What are you doing today to “Find the 5 percent?”
We’re serious when we say this – you remember Pareto, the geneticist, philosopher, Italian economist? He noticed that 80 percent of the land in Italy was owned by 20 percent of the people. Applying “80/20” is easy to do just about anywhere – 80 percent of your joy comes from 20 percent of your relationships, 80 percent of your company’s profits come from 20 percent of your customers.
It’s a great theory – but I’m going to argue that it’s WRONG.
Today, it’s more like 95/5.
You could talk about the distribution of wealth, you could talk about your company’s profits, or you could talk about your relationships.
Find the 5 percent. Be the 5 percent.
Example: I sat down last week for a meeting with a couple Chicago-area entrepreneurs. (Let’s assume, for a moment, that their business sells computer hardware, so they have something in-demand from just about everyone.) Their sales strategy involved going after the Global 2000 companies and finding out who held key relationships in their industry with those Global 2000. Then going after those relationship holders.
Now we’re talking.
The 80/20 route would have started with the Global 2000 and stopped there. But, if we’re talking computer hardware, is it easier for them to go after 20% of the market (the Global 2000), or finding the INFLUENCERS for the 5%.
Good for them. But what about you?
Take a look at your clients, your customers – you don’t have to rank them, but find out where the pain is coming from. Is it the 80 percent? Or is it more like 95 percent?
Find out where the joy is coming from – where the challenge, the euphoria, the fun is coming from. Probably, again, a smaller sliver than even Pareto would have thought.
Oh, and in your own business, your own personal life – are you being the 5 percent? Adding value in your personal relationships? Delivering in business? If not, what habits do you need to start to get into that 5 percent?
Find the 5 percent!