Time is one of the scarcest resources for small business owners. There often aren’t enough hours in a day to balance the work that drives growth with the operational work that keeps a business running smoothly, especially when doing it alone. While multitasking is a necessary skill for any solopreneur, it can also lead to inefficiency and stagnation in business growth.
So, the question is: how can you create time and balance in your business? The key to unlocking greater efficiency and profitability lies in a well-known principle: the 80/20 rule. By applying this principle, business owners can shift their focus to high-value activities while strategically outsourcing or automating essential, yet lower-priority tasks to optimize long-term small business success.
The 80/20 Rule for Small Business Owners and Solopreneurs
The 80/20 rule, also known as the Pareto Principle, is a concept that states that roughly 80% of outcomes come from 20% of causes. In business, this principle is not about reducing workload but rather identifying and prioritizing high-impact tasks that yield maximum results. The 80/20 rule is widely used in various industries to prioritize tasks and resources effectively, but for those tapping into the Gig Economy, this rule aligns with outsourcing core and non-core tasks, but more on that later.
Examples of the 80/20 rule in business include:
- 80% of a company’s revenue comes from 20% of its customers.
- Focusing on the first 20% of effort in a project yields 80% of the results.
- 20% of marketing efforts drive 80% of engagement and sales.
By understanding these patterns, small business owners can make more strategic decisions about where to focus their time, energy, and resources – enabling them to dial in on the most impactful or profitable areas of their business and effectively create more time in their week.
Outsourcing Core vs. Non-Core Work
Leveraging the 80/20 principle also enables a business owner to separate non-core and core tasks and then focus the core team on the core 20% high-value work. The non-core work that makes up the 80% is still important to running the business, so outsourcing this kind of work to freelance pros skilled in back-office operations could be an excellent option.
To fully harness the power of the 80/20 rule, business owners must distinguish between core and non-core tasks:
- Core work is activities that directly drive customer value, enhance competitive advantage, and generate revenue, such as strategic planning, business development, client engagement, and product innovation.
- Non-core work is activities that support core work. These are typically essential yet non-strategic tasks that are not needed 40 hours per week and can be outsourced or automated. Some possibilities include administrative support, data processing, bookkeeping, and marketing. Non-core tasks are valuable to quality operations but often do not directly impact a customer’s perception of your business, beyond that it is well-run.
Delegating non-core tasks can free up significant time for business owners to focus on growth-driven initiatives. Business owners should also assess which non-core tasks require ongoing attention versus one-time projects. For example, bookkeeping may need continuous support, while website design may be a one-time project that can be outsourced and completed efficiently.
In addition to delegating work that distracts from the 20%, businesses gain other benefits from utilizing freelance workers:
- Specialization: Freelance pros can support the growth of your business, with specialty skills such as advanced CRM capabilities, project management, copywriting, graphic design or social media marketing.
- Flexibility: Freelance contractors can increase business agility, enabling you to quickly adapt to changes in the business environment, market trends, and economic circumstances.
- Scalability: Flexible freelancers help a business scale up and down as needed with no long-term commitments. They are also typically trained in the tasks and self-sufficient – saving you time and money.
Maximize Business Success with Quality, Qualified Freelance Support
Maximizing small business success starts with focusing on what truly matters. If you’re ready to apply the 80/20 rule and optimize your small business by outsourcing to a freelance professional, ResultsResourcing’s can help you reach your goals and objectives with a focus on optimizing your time and resources.
ResultsResourcing’s On-Demand Talent service connects you with experienced, high-caliber freelance professionals who can handle non-core work efficiently and cost-effectively. The ResultsResourcing process ensures that you find trusted, dependable support, fast. Whether you need assistance with marketing, administrative work, business operations, or specialized projects, ResultsResourcing simplifies the process of finding the right freelancers for your needs.
Ready to take the next step? Schedule a discovery call with our team to discuss your business needs!
