Neil O'Brien of Quantum Business Solutions will deliver a presentation on the following:
It is almost certainly true that your business makes 80% of its profits and cash from 20% of your services/clients.
As business owners if you accept this statement, then it can have major implications for your business. An example would be if your business has 10 clients, then 2 of those make the same profit as the other 8. And if you look at it a bit closer, you will find that some of those 8 clients are losing you money.
Neil likes to call the most profitable ones your whale clients and the loss makers, your sardines.
Over time, what you need to do is either move your sardine clients up towards your whale ones or drop them completely. With some clients he has found that a price increase would make them more profitable or the client will go.
You want to maximise your whale clients and minimise your sardines.
80:20 time heresy. There is no shortage of time. We only make good use of 20% of our time. The 80:20 principle says that if we doubled our 20% activities, we could work a 2 day week and achieve 60% more or earn 60% more.
The 80:20 principle is very clear on one thing. Pursue those few things where you are amazingly better than others and that you enjoy the most!