As a business owner, you probably feel like you’re spinning multiple plates at once—sales, marketing, operations, finance, and team management, to name just a few. But what if I told you that only 20% of what you do each day is responsible for 80% of your results? This is the power of the  Pareto Principle, also known as the 80/20 Rule.

The 80/20 rule can be applied to maximise efficiency, focus on what truly drives your success, and create a business that works for you rather than you having to work in it all the time. In today’s blog I’ll be showing you how this principle works and, how you can apply it in your business.

What is the 80/20 Rule?

The Pareto Principle was named after Italian economist Vilfredo Pareto, who discovered that 80% of Italy’s land was owned by just 20% of the population. The principle has since been observed in business, economics, and even personal productivity—where 80% of outcomes come from 20% of inputs.

For example:

  • 80% of your revenue likely comes from 20% of your customers
  • 80% of customer complaints probably stem from 20% of your processes or clients
  • 80% of your time-consuming tasks may generate just 20% of your results

By identifying and focusing on the vital 20%, you can eliminate wasted effort and accelerate your business growth.

 

Applying the 80/20 Rule in Your Business

So, how can you use this principle to boost your efficiency, productivity, and profits? Let’s break it down into four key areas.

  1. Focus on Your Most Profitable Customers

Not all customers are created equal. Some bring in significant revenue, are easy to work with, and refer others. Others may drain your resources with endless requests, late payments, and complaints.

Action Step:

  • Identify the top 20% of customers who generate 80% of your revenue.
  • Look at what makes them valuable—do they buy high-margin products? Do they repeatedly purchase?
  • Focus your marketing and customer service efforts on attracting and retaining more of these ideal clients.
  1. Streamline Your Product or Service Offering

Many businesses try to offer everything to everyone and end up spreading themselves too thin. Instead of diluting your efforts, focus on the 20% of products or services that generate 80% of your profits.

Action Step:

  • Review your sales data and identify your most profitable offerings.
  • Consider reducing or eliminating low-performing products or services.
  1. Master Your Time Management

Many business owners fill their day with low-impact tasks (like checking emails or fixing minor issues) instead of strategic work that moves the business forward.

Action Step:

  • Use a Default Diary to pre-plan your week, ensuring you dedicate time to high-value tasks first.
  • Identify the 20% of activities that drive 80% of your results (e.g., sales calls, strategic planning, leadership).
  • Delegate or automate low-impact activities like admin, data entry, or responding to minor inquiries.
  1. Improve Your Team’s Productivity

Your team’s efficiency follows the 80/20 Rule, too. A small number of employees often drive the majority of the results, while others may require extra support or coaching.

Action Step:

  • Identify your top-performing team members and invest in their growth.
  • Conduct regular performance reviews to ensure that each role contributes effectively.
  • Provide training and resources to help the rest of your team step up to a higher level.

The 80/20 Rule is a powerful mindset shift—it encourages you to stop being busy and start being productive. Instead of trying to do everything, focus on what truly matters: your most profitable customers, your best products and your highest-impact tasks.

Take a moment today to audit your business—where can you cut out the 80% of effort that’s bringing minimal results? By making small, intentional changes, you’ll free up time, increase profits, and build a more sustainable, successful business.