If the 80/20 split had applied only to Italian landowners in the early 20th century, we wouldn’t be talking about it today. But it turns out that the rule (the 80/20 rule, or Pareto Principle), is relevant to much more than olive groves in Umbria. It’s a basic expression of what happens in the daily life of a small business.
How many hours do you work in a typical day? 10, 12, 15? The Pareto Principle states that 80% of your best work will be done in the most effective 20% of those hours. In other words, if you’re a morning person, you’ll have the most effect on your start-up’s success in the first few hours of your working day. If nighttime gets your creative juices flowing, you’d be wise to leave that important presentation until after dinner.
And it isn’t just time to which the Pareto Principle applies. Pluck business-related examples of the 80/20 rule at random from the internet, and you get:
You need to start by identifying when you’re most productive during a working day. As noted above, some people are morning people. Some are night people. And while an entrepreneur’s working days are often defined by circumstance – when can you get uninterrupted hours to sit at the laptop? When are your investors likely to be available? – everyone has a most-productive period. Screenwriter Robert Rodriguez (Desperado, From Dusk til Dawn) does most of his work in the first 1.5 hours of his day, sitting up in bed and bashing out scripts on a laptop. Hey, if that’s what works for you, become a pyjama entrepreneur. As long as you can figure out when your working brain is at its most effective, you can leverage your best smarts to streamline real tasks in the life of your small business.
Take the to-do list. Every small business owner has a list of jobs that goes on for miles. The Pareto Principle teaches a nice trick for cutting that list down to just a few feet. Look at the tasks most likely to generate highly positive business outcomes – like sales, or networking opportunities, or high-visibility advertising – and focus on them. In other words, allot the magic 20% of high-productivity time to the relatively small amount of work that’s guaranteed to produce high outcome. There’s no point in preparing that presentation when your work brain is just about done for the day. And if you’ve got a deadline looming, the way to beat it is to smash the bulk of the grunt-work while your mental and physical energies are at their highest.
The Pareto Principle applies to any distribution of time/income/productivity figures. And that makes for a very interesting effect. Within your top 20%, there’s a top 20%. In other words: if 20% of your customers account for 80% of your sales, then 20% of the 20% account for 80% of the 80%. In real terms, this means your top 4% of customers generates 64% of your income.
There’s a good and a bad side to this. On the good side, you can use the Pareto Principle to pare down your to-do lists and target your most effective working hours to your most important jobs. You can also segment your existing consumer base into its most profitable percentages, which – with the right application of social channels and analytics – may let you target more customers just like them. And you can reliably assign the highest priority business tasks in your day, week, or month to the ultra-high 4% of your time, when your brain is able to bring in 64% of your total results.
On the other side of the Pareto Principle, though, there’s a warning. It’s tempting to focus solely on the big 20% (or 4%, if you’re going to keep reducing the rule to find the highest possible return on your effort), at the expense of the remaining 80%. But here’s the thing. That 80% still generates some work, and some revenue. Reducing the principle down to distil your most effective and profitable time can generate great results. But ignoring the less-productive times in your working day, or cutting out the customers who only bring in 20% of your revenue, is a bad idea.
Focus on the good stuff, but don’t leave any profit behind. And do the most crucial tasks first, but don’t neglect to catch up on invoices or clean out your email.
The Pareto Principle is a big productivity hack for the entrepreneur who needs to parcel out her time in meaningful ways. If you’re daunted by the multitude of tasks required to set up a small business, it’s also a great way to break down your journey into achievable chunks. Sit down (during your most productive time of day, of course), write a list of everything you need to do, and assess which elements are the most critical to your start-up’s success. With a little preparation, a big dream, and a list created using the Pareto Principle, you can go a long way.
How your working environment affects your productivityWhere you work can affect how you work, which means finding the right work space is essential to your businesses. In this post we look at the different ways your work space could be affecting your productivity.
Working in an environment with bad air quality can affect your concentration and reduce your energy levels[1]. This is because the more oxygen the brain receives the more effectively it will work.
