In yesterday’s blog entry, I suggested that (if you are an entrepreneur) putting less effort into your business would yield greater results in the long-run.
By focusing on the 20% of your business that generates 80% of the revenue, you can then invest your freed up 80% on new business models that have greater long-term potential. (please read this last sentence again…this philosophy is not about taking a pay cut in order to lounge around; it is about freeing yourself to create even greater income potential while having a more enjoyable life)
Many people (as expected) pushed back.
Their response, “That’s easier said than done.”
Well of course, everything is easier said than done! It is easier for me to say, “I’m going to tie my shoes,” than it is to actually tie them. But I still do it.
We look for excuses as to why we can’t do something. We blame our parents. We blame our circumstances. We blame the government. We blame our family. We blame our employer or boss.
Instead of finding reasons why something won’t work, get creative about how to make it work. Ask yourself, “How can I apply the underlying principles to my specific situation?” Even if you can’t apply the concept in its entirety, look for the nuggets that you can use.
Don’t put the NO in inNOvation!
The point of yesterday’s blog was to get you thinking about your business and where you invest your time, money, and energy.
According to Jeff Olson, author of The Agile Manager’s Guide to Getting Organized, “Perfectionism costs 50% or more of the total effort to squeeze out the last 10% or so of quality.” Never strive for perfection. Avoid the 100% mentality.
Ditch your worst customers – Look at your customers. Instead of trying to get more customers, ask, “Which customers should I get rid of?” Admit it, there are customers that generate less income than others, yet take up most of your time. I find that the customers that are most price sensitive are also the most difficult. I spend more time with them than I do with my best customers. The solution? Ditch the 20% that are sucking up your time. This not only frees up some hours in your day, it frees up your mental energy. Stress is created by your worst customers, not your best. Ok, I realize that when money is tight, this can seem like a risky proposition. Well, it is! But admit it, you intuitively know that attempting to keep 100% of your customers 100% happy will keep you working 100 hours a week and ultimately limit your true growth potential.
Ditch your lowest return activities – Look at the work you do. Look at your to do list. You will never get 100% of the work done, even if you had 200 hours in a week. Regardless, we still strive to get 100% done. Again, this mentality limits your growth potential. Instead of asking, “How can I get as much done as possible?” ask, “What should I stop doing?” or “What are the things I must do?” Or better yet, ask, “What is the one thing that will unlock the greatest growth potential for my business? What gives me leverage?” Be honest. What would happen if you got one less thing done off your to do list? Two less things? Find the sweet spot of where you can get the optimal return. And as mentioned in yesterday’s article, delegate, automate, or eliminate. Only do what you need to do, and get the rest off of your plate. And no, you are not the only one who can do most of your activities. It might feel that way, but it is not true. And believing it will kill you.
Ditch unnecessary clutter and belongings – Worried about money? Look at your life. Instead of keeping 100% of what you have, ask “What can I get rid of? What do I really need?” My Monday Morning Movie provided some great tips for this. And tomorrow’s blog entry will share some interesting statistics on how clutter can be sucking up a lot of your time. Freeing up your personal life frees you up professionally, which in turn further frees up your personal life.
Freedom is the name of the game. Don’t let perfection be the enemy of a good life and a successful business.