I previously wrote that the Pareto Principle dictates that 20% of yourtime and expenses will drive 80% of your revenues. Focus on that 20% and don’tworry about the rest.
I have 120 itemson my to-do list today. I can’t possibly do it all. However, 20% of thoseitems are important and will help me meet my goals. I focus on that 20%: 24tasks. The rest can wait.
So far, I’ve spent$133 on this website. Some of that was wasted on a blogging website that Idecided not to use. Other money was spent to park certain relatedwebsite names for the next five years. 80/20.
It would be niceif we could cut our expenses and time investment by 80%, without losingprofits. But alas, life does not work that way. Rather, we need to continuously review ourinvestments of time and money, and trim away the excess fat.
When I worked at Deloitte,the trainers taught us to use a “C” drawer. All tasks could bedivided into A (do-it-now), B (do it soon), and C (don’t do it until you haveto). Put your C items away. Don’t dothem until you have to.
Twenty years afterthat training session, I still keep a “C” drawer in myoffice, all full of long-forgotten tasks that no one ever cared enough tofollow up on. I occasionally clean it out and marvel at all of the time I saved.
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[…] revenue (inference: 97.6% of users don’t contribute revenue!). This is similar to the 80/20 rule (only more so). 20% of customers (or less) account for 80% of revenues (or […]