A good way to create oxygen is to include plants in your workspace. This is because plants are great at creating good oxygen. It has also been found that working near green environments can help with productivity and mental health.
Low levels of vitamin D can make us depressed and weaken our immune systems making us less productive. Find work spaces with as much lighting as possible or invest in SAD lamps. Poor lighting can cause fatigue, eyestrain and headaches. Windowed offices have been found to be 15% more productive than windowless ones. [2]
Research by MusicWorks found that 65% of owners of small and medium sized businesses say music in their workplace makes employees more productive and 40% believe that it can increase sales or results for the business.[3] Whilst it may be hard to find music to everyone’s taste, having music playing in the background can help make your business more productive.
When office temperatures are low workers are likely to make 44% more mistakes than people working at optimal room temperature. [4] The appropriate office temperature should be set between 16 – 24 degrees, who knew?!
Multiple screens can increase productivity by up to 50%, a VIBE study has found. [5] Make sure your desk is wide enough to consider extra monitors that may be needed. Having access to multiple screen will help you ease from application to application with ease.
[1]http://www.areasq.co.uk/news/impact-working-environment-productivity/
[2]http://www.lrc.rpi.edu/resources/newsroom/pdf/2003/Daylighting&productivity.pdf
[3]http://www.areasq.co.uk/news/impact-working-environment-productivity/
[4]http://ergo.human.cornell.edu/Conferences/EECE_IEQ%20and%20Productivity_ABBR.pdf
[5]http://research.microsoft.com/en-us/news/features/vibe.aspx
Proven effective ways to better manage stressIf you’re reading this, the likelihood is that you will experience some form of stress on a regular basis, however how you chose to let it affect you is in your control. Read below to find out some proven effective ways to better manage the stresses in your life.
You don’t need to run marathons or climb mountains, but a little bit of exercise a day can help you clear your head and de-stress. Any form of physical exertion will release endorphins which can help relieve stress and tension. Getting some fresh air by going for a walk in the morning, on your lunch break or in the evening will help you to clear your head space and add some clarity by giving you something else to focus on. You may not fancy it at the time but trust us; it will do you the world of good. Scientists believe that regular exercise can reduce overall levels of tension, elevate and stabilize mood, improve sleep and improve self-esteem. [1]
Whilst busy schedules can make catching up with friends and family difficult, make sure you’re finding the time to socialise outside of working hours. By meeting up with friends and family you can offload the troubles to those closest to you; or you could even ban the mention of work and focus on something else for a while.
In a world full of smartphones and tablets hooked up to Wi-Fi, it can often be hard to leave work in the office (or physically leave the office yourself). It’s tempting to make sure you’re keeping on top of things by checking emails whilst at home, but by never switching off you’re bound to be making your stress levels worse. Give yourself a cut-off point, for example make the decision that you won’t be turning your laptop on once you’re home, or no checking emails past 8pm. Setting yourself a limit and giving yourself space to switch off and focus on something other than work will help you feel calmer and more relaxed.
When you’re stressed your judgement can often be clouded by negative thoughts. Instead of feeling like there is no way out, channelling your negative thoughts into more positive/manageable ones could make a big difference. Try thinking around the problem that’s causing you stress; could you ask someone for help or is there an option you haven’t explored? If you can’t think of a solution straight away, try doing something to take your mind off it and go back to it later. It’s believed that having a positive outlook enables you to cope better with stressful situations, which reduces the harmful effects that stress can have on your body. [2]
Good time management can often make you feel more in control of the things that are causing you stress. Begin your day by writing yourself a list, and then prioritise that list beginning with the most urgent and ending with the least. If you feel you have too much to do, see what items you can delegate to your colleagues. Don’t forget that if you can’t physically take on any more work, it’s ok to say no!
