The 80-20 Principle


Think about it. What if you could get 80% of results through 20% right efforts? Wouldn’t be amazing?

All you need to learn is the right techniques to get the productive results you want.

Today’s book is – the 80-20 principle, by richarad Koch. – the secret of achieving more with less. What are you going to learn from this book?

What will you learn?

What is The Pareto Law – of 80-20 principle

Why to use this law?

How to use this law?

Where can you use this law?

In 20th century, philosopher Vilfredo Pareto introduced a concept of 80/20 principle. Where he said – cause and effect are not balanced. Because of 20% cause, you will get 80% results.

For example – In your business, because of 20% best employee’s productivity your business would be thriving. 20% bad drivers are responsible for accidents.

There are many similar examples, if you look around. Now the main questions why should you use this rule? –

  • For efficient time management
  • To increase productivity and improve performance
  • To do the smart work
  • Most importantly – with less smart efforts, you can live quality life. To do that – learn to use 80-20 principle

Now let’s understand how can you implement this rule in your business?


1 Give attention to right 20%

Yes, focus on those 20% products, which give you the maximum profit. It can be 2 products out of 10 products you sell. Same goes with service. If you are providing 5 services, give attention to 3 which gives you maximum benefits.

2 Improve another 80%

The products which are giving you less profit, focus on it. How can you improve it? What you need to change? How you need to market it differently? What is target market?

For example: if you are selling only women centric products, start selling man centric as well.

Widen your target market.

When you are doing any business, you need to ask the right questions for your product or services.

Like –

1 From which products am I earning the most?

2 In which products my expense is more rather than profit?

3 which segment I need to focus on?

Answer these questions and you will get the ideas of how you need to improve your strategy.

Now let’s understand what you should avoid, while following this principle?

1 Never close the segment which is giving you less profit. May it be product or service.  Rather learn to improve that segment.

You can try different strategies and do less investment in those products but don’t just shut it down.

In any business, customers, clients are very important. If you want to give maximum output to your clients then start implementing 80-20 principle for your clients as well. Let me tell you how can you do that with simple strategies:

1 First is Find out who are your 20% clients? – who buy your products or services most?

Can you give them something special? 

How can you keep them engaged? Do that. For example, if you selling jewelry products, then give them tips and give them information about latest trends in jewelry. They will get information and your products as well.

Now let’s talk from company perspective. There will 20% employees in your company, who is giving you maximum output. How can you keep them?

1 train them when required.

2 give them extra perks.

3 give them opportunity to inspire other employees.

4 learn the techniques from 20% best performers and implement it in your whole org.

So these were the techniques to implement 80-20 in your business. Now how can you use it in your life as well? Even if you spend 20% of your time and get productive results. How can you do that and live the rest of your life with fun and peace. Let’s get into that.

You don’t need to work constantly. You don’t need to focus on big options to achieve your life goals. Rather you can select small but effective options which can fulfill your goals.

  • Focus on what is good. Don’t indulge in useless thoughts.
  • Take rest – you don’t need to stay busy all the time. Rather work smartly.

Now its time to ask some questions to yourself:

1 in which time your work with more productivity and get work done? Day – night – any fix hours?

2 in which time you try but cant work and finish your tasks?

3 what is the reason behind it?

Find the right and best time for you.

Its not compulsory to work 7 days a week. You can work 2 days in a week with productivity and get results.

That’s what 80-20 principle tries to teach you. That’s it for today. If you want to make your productive schedule and work effectively then contact me. I will teach you how to do that and get your goals achieved with 20% efforts.

See you in the next session.