How You Can Quit Your Day Job and Make Even More Money by Becoming Your Own Time-Freedom Revolutionary

First a little Background...read this if you are serious about setting yourself free by exploding your own home-based business.

The world famous business consultant, Dr. J. W. Juran coined the name Pareto principle. He named it after an eighteenth century Italian economist who discovered that 80% of the wealth in Italy was controlled by 20% of the population. The Italian economist was named Pareto, so Dr. Juran called it the Pareto principle.

Dr. Juran, and a huge number of business professionals proved that the same principle applied to the entire spectrum of business activities. They found that anytime a process was involved the Pareto principle was at work. About 20% of the things being done accounted for 80% of the results.

It applies to quality control, management, production, sales, marketing, customer service, strategy, cost containment, decision making, inventory control, project management, negotiations, and more. The Pareto principle has become widely accepted and used by all kinds of businesses around the world to get and keep a competitive advantage. For instance in 1963 IBM discovered that about 80 percent of a computer's time is spent in running about 20 percent of the operating code. IBM rewrote its software to make the most used 20 percent faster and more efficient than the competitors machines. Today, the Pareto principle is commonly accepted in the manufacture and distribution of computer hardware and software alike.

You may have heard about the Pareto principle...disguised under another name

You may have heard it called the 80/20 rule or the 80/20 principle. The basic premise of the principle is that 20% of the people, forces, factors or causes typically produce 80% of the results, effects or outcomes. It's at work everywhere you look! Here are some common business examples.

In sales 20% of the sales people produce 80% of the sales, profits or both.
In merchandising 20% of the assortment accounts for 80% of the sales.
20% of the activities in production create 80% of the quality problems.
20% of the work force accounts for 80% of absenteeism.
20% of the customers account for 80% of the sales or profits...or both.

The list could go on and on and on. Everywhere you find a process...a cause, you’ll also find the principle at work. You don't have to look very far to see proof of this all around you. A small percentage of songs, movies, or books written produce the lion's share of sales, profits fame and fortune. And, look at the distribution of salaries among professional athletes today. Those at the top of the heap, the few whose names are equivalent to national brands earn many times the average annual income.

If you find 80/20 stuff a little hard to swallow consider these examples...

Here are a few examples given by Richard Koch, author of The 80/20 Principle: The Secret to Success by Achieving More with Less, Living The 80/20 Way: Work Less, Worry Less, Succeed More, Enjoy More, The 80/20 Individual: How to Build on the 20% of What You do Best and The 80/20 Revolution

In England, 79.8% of the people live in 20.3 of the cities.
Fewer than 20% of media stars hog more than 80% of the limelight.
More than 80% of the books sold come from 20% of the authors
Fewer than 20% of scientists produce over 80% of the scientific breakthroughs.
In 1985 Chinese residents comprised less than 3% of the population of Indonesia, but owned 70% of the wealth. The Chinese are only a third of Malaysia's population, yet own 95% of the wealth.
Out of 6,700 languages, 100, just 1.5%, are used by 90% of the world's people
Over 80% of the wealth created by new companies comes from less than 20% of the people starting them.
20% of countries, with less than 20% of the world's population, consume 70% of its energy, 75% of its metals and 85% of its timber.
Far less than 20% of the Earth's surface produces 80% of its mineral wealth.
A small percentage of meteorites falling to Earth produce over 80% of the damage.
Far fewer than 20% of wars produce more than 80% of the casualties.
80% of the baby seals in Alaska that survive come from 20% of the mothers.
Fewer than 20% of clouds produce 80% of the rain.
Less than 20% of all recorded music is played more than 80% of the time.
Fewer than 20% of museum's inventories are on display more than 80% of the time.
Of investments by successful venture capitalists, 5% provide 55% of cash, 10% produce 73% and 15% yield a total of 82%
Over 80% of food comes from less than far less than 80% of land.
Biologist Richard Dawkins estimates that all of the species living today constitutes 1% of the species that ever lived on Earth.

Obviously it isn't always exactly 20% of the causes that produce 80% of the outcomes. Maybe 30% of the causes produce 50%, 60%, 70%, 80%, or 90% of the outcomes. Maybe 5% of the causes may produce those same percentages of the outcomes. It varies, but a small percentage of causes consistently produce a large percentage of the outcomes.

Dr. Juran called the small percentage of causes the vital few and the remaining causes the trivial many.

Unleashing the power of the 80/20 principle lies in two areas:

Discovering and using the Vital Few to produce the outcomes we want, while relegating the Trivial Many to the trash bin, delegating them, or doing them only when absolutely necessary.
Taking a page out of Dr. Juran's quality control playbook, finding the Vital Few that cause the biggest problems in our lives, the ones blocking our success -- and either fixing them or eliminating them.

So, when it comes to creating our own home-based business success, here's what we can anticipate...

Typically, if we do what the majority of people do, 80% of what we really want to achieve will be attained in 20% of the time we spend doing things.
Conversely, 80% of the time will only produce 20% of the desired outcomes.
Some small fragments of our time, the vital few, are much more valuable than all the rest.
To really use this to our advantage required that we do something remarkable. If we are to get the biggest benefits from knowing about "the vital few" we should use that knowledge to embark on a personal quest to become time-freedom revolutionaries. (Mull that idea over. It could grow on you.)
We should identify a company, products, services, opportunities, activities and people that either are the vital few or will help us to be among the vital few and focus our attention on them like the life of our businesses depends on it. Chances are...it does.
We should find out what the top producers, the vital few, are doing to succeed and model them. We should model the best and forget the rest.
We should identify how we are doing the things that produce the results we want (the vital few) and perfect them.
We should stop doing the trivial many wherever possible. At the least we should relegate them to lowest priority and only do those that must be done.

Are YOU ready to tap the power of the vital few to build an extraordinary home-based business...as your own time-freedom revolutionary?

If you're ready to explore how to tap the power of the Vital Few, subscribe to our free... Smart Home Based Business Digest (SHBB Digest). There is no obligation, and I won't high pressure you or twist your arm trying to get you to do something you don't want to do.

Live long, love life and be well.

Harold

P.S. If...and only if... you are seriously interested in building an extraordinary home based business and you are among the vital few who take action...call me at 208-362-6611.