Tiredness can make you feel agitated and can increase stress levels. 21% of adults have reported increased stress levels when they don’t get enough sleep. [3] Getting a good night’s sleep can help you wake up feeling fresh and often gives you a new perspective on the problems that are causing your stress levels to rise. Getting enough sleep leads to improved mood and well–being. [4]
[3] http://www.apa.org/news/press/releases/stress/2013/sleep.aspx
[4] http://healthysleep.med.harvard.edu/need-sleep/whats-in-it-for-you/mood
5 tips to building effective lasting relationshipsIn an increasingly digital world, it’s fair to say that it can be a challenge to build lasting business relationships. So we’ve put together a list of important considerations to help you sort the wheat from the chaff and build, what we hope will be, long lasting effective business relationships.
How can you expect to meet likeminded people if you yourself aren’t presenting an authentic version of yourself to the people you meet? People want to connect with genuine, likeminded people in business. People who share the same visions and values but not necessarily always the same views are more likely to build lasting relationships than people who only present a staged version of themselves.
You don’t need to build a relationship with everyone you meet. It doesn’t matter how ‘influential’ or ‘well connected’ people are, if they aren’t relevant to your business or goals you don’t need to try and force a relationship with them. A small group of worthwhile connections will prove to be far more significant than a bunch of people on an entirely different wavelength.
We deal with difficulty, challenge and change on a daily basis. Showing that we can be vulnerable in these situations only makes us more human and adds to our authenticity. Vulnerability should never be seen as a weakness to those who really ‘get’ us. Cautionary point however, this is usually best saved for a select few rather than in full blown public view. The world and his dog do not need to witness every bump in the road.
If you want to really get to know someone, take them out of the working environment and spend time getting to know one another over a coffee or lunch. This allows you both to drop your guard and should also encourage the conversation to take a more relaxed turn. Nothing too personal mind, no need to air your dirty laundry at this point, but you never know you might start talking about what you get up to at the weekend and find you have a mutual hobby. Chances are you would have never had these conversations in the formal setting of a work space.
By this we mean, don’t fixate your preconceived expectations of people onto them. If you project your expectations of people onto them, chances are they fulfil them. Instead understand that people are rarely exactly as we want them to be, that way you are not setting yourself up for disappointment.
It’s fair to say co-working gives you a chance to work in close proximity to a whole multitude of people who you may just find turn out to be the business connection you never knew you needed.
7 reasons to start coworkingThe co-working movement is changing the way we work, with professionals shunning the daily routine of the office and embracing the flexibility and collaborative potential of a co-working space. Each year, freelancers, entrepreneurs and even corporations turn to co-working spaces to get more fulfilment out of their working lives and reach their true potential. Here’s why…
You’ll be inspired everyday – A co-working space is not just an alternative to the coffee shop.
A co-working space is where you sit elbow to elbow with like-minded thinkers, makers and do-ers. If you’re finding it hard to get motivated, having a co-working community around you will energise your work flow and catapult you to greater productivity.
Your network will grow exponentially – We don’t hire space, we build communities.
Literally anyone can co-work. Developers, designers, even deejays are co-workers. Imagine what you can learn from working alongside like-minded professionals across disciplines. Deskmag reports 90% of people feel more confident when co-working and that’s because you’re not network in a co-working space, you’re working amongst people like you in a mutually supportive environment.
This isn’t the water-cooler effect, it’s the co-working movement…
… and you’ll be more productive than ever – There’s a reason 64% of co-workers are better able to complete tasks on time.
Creativity is contagious. Being surrounded by a hardworking community of professionals makes you more focused and more productive. Not only is it easier to solve problems in a skill-sharing environment, it’s also easier to get to the bottom of that list of tasks before lunch.
And no surprise here, when you’re more productive, you earn more. Deskmag reported three fourths of co-workers reported a significant bonus at year’s end in 2014. As if a bigger paycheque wasn’t enough, 70% of co-workers also reported that they felt healthier than in a traditional work setting. Win, win!
You’ll meet friendly people (that might change your life) – Business used to be about competition, now it’s all about collaboration.
When like-minded people get together, problems get solved. We might live in an age of wireless communication, but more than ever people are realising that geographic proximity is an irrevocable factor of creativity.
