The Pareto Principle ...

Named after Italian economist Vilfredo Pareto, who identified its applicability in a number of areas, the Pareto Principle suggests that roughly 80% of the effects come from 20% of the causes.

This Principle appears to impact upon many different aspects relevant to entrepreneurs and business managers. For example:

• 80% of your profits come from 20% of your customers
• 80% of your complaints come from 20% of your customers
• 80% of your profits come from 20% of the time you spend
• 80% of your sales come from 20% of your products
• 80% of your sales are made by 20% of your sales staff 

From these indicators it would seem that you could easily make dramatic improvements in profitability by focusing on the most effective areas and eliminating, ignoring, automating, delegating or retraining the rest, as appropriate.

For example, in the first point above, if you stop dealing with the 80% who give you only 20% of your profit (seems OK doesn’t it?) then what happens?  You have simply ‘raised the bar’ in your business and within a short period of time the 80/20 Rule will once again apply!

If you would like a copy of the previous Business Boosts relating to the Pareto Principle, please send an email to bizplan@brightwater.com.au with 'PARETO' in the subject line. 

Anthony Davis

Small Business Failure ...

According to a recent multiple choice survey of more than 1000 owners of Australian Small and Medium Enterprises (SMEs), the percentage of respondents and reasons identified for small business failure are:

Ø  61% an inability to manage costs;

Ø  50% inexperienced management;

Ø  50% poorly designed business models or no business plan;

Ø  49% insufficient capital;

Ø  37% poor or insufficient marketing;

Ø  35% insufficient time managing the books.

Only 26% identified failure to seek professional advice as a key reason for failure, while 70% trusted their ‘gut instinct’ over any professional advice.

The survey was published by accounting software provider CCH and global information services group Wolters Kluwer.  Chief Executive of Wolters, Russell Evans, told SmartCompany the majority of SMEs which shun professional advice were doing so possibly at their peril.

The Brightwater Business Development Program has been designed to address many of the issues outlined above.  If you have considered Brightwater Coaching in the past and are still to take the first step … call me on 1800 242 366 and ask what Coaching can do for you and your business.

Written by Anthony Davis

Failing Forward ...

In his book, Failing Forward, John Maxwell discusses how: 

"the difference between average people and achieving people

is their perception of and response to failure".

Here is a summary of the main 15 points:

1.    Realise there is one major difference between average people and achieving people;

2.    Learn a new definition of failure;

3.    Remove the 'you' from failure;

4.    Take action and reduce your fear;

5.    Change your response to failure by accepting responsibility;

6.    Don't let the failure from outside get inside you;

7.    Say good-bye to yesterday;

8.    Change yourself, and your world changes;

9.    Get over yourself and start giving yourself;

10.   Find the benefit in every bad experience;

11.   If at first you do succeed, try something harder;

12.   Learn from a bad experience and make it a good experience;

13.   Work on the weakness that weakens you;

14.   Understand there's not much difference between success and failure;

15.   Get up, Get going, Get over it.

Re-read through each of these points slowly. There is tremendous wisdom in these words! Major on what is important!

Written by Anthony Davis

Eliminating Incompletions!

Christy Donner, owner of Innovative Strategies, said that the key element in the concept of “eliminating incompletions" is to finish your unfinished business.

There are projects, relationships, and situations ‘unfinished’ which continue to consume personal energy. Energy is drained even when you are not thinking of the incompletion consciously. This could be as simple as: the dent in my car that I've been meaning to fix; the college degree I stopped short of getting; etc.

A clue that something might be an “incompletion” for you is having a feeling such as guilt, remorse, regret, shame, anger, denial or sadness. Look inside to see if any of these ring a bell. You are the only judge.

Incompletions show up in four areas in your life: physically, in relationships, in your surroundings, and in your financial affairs.

Once you eliminate incompletions, you'll see/feel an immediate burst of energy. As you do you are likely to experience more confidence, more time, fewer problems, and more opportunities.

Start by making a list of the incompletions in your life, and start chipping away at the list.

Anthony Davis

Day Planning!

Day Planning!

How often do you say that you are overwhelmed with all the tasks you need to do? Here are some simple steps you can take to help this situation.

The Quill ‘Day Planner’ journal, has these principles printed at the bottom of every page:

The Six Principles of Time Management

1. Create a daily list of tasks
2. Give each task a priority A, B, C
3. Ensure that you work on the ‘A’ tasks first
4. Handle each piece of paper on your desk only once
5. Ensure that you make the best use of your time
6. Don’t postpone anything – Do it now!

Now reread number “4”. Imagine if you actually handled each piece of paper on your desk ONLY ONCE!!!! This simple step can up-skill your organisation tremendously.

Surround yourself with tools that can support you. A checklist, a diary, a notice board, and a clear calendar are all very effective when used.

Discipline yourself with the above daily habits and you will decrease the amount of overwhelm you experience.  Jim Rohn said, “for every disciplined effort there is a multiple reward.” 

Anthony Davis