2014 Business Management – Avoid Low Priority Clients
The premise of the Pareto Principal is that 80% of your success (or money) comes from 20% of your time (or clients). The Pareto Principal applies to everyone that provides a service to their clients.
The greatest challenge for all companies is, “How do I grow my business or take it to the next level?” Although we all have unlimited earning potential, we are all given exactly the same amount of time each day to achieve our potential. If you’re already working maximum hours, the only way to increase your productivity and income is to take less productive projects (or clients) off your plate and replace them with more productive opportunities (other clients).
This may be easier than you think. If you were to make a list of all your clients, then categorize them as;
- “A” Clients: Your best clients
- “B” Clients: Your good clients
- “C” Clients: Your fair clients
- “D” Clients: Your worst clients
You could easily recognize that the “D” Clients and maybe even the “C” Clients should be referred out to other professionals. The additional time could then be spent prospecting for more “A” and “B” Clients. By constantly applying this strategy, you will find that the quality of your clients and the income you earn will both dramatically improve.
If you don’t apply the above strategy, you will cost yourself hundreds of thousands of lost dollars. It’s important to recognize that your “C” and “D” clients in the above example are nothing more than a crutch that gives you a false sense of security. It’s time to throw your crutches away and enjoy the happiness and freedom that comes from realizing your potential.