Ever heard the saying you’re the sum of the people you surround yourself with? Well in a survey by Deskmag 71% of people reported feeling more creative when co-working. That’s because they’re surrounded by creative, motivated and like-minded people working towards the next big success. We said it earlier, but we can’t emphasise it enough- productivity is contagious, you just need to be in the right place to catch it!
You’ll work in more beautiful spaces than ever before – And your creative output will benefit from it. Us&Co (Street name) has been designed with you in mind. We want each and every person to work in an inspiring location which never fails to feed their motivation day by day, hour by hour.
The 9-5 is dead, long live the flexible worker- Space and place are irrelevant- the future of work is flexibility.
Digital disruption is reshaping the work environment, giving power to the individual and allowing them to choose their working hours and environment. 40% of the workforce will be freelancers, independent contractors and solopreneurs by 2020 and these entrepreneurs are choosing co-working spaces as the place they reach their potential. With beautiful settings, greater freedom and a greater chance of higher future earnings who can blame them?
Want to find out more about why thousands of people worldwide are choosing to co-work? Get in touch on Facebook or Twitter and talk to one of the team!
References:
http://www.fastcompany.com/3004788/future-coworking-and-why-it-will-give-your-business-huge-edge
http://time.com/money/3586004/coworking-why-it-works/
10 inspirational videos to get you out of bed and into the boardroomWe’ve scoured the web for the 10 most motivational videos you could imagine. So whether you’re finding it hard to wake up in the morning or you need a dose of inspiration for that next big meeting, sit back and prepare for a big hit of inspiration.
You can’t help but go away from this heart-felt talk from Hollywood funny-man Jim Carrey feeling like the world is yours for the taking. The standout moment comes when Jim talks about his Dad (at about the 10:00 min mark)
“My father could have been a great comedian but he didn’t believe that was possible for him. So he made conservative choice. Instead he got a safe job as an accountant. When I was 12 years old, he was let go from that safe job and our family had to do whatever we could to survive.
I learned many great lessons from my father, not the least of which was that you could fail at what you don’t want, so you might as well take a chance at doing what you love.”
The eighth wonder of the world, David Blaine, talks about how he confounded medical science and held his breath for 17 minutes. And here we were worrying about next week’s deadline…
Take 1 minute from your day and learn the untold story of the failures of some of the most recognisable names of our time. In the words of Henry Ford “Failure is the opportunity to begin again more intelligently.”
Arnold Schwarzenegger’s 6 Rules of Success mixed with footage of extreme sports? It doesn’t get much more inspirational than this.
The odds were stacked against Nick Vujicic. Despite being born without Limbs, Nick’s inspiring resilience shows you there’s always a way.
A video about a father and son completing an iron-man competition together. What makes them special? Rick, the son, can’t talk or walk and Dikc, the father, has a heart condition.
Footage of athlete Giavanni Ruffin mixed with a fable from Eric Thomas (AKA The Hip Hop Preacher). If you like your inspiration served with a hot slice of tough love, then this is the one for you.
It’s that old urban myth, starting at the bottom and trading all the way up to a house. Except Kyle MacDonald actually did it. From a red paper clip, to a fish pen, all the way to a beautiful house. It just goes to show, with the right idea and a lot of grit, anything can happen.
As Jill Bolte Taylor was having a stroke, she felt her brain functions slip away one by one- speech, movement, understanding. She later studied and remembered every moment- seeing a life-threatening event as an opportunity to develop human understanding.
Grandma can drum? This clip might not win anyone a Nobel Prize, but it’s a good reminder that people can surprise you with skills you’d never guess they had.
Morning routines – lessions to learn from the world’s most successful leadersBrian Tracy, author of the bestselling time-management book ‘Eat That Frog’ took his title inspiration from something Mark Twain once said:
“Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day.”
