Outsourcing Pros: Getting More Productive With 80/20 Basic principle

Outsourcing Pros: Getting More Productive With 80/20 Basic principle

Today I have to give you something what we call the 80/20 concept and it's the Pareto's Law likewise, too when you are familiar with the 80/20 or Pareto's Law, it's a similar thing. Exactly why I have to seek advice from you around the 80/20 basic principle is I have to discuss the way it applies to outsourcing. I had a question from one of my recent workshops also it was actually fascinating because I feel a number of people were struggling about what to outsource. They can't determine how to be able to take themselves out of their business and outsource their work to the right people, and it's not hard to say look I'm just going to bring in help and let them just take over of everything. Because as an entrepreneur, you do literally sets from handling customer service emails to all the way to uploading things up onto the internet for videos and so forth. You're kind of the hands-on person who does everything. And that's very normal and very common for solo entrepreneurs. I'm very much conscious of it because I've already been through it and I've been doing that also, too in the past.

Now, having a step out of that to actually release what you're currently doing and to give the individual that you're outsourcing to, to do the job correctly has a bit of thinking and it's not as simple as just giving them all the work and say look, you accomplish that. You need to firstly give them understanding on the actual way it works and also knowledge of what needs to be done and then setup the systems and the automation process that are involved. Now this is where the 80/20 concept comes into play and when you look at the actual way it works, it's actually very simple concept. Let me explain to you what the 80/20 principle is if you don't know what it is.

The 80/20 basic principle is where 80% of your results comes from 20% of your efforts. Let me give you an example. Say for example, you've put in 20% of your time to producing 80% of your results. Let's look at a preview. As an example, I know that 20% of the people in the world, make about 80% of the wealth. That's one such thing or common phrase that goes around. Apparently, with the new age and everything that changes, about -- it's moved from about 10% of the people in the world make about 90% of the world, or wealth I should say. And it's a very generalistic term. Don't blame me if I'm telling you the facts. I'm just hearing these from books I've read and also articles I've read and so forth but basically that is the terminology. Now if you're going to apply that to outsourcing, where say 20% of the things that you do within your business will generate 80% of the results. And what I mean by that is say as an example, you spend 20% of your time on making money. You're doing dollar-productive activities. Those dollar-productive activities ought to provide 80% of your income. If you're making $100,000 a year for example and -- 20% of that time that you spend in your business, you're making the dollar-productive activities, that's basically 80% results.

That's basically a very simple understanding and concept. Hopefully I've explained that. I know I've been saying that again. But what I want to say now is looking at outsourcing. What you would like to do is look at what are your activities in your business which are dollar-productive for you that you are doing right now, that is generating 80% of the results. Think about that for a moment, what are those? Once you've figured out what those ideas are, then the 80% of those ideas you can either eliminate, that's the first thing or automate which is establishing the systems, or outsource. And this is what I'm talking about, those 80% of the things that you don't need to do. Examples are email, you might not need to check your email everyday, you could get someone else to do that for you depending of what kind of company you have. Cut it down, eliminate, setup these filters, setup systems so that it automatically answers them for you either. That's 80% that's administration tasks that doesn't need to be done. Uploading videos; you don't physically need to sit there and upload videos online or uploading content, posting blogs, etc. You can have a VA log into your computer and do that for you while you're away. Those activities are not making money but in the -- in the essence of actually producing content for the net, you'll need to do those things if you're a blogger, or someone who is promoting online. So those ideas are essential but, you don't need to do them yourself. The things that you may think that are dollar-productive for you are talking to clients, writing out newsletters to potential prospects on your newsletter list, subscribers for instance. Those are dollar-productive. In search of new leads one example is and generating additional money through sales.

So those ideas are dollar-productive. Things that will make money for your business. You can look at that or you can setup a system as a way to have that all automated for you. And that's crucial. If you get to a certain point where basically you don't even need to worry about those ideas and you look at everything from strategic and looking at from the overview point of things, then that's where the place you want to be is putting all the strategic concepts into place, so that, that way your team your outsourced staff can actually do all the job for you and all you need to do is sit back and collect the income but also strategically drive the organization forward on where you want to go.

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