time.
Unfortunately this can be a scary thing for a lot of business owners because what they recognize as their biggest driver of 80% of their growth isn’t always something they're proud of.
When this happens, they put up blinders and they decide that they’re going to make their own path.
If there’s one thing that we’ve learned from all our online brands, it’s that you cannot change people's preferences, but you can ride the wave of their preferences.
When you do that, you’ll find your time as an owner becomes more focused.
Your money works FOR you.
Your energy becomes more focused.
And the result is faster momentum, faster growth, and more profits for your business.
The first step is recognizing the 20%.
Recognizing the 20% of your products that are driving the most growth for your business.
Recognizing the 20% of ads and audiences that are driving the most growth for your business.
Then shifting your energy to those things so you’re less spread out, and you’re more focused.
Our challenge to you is to find those things, and to not be afraid of them.
To not be afraid of the products that are driving the most sales for your business.
We know what you're thinking, and you’re not gonna become known as “that brand”.
When you get out of your own head and take control as a business owner, and recognize the 80/20 in your business, you’re going to see the most results.
You’re going to feel less stressed. You’re gonna be more excited and energized about what you’re doing.
The really cool thing about this is that it isn’t something that’s a one and done type deal.
The first time you find that 20%, your decisions are going to start with “What crappy things do I need to eliminate?”
As you continue to refine the 80/20 pieces of your business, your decisions are going to move to “What good things should I cut to focus on even greater things?”
This constant cycle of getting better month-after-month is what builds the strongest foundation in your business, and what helps you build a great brand.
This is what the top 1% of brands do and have done to get to where they are and to continue to see success.
We’ll leave you with this quote to chew on…
“80 percent of products, or customers or employees, are only contributing 20 percent of profits; that there is great waste; that the most powerful resources of the company are being held back by a majority of much less effective resources; that profits could be multiplied if more of the best sort of products could be sold, employees hired, or customers attracted (or convinced to buy more from the firm).” ― Richard Koch