This is a great metaphor for how you should approach your mornings, but in reality what does it mean? One way of interpreting it could mean writing a list of tasks in order of priority which you need to get complete during the day. Use that list to focus on your tasks, and complete them throughout the day. You could even write your list the evening before so it’s ready for you as soon as you get to your desk. The cycle is endless but hopefully fruitful.
In a commencement address in Stanford in 2005 Steve Jobs said:
‘For the past 33 years, I have looked in the mirror every morning and asked myself: “If today were the last day of my life, would I want to do what I am about to do today?”
And whenever the answer has been no for too many days in a row, I know I need to change something.’
We’d agree, if you’re not satisfied by the work you’re doing consider what you could do to change it.
Every morning Benjamin Franklin asked himself “What good shall I do today?” This may sound a bit contrived but it worked, and he lived his life with intention. Ask yourself this question in the morning and see if it helps bring focus for the day ahead.
Even though fitting in some extra shut eye may sound more appealing than hitting the gym, exercise plays an integral role in gaining focus and clarity of the mind. Anna Wintour, Vogue Editor-in-Chief supposedly plays tennis each morning by 5am, whilst Barack Obama claims to always find 45minutes to fit in some physical activity. Break yourself in easy, no one is asking you to run a half marathon in the morning, but a 15 minute home work out will still release those vital endorphins that help you start your day the right way.
The Dalai Lama is said to wake by 3am every morning and, amongst other things, one of the first things he will do is meditate. Finding the time to fit in some meditation will clarify the mind and help you focus on the day ahead.
A good morning routine helps you start the day on the right foot preventing you from playing catch-up. Decide how you will approach your mornings and commit to a routine. Developing a good routine will send the right signals to your brain that it’s time to get into work mode.
Reclaim your lunch break: productive ways to spend an hourBreaks are an important part of the work day as they help you re-group and in turn make you more productive in the afternoon. However many of us rarely allow ourselves a break in our work day, and far too often we end up working through our lunch break in an effort to get more done. Whilst the thought of working through your work break is tempting, by using that hour away from work, but on something productive, you may find that the work you produce in the afternoon becomes greater in quality.
Getting up and away from your desk is a great way to clear your mind and help give you a fresh perspective. Even better if you can get out of the office and go for a walk. It doesn’t have to be a long walk either. A quick ten minute walk around the block can give you a much needed endorphin rush and boost your creativity; making you feel refreshed and energised once you’re back at your desk.
Meditation and yoga are all the rage at the moment, and for a good reason. Meditating has been proven to increase a person’s ability to withstand stress, lower blood pressure and clear the mind. Some of the greatest leaders swear by the power of meditation as a way of clearing their thoughts and allowing themselves to re-focus and re-group.
We’re sure you’re all aware of the benefits of reading. Not only does it help expand your knowledge and vocabulary, it can also help you escape to another world for a little while. Spending time to read the next chapter of your book can help you relax and calm down after your morning activities.
Do you have your own blog, or have you ever fancied penning your own novel or poetry? Use your time to productively work towards those goals. It will keep your brain working, but in a creative way that is outside of your work place.
With plenty of free online courses all over the web, spend your lunch hour learning something new. How about trying to learn a new language or expanding a skill that is within your current set that you have been meaning to work on but never got round to?
Sounds simple enough but it’s surprising how many people don’t actually eat during their lunch break. Eating is what a lunch hour is all about after all. Eating a healthy balanced lunch can often give you the energy you need to power through the work you have planned for the afternoon. Just make sure you’re eating the right foods.
Do you keep meaning to go to the bank or pop to the post office but find yourself just missing their opening hours? Use your lunch break! Write yourself a list of jobs that need to be done (that aren’t work related) at the start of your week and make it your mission to get them completed by the end of the week.
If you want to expand your mind, but also want to get out of the office and move around, why not see if there are any local exhibitions nearby? London is full of museums and art galleries, many with free entry, waiting for you to explore.
Decide how you are going to regain your lunch break and you may be surprised by the impact it will inevitably have on the way you approach your work in the afternoon.
