How to Increase Your Income No Matter What You Do!
Now you may well ask who is Snr Pareto and why should I care about his opinion? Well you will once you understand what he discovered which is now known as.
Pareto's Principle otherwise known as "the 80/20 Rule".
In 1895, Italian economist Vilfredo Pareto wrote about a mathematical formula he discovered which showed why wealth is distributed in the way it is, in his country and every other country he studied.
Pareto observed that twenty percent of the population owned eighty percent of the land.
Eventually others found similar results that applied to all kinds of situations including how 80% of you work only brings 20% of your income, or in reverse how 20% of your efforts produce a massive 80% of your income.
Dr.
Joseph Juran, a quality management expert working in the US in the 1930s and 40s recognized a universal principle he dubbed the "vital few and trivial many.
" As a result, Juran's observation that 20 percent of something is responsible for 80 percent of the results became known as Pareto's Principle, or the 80/20 Rule.
Snr Pareto is no longer around but his value to you and your business is based upon the law that he taught.
This is not just a theory, it is a law just as real as the Law of Gravity.
You wouldn't go through life ignoring the Law of Gravity, equally you should not run your business ignoring what has now become known as "Pareto's Law" In essence this law sets out the principle of the 80/20 rule.
You have probably heard of it as such, however you may not have really understood its significance to your life and your business.
As an example and as a fact, if you are not already applying this principle, he states that 80% of the results you obtain are the result of 20% of your efforts both in your private life and in your business undertakings It will pay you to take this on board and examine all your activities if you want better results than you are getting.
This is because, if you keep on doing things the way you are doing them you will keep on getting the same results.
Start by examining every aspect of you business: 1) Your Time Management.
This one of the most critical elements of your success or failure in Life and in Business.
We all have the same amount of time, no one has any more than you and I, yet some people are making a fortune in the same time frame as us, and like it or not, their better use of their working time is a big factor in their greater success.
2) Your Employees.
Examine carefully and without letting your emotions figure in the calculation the actual contribution to your results each employee is making..
Unless you are very lucky you will see this principle being fulfilled..
80% of the effective work is probably being done by 20% of the people.
3) Your Administration.
Are you spending your time on doing things you don't get paid for.
The only time you earning money as a builder or a tradesman is when you are 'hands on' at the job.
All the other work can be done by others at a lower rate than you are worth.
It is a false economy to continue spending your time doing £5 an hour work.
especially when you have a pile of jobs ahead of you.
4) Your Marketing.
What methods are you using to create a continuous stream of inquiries? Most people find on examination that only 20% of the money they spend on advertising is working.
It will profit you no end to carry out an examination of your business practices under these headings as a start.
Pareto's Principle otherwise known as "the 80/20 Rule".
In 1895, Italian economist Vilfredo Pareto wrote about a mathematical formula he discovered which showed why wealth is distributed in the way it is, in his country and every other country he studied.
Pareto observed that twenty percent of the population owned eighty percent of the land.
Eventually others found similar results that applied to all kinds of situations including how 80% of you work only brings 20% of your income, or in reverse how 20% of your efforts produce a massive 80% of your income.
Dr.
Joseph Juran, a quality management expert working in the US in the 1930s and 40s recognized a universal principle he dubbed the "vital few and trivial many.
" As a result, Juran's observation that 20 percent of something is responsible for 80 percent of the results became known as Pareto's Principle, or the 80/20 Rule.
Snr Pareto is no longer around but his value to you and your business is based upon the law that he taught.
This is not just a theory, it is a law just as real as the Law of Gravity.
You wouldn't go through life ignoring the Law of Gravity, equally you should not run your business ignoring what has now become known as "Pareto's Law" In essence this law sets out the principle of the 80/20 rule.
You have probably heard of it as such, however you may not have really understood its significance to your life and your business.
As an example and as a fact, if you are not already applying this principle, he states that 80% of the results you obtain are the result of 20% of your efforts both in your private life and in your business undertakings It will pay you to take this on board and examine all your activities if you want better results than you are getting.
This is because, if you keep on doing things the way you are doing them you will keep on getting the same results.
Start by examining every aspect of you business: 1) Your Time Management.
This one of the most critical elements of your success or failure in Life and in Business.
We all have the same amount of time, no one has any more than you and I, yet some people are making a fortune in the same time frame as us, and like it or not, their better use of their working time is a big factor in their greater success.
2) Your Employees.
Examine carefully and without letting your emotions figure in the calculation the actual contribution to your results each employee is making..
Unless you are very lucky you will see this principle being fulfilled..
80% of the effective work is probably being done by 20% of the people.
3) Your Administration.
Are you spending your time on doing things you don't get paid for.
The only time you earning money as a builder or a tradesman is when you are 'hands on' at the job.
All the other work can be done by others at a lower rate than you are worth.
It is a false economy to continue spending your time doing £5 an hour work.
especially when you have a pile of jobs ahead of you.
4) Your Marketing.
What methods are you using to create a continuous stream of inquiries? Most people find on examination that only 20% of the money they spend on advertising is working.
It will profit you no end to carry out an examination of your business practices under these headings as a start.
Source...