RUNNING MY INTERNET BUSINESS BY NUMBERS
There are times to play by numbers, and times to play by instinct
When Vilfredo Pareto worked out his Principle in the 19th century, he didn’t know what he was starting.
He concluded that 80% of the land in Italy was owned by 20% of the people, and expanding that up, decided that
80% of consequences come from 20% of causes.
Over the years we have kicked this equation around in every phase of life.
80% of taxation is paid by 20% of the population.
80% of people problems in schools or workplaces are caused by 20% of pupils or workforce.
80% of business profits can be attributed to 20% of customers
It’s a good principle to work from. Find out your top 20% of customers and look after them.
Another set of numbers that I have found useful is 60–30–10.
When starting out, you give 100% to your business if you want to make it pay.
When it’s running at an acceptable level, new opportunities arise.
While you can’t expect to give maximum effort to any old new opportunity, you CAN just allocate SOME time towards it. Maybe 30% ?
So you now allocate your hands-on and research time 70% — 30% in favour of your main business.
As time moves on, you can adjust your time to 60–30–10, where you spend 60% of focus on main business, and 30% on your next project.
And the 10% is for that dream in the background.
The next step in the Multiple Income Stream project. The Big One.
It bubbles along in the shadows, waiting to be developed.
Don’t lose track of that ultimate dream.
And don’t always play your game according to numbers.
As Ankur Warikoo says in his book “DO EPIC SHIT”
There are times to play by an Excel spreadsheet and suppress your instincts.
And there are times to play by your instincts and ignore the Excel spreadsheet.
Knowing which option to take is the key to ultimate success.