80/20 Rule Time for Technology Business Owners

Normally I like to reserve the shout out to bring in the 80/20 rule for the end of the year at a minimum and every quarter at a maximum. But I think it may be time to seriously pull out the rule right now on your services.

Most businesses that are savvy enough to use the 80/20 rule apply it as they should to clients, marketing campaigns, employees, contractors, vendors and the like. But often overlooked is the application to the types of services and/or products your business is offering.

In a previous post I talked about niche-ing your business tightly right now as being a great way to shield yourself from the bad going on in the economy and allow you to build hero status to a select group or 2. This will absolutely help keep a handle on your resources by squeezing your client offerings a bit but it doesn't do the whole trick.

The next step is to look at the services and products being offered to your tight set of niches that you are now working within. What you're looking for is that 20% of products and services that's driving your revenue (ie deriving 80% of the sales). Sometimes it's more like 90-10 or 75-25 but you get the point I'm sure. If you are having trouble seeing the forest from the trees on this one, get help from someone on the outside. Seriously.

The bottom line is that your ship is as tight as it can be when you can concentrate on a very targeted audience and deliver to them what gives you and them the best bang for the buck. You look good, they feel good and both of you have a healthier company for it by not wasting any time, people or money.

This is what being a trusted advisor and bringing value to the table is all about. Nobody wants to go out of business. As a much needed provider of technology based services, you are an important part of keeping your clients and this economy alive.

Applying the 80/20 rule to everything in your business including what services and products you are going to provide is an intelligent move made by true entrepreneurs that understand running a company like a real business is not an option in regards to survival and prosperity for you and your clients.


To Your Business Success-

George Sierchio
The Consultant's Coach