10. Optimise your business

Video with author's comments (English subtitles)

Wilfred Pareto, the 19th c. Italian economist, observed that only 20 per cent of people control 80 per cent of all Italian wealth, and thus he proposed his famous rule: 20 per cent of efforts causes 80 per cent of results, and the remaining 80 per cent of the efforts give only 20 per cent of results.


When we focus on 80 per cent of the income (which we get from 20 per cent of our clients) and 80 per cent of the expenditure (which is only 20 per cent of the expenses), it becomes the most effective way of time management.


Perhaps you know a lot of people, business clients, who rush to where it is cheaper. However, soon enough they understand that eating cheaper food, using cheaper services, living in a cheaper apartment, going to a cheaper hairdresser's, having a cheaper vacation, and going out with a smaller budget is not that easy. Ingenious people find ways of earning more; this is why they return to the same luxuries or even better ones.


Therefore, we will get a flow of returning visitors, as it is the natural order of things. It is unlikely that a person will get used to a situation that is worse than the previous one. We should get ready for returning clients and focus on improving relationships with them.


Right now the first phase is taking place: I am doing everything on my own so I need to find a way to do it as cheaply as possible. Yet, the second phase is drawing nearer: I will pay any sum, just let it be the way it was before.


You must always have a plan B (Otto van Bismarck, chancellor of 19th c. Germany was known for always having an alternative plan he was the founder of the plan B). It is always better to think beforehand of all the things that may happen in the worst-case scenario. But, it is also true that if you have a lot of backup plans, you are most probably preparing to lose, because even in the worst situation you are sure to have a solution. Sometimes it's better to bear in mind the historical term "to burn bridges" or even "to burn ships", which ultimately means that you only have one chance and if you seize that chance (as you can neither run nor retreat), you cannot possibly lose.


When you know that you cannot lose  you won't. Win or die! Optimise!