Before you begin work, always ask yourself, “Is this task in the top 20% of my activities or in the bottom 80%?”
The 80/20 Rule is one of the most helpful of all concepts of time and life management. It is also called the Pareto Principle after its founder, the Italian economist Vilfredo Pareto, who first wrote about it in 1895. Pareto stated that 80% of your efforts produce only 20% of your results, while the remaining 20% of your efforts drive 80% of your results.
Small-business owners waste their time on what we call the RM 50 an hour work, like running to get office supplies. Meanwhile, they forgo the activities that earn RM 1,000 an hour, such as sending the right email to the right person, or negotiating a lucrative contract, or even convincing a client to do more business with you.
And we can understand: Entrepreneurs are extremely prone to rationalise, “I can do it myself.” Basically, they will spend six hours trying to extract a virus from their computer or fix a leaky faucet in the office.
We’re not saying that you’re not competent to do that little job. And sure, sometimes you have to do everything when you start out. But now you’re doing a RM 50 or RM 80 per hour fix-the-faucet job and you’re not doing your #1 job, which is getting and keeping customers. That job pays Rm 100 to RM 1,000 per hour.