The Pareto Principle or Distribution, also known as the 80/20 rule, is applied in diverse fields of knowledge and carries great weight in the world of business in areas such as marketing and sales. In short, the principle states that just 20% of your actions will produce 80% of your good results. Today at IBMH, we’ll share with you how you can apply the Pareto Principle in furniture hardware businesses and how the 80/20 rule can help your business grow.
The Pareto Principle in furniture hardware businesses: the 80/20 you must know
If you look carefully, this rule, which describes a statistical phenomenon, proposes something very valuable: how to optimize your business. Let’s take a look at what the Pareto Principle says specifically when applied to a company.
- 20% of your products make up 80% of the business’ total sales volume
- also 20% of your clients generate 80% of revenue
- and what is very important… 20% of tasks or activities produce 80% of the results
It’s important to take care of that 20% as if it were gold. You can’t neglect any aspect of it in order to tend to projects, clients or products that have a lesser impact on your business. The truth is, there are some activities or tasks which actually bring you closer to your objectives, and those are the ones you need to take good care of.
How to apply the Pareto Principle in furniture hardware businesses to be more productive
The first and most important step is to reflect and choose that 20% of daily tasks that are responsible for 80% of value. To do this, you should set aside a specific time of day when you will define which of your pending tasks make up that 20%. At the end of the previous day or at the beginning of the next day are usually the best options. You’ll need peace and quiet to get everything organized without distractions. Take as much time as you need to determine which activities are important.
Keep in mind that…
Defining your company’s objectives will be key in reaching the level of success you want
First, you need to be very clear on what your main objectives are. It often happens that managing an intense daily workload keeps you from considering what your real objectives are. You should try to focus your efforts, which means you need to make your goals as specific as possible. Write them down where they will be easily visible so that you can see them anytime, every day. In such a demanding daily environment, you need to have a compass pointing out the path you should take. That’s why it’s important to always have these goals handy and to review them each day.
Distributing your work hours according to the Pareto Principle in furniture hardware businesses is highly advisable
Many times, people find themselves doing tons of tasks that don’t accomplish anything in terms of achieving their main objectives. This is one of the biggest things getting in the way of the success that you want for your business. To be more productive, you need to think about how you are allotting your work hours for each task. Assign more hours to tasks that bring you closer to the goals you have set than you do to tasks that are less important.
Knowing how to choose the right moment to do high-value tasks is important, too
Our minds are fresher, quicker and more lucid in the first hours of the day. This is when you should take care of the things that are truly important or the ones that are the most complicated to do. As the day goes on, our energy gradually fades, so the end of the day isn’t the ideal time to handle important or complex matters.
Remember the Pareto Principle in furniture hardware businesses and the 80/20 rules when making important decisions—you’ll find it very useful. Give it a try!
At IBMH, we help you to minimize the amount of time you spend managing hardware purchases from China for your company. Plus, we offer a comprehensive service that covers the needs of your business so that you can boost your profits. If you want to learn more about how we can help you, contact us today!