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The 80/20 rule is also called the Pareto principle. You may know it better as the 80/20 rule. The idea behind it is that 80% of your results will be achieved by 20% of your work. Most business owners find this concept to be true, often realizing that 80% of their income is generated from just 20% of their work.
Thinking about the Pareto principle is the remaining 80% of your work essential?”
Know Your Branches
Take a look at the different branches of your business. You may have multiple branches that contribute to your income as a whole but some of the branches may be more profitable than others.
Prune Your Branches
Write down how much income you earned from each one of your branches last year. Consider stopping offering the branches that are the least profitable.
Once you have an idea of your profitable branches, you’ll want to consider if some of them need to be pruned. As you organize your branches, be sure to write down how much each is earning you as well as how much time you’re spending on it. That’s because sometimes, you may want to prune a branch that’s profitable but taking up too much of your time.
Focus on Your Branches
The amount of income a branch brings in should never be your sole consideration. You should also take into account what your business goals are. Then ask yourself, “Is this branch bringing me closer to my goal or further away?”
Ideally, branches that aren’t in line with your goals should be the first you prune. However, there may be a reason that you leave a branch in place temporarily if it is bringing in a good income while you work towards your goals.
The Pareto principle is a great way to look at essentialism. By *eliminating business branches that are no longer a good fit or that aren’t in line with your goals, you’ll be able to focus on the branches that truly matter.