10 steps to sending the ultimate pitch emailSocial media offers the perfect way to build a relationship with the person you’re sending a pitch to, before you even hit send. Do a bit of digging and learn about the recipient’s background in as much detail as possible. If you’re a connection across a social channel they may be more likely to respond to your email when it lands in their inbox.
Use your research skills to find the right person in the organisation to send your email to rather than simply sending it to a generic contact mailbox. There really is no need for the middle man, do your research and hopefully you will get a response from the person you are really after.
Personalised pitch emails are the only pitch emails you should be sending! Make sure you address the person you’re sending the pitch to by name, customise your copy to make sure it’s noticeable that you have done your research and know about their background and field of work. This will show that attention has been made which will show the recipient that you have selected them to pitch to rather than sent out a mass of emails.
See if the organisation you’re pitching to have any guidelines on how they expect pitches to be submitted. Make sure you adhere to any guidelines and follow the advice they give you. This shows you’ve researched the organisation and listened to what they have to say.
Do the 10 second test. If the recipient has only 10 seconds to read this email are they going to be drawn in straight away? Make the information you’re providing as brief as possible without missing out any key information. Your aim is to make a big impact with few words. Cut straight to the facts and make sure you link to any research or significant data.
Whilst you want to share as much information as possible, hold a few things back. What you don’t want is for someone to read your pitch and take your key ideas then claim them for themselves without giving you the credit you deserve. If you leave them wanting to know more, they are more likely to reply to your email.
Explain the ways that the person receiving the pitch will benefit from the collaboration as well as yourself. If there is no benefit for the recipient, they’re not likely to go forward with what you’re pitching (no matter how good it is). A good pitch is always mutually beneficial.
As tempting as it may be to make things sound even better than they already are, don’t over exaggerate any of your points. Stick to the facts and let your writing win you the pitch, rather than promises that can’t be kept.
Following on from the previous point, if you’re stating any facts such as “first in the market” make sure your claims can be substantiated so that your pitch is credible.
If you haven’t heard back in a couple of days, send a follow up email to see if the email was received. If you haven’t done so already, connect with the recipient of your pitch email on social media, seeing this connection request may prompt them to address your unopened email, and keeps your name fresh in their mind. Cautionary note: following up is always a good idea, harassing a response out of the recipient is never a good idea!
5 questions to ask yourself before you quit the day jobWe all have, what we consider to be, good ideas; however very few of us have actually looked into how successful those ideas would be if put into practise and built into a business plan. What evidence have you found that your idea will be a success? Do your research, seek the opinion of others and make sure you have evidence that will back your idea up. This is especially important if you are going to look for investors to help fund your venture.
Whilst it is true that if you deliberate for long enough, you’ll conclude that the timing will never be right; you also need to consider timings that will impact the success of your business. Consider the market you will be selling your business in, is there a best time to launch? Will you be burning bridges in your current role if you left? Have you had the time to create enough capital to get your new business up and running and still pay your daily bills? On the flip side of this, don’t leave it too long before you start. Trust your judgement and find a middle ground.
Before you hand in your notice look into how much money will be needed to build your business. Create a realistic projection of the cash flow needed to put your business plan into action, compare it against the money you have saved and consider the funding you would have left to live on whilst you build your business. It could take numerous years before your business begins to turn a profit, or simply break even, is there enough money in your account for this?
No person, no matter how fantastic they think they are, can build a business by themselves. Do you know the people who you would like to hire? Have you considered how many people you would need to hire? If you need investors have you spoken to them? Using the connections you’ve already made from networking, get in touch with people who will able to help you in your process of beginning a business. A few people to consider are those who might be able to build you a website, develop your brand or set you up with the relevant software packages.
Whilst it’s always advisable to have a positive outlook, are you realistically prepared for the worst case scenarios? If your business doesn’t succeed or you hit a bump in the road that delays your plans for the foreseeable future, do you have a plan to see you through? Whilst it may seem futile planning for failure, when beginning a business, you need to prepare for all eventualities!