How you can apply the 80/20 rule to the 1:3 rule to turn overwhelm into action?
In today’s LEARN OUT LOUD segment, I want to share a how you can apply the 80/20 rule to the 1:3 rule I shared with you last week, and not feel overwhelmed. If you missed last week’s video, not worries, you can view it HERE, but in a nutshell…
When you’re new in business, I recommend implementing the 1:3 rule, in order to avoid overwhelm. For every hour you spend… watching videos, listening to podcasts, personal development that you’re working through… For every hour that you consume information, you need to spend three hours taking action on it and implementing what you’ve learned. If you stick to the 1:3 ratio you almost can’t help but to succeed in your business.
So, how do we apply the 80/20 rule to this and not get overwhelmed?
First we need understand the 80/20 rule… The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes.
It really doesn’t matter what numbers you apply, the important thing to understand is that in your life there are certain activities you do (your 20 percent) that account for the majority (your 80 percent) of your outcomes… your outcomes in business, life, financial rewards, happiness, etc.
Got it? 🙂
Now back to how we can apply this to everything we are consuming and implementing…
Your goal as a business owner is to pay close attention to what you do every day, and categorize your actions, so that you can identify and outsource the low-paying jobs. Low-paying, meaning anything they can be performed for LESS than your hourly rate which is determined by the annual salary you desire divided by the number of hours you want to work on an annual basis.
So, if your goal is to make (I’m just throwing this figure out there) $100,000 per year and you want to work 20 hours a week, you would divide $100,000 by 1040 hours (multiply 20 hours a week by 52 weeks in a year), and your hourly rate would be $96 an hour. If your goal is to make $1,000,000 per year and you want to work 20 hours a week, you would divide $1,000,000 by 1040 hours (multiply 20 hours a week by 52 weeks in a year), and your hourly rate would be $962 an hour.
You get the picture.
So, now that you know what your time is worth, you have a better idea of what activities need to be outsourced as soon as you have the income to do so. Creating images for social media, completing technical updates for your blog, writing copy, cleaning, cooking, laundry, yard work. You move money around so that you can pay other people to do those things, and you can focus on the high-paying actions.
"Master your strengths, and outsource your weaknesses." Ryan Kahn
This may not be feasible when you’re first starting out, but create clear goals so that once you get to a certain income level, these are the first things are going to take off your plate. Identify the things that you’re not good at, or that you don’t want to do, that you can outsource to for less than your hourly rate, and free yourself to focus on the things that you are good at, that you enjoy, and that will help you reach your end goal of obtaining your hourly rate. Realizing and identifying your strengths and your weaknesses is one of the smartest things you do in business.
When you are focused on the 20% that's going to produce that 80% of your outcome... that's when you are controlling the outcomes in your business. We can start controlling what your income is going to be and what your income goals are going to be for the next month. At that point you can remain laser focused on the 20% activities that will make a difference in your business, and the 1:3 ratio of consuming and implementing, and you will see tremendous growth in your business. Then, in time, you will get to the point where you can do 20% of the 20%... 20% squared as my friend Penny says… and you're going to rock your business!
So… what about you? How do you apply the 80/20 rule to the 1/3 rule to turn overwhelm into action?
I hope you found this helpful. If so, please like, comment, or share with those you feel may benefit from hearing this.
AND if there is an area YOU want to challenge yourself to overcome or master, I would love to hear what it is and see how I can help you.
Oh… if you’re interested in learning the tool and strategies I use to help me master the mindset and skill set needed to build a successful business… you can click on the link below and request access to the same FREE 10 day training I used to change my business… AND you can even share it with anyone you like!
Looking forward to continuing to LEARN OUT LOUD with you. Thanks for watching, and until next time… MAKE TODAY AWESOME!