How to Work Smarter, Not Harder
Success in entrepreneurship doesn’t always come from doing more—it often comes from doing the right things. That’s where the Pareto Principle, also known as the 80/20 Rule, becomes a powerful ally for any business owner looking to grow efficiently.
This post explores how to apply the 80/20 rule in various areas of your business—from marketing and sales to time management and customer service—and how to shift from being busy to being truly productive.
What Is the Pareto Principle?
The Pareto Principle states that 80% of outcomes come from 20% of causes. It was first introduced by Italian economist Vilfredo Pareto, who observed that 80% of Italy’s land was owned by 20% of the population.
Since then, the concept has been applied broadly—especially in business and productivity—where it often appears in surprising ways:
- 80% of your revenue may come from 20% of your customers
- 80% of website traffic may come from 20% of your content
- 80% of customer complaints may be caused by 20% of issues
This rule isn’t a strict mathematical law, but a helpful guideline for identifying leverage points—the tasks, customers, or strategies that produce outsized returns.
Why the Pareto Principle Matters to Entrepreneurs
Entrepreneurs juggle a thousand tasks daily. With limited time and resources, focusing on what truly drives results can make the difference between growth and burnout.
Here’s what the Pareto Principle can help you do:
- Reduce time spent on unproductive tasks
- Prioritize high-impact activities
- Allocate resources more effectively
- Increase profitability
- Make better business decisions faster
Quote to Remember:
“Being busy is a form of laziness—lazy thinking and indiscriminate action.”
— Tim Ferriss
1. Applying the 80/20 Rule to Time Management
Where do you spend your time—and is it paying off?
As a founder, not every hour is equally valuable. Chances are, 20% of your daily actions are producing 80% of your key results.
How to Apply It:
- Track your time for a week and identify activities that lead directly to revenue, growth, or customer satisfaction.
- Eliminate, delegate, or automate the rest.
- Focus your most productive hours on that vital 20%.
Tools That Help:
RescueTime, Toggl, and Clockify make it easy to track and analyze your time use.
2. Use It to Focus Your Marketing Strategy
You may be spreading your marketing efforts too thin. SEO, email, TikTok, Facebook ads, blog posts—what’s actually working?
How to Apply It:
- Use tools like Google Analytics or Search Console to see which 20% of content brings in 80% of your traffic.
- Focus on the channels that convert best and prune the rest.
- Invest in repurposing top-performing content across multiple formats and testing what works best(LinkedIn posts, YouTube Shorts, etc.)
You might also like our article How to Drive Free Traffic to Your Website
3. Sales: Find and Nurture Your Most Profitable Customers
Most likely, a small percentage of your customers are responsible for most of your revenue.
How to Apply It:
- Identify top-spending customers and create loyalty or referral programs for them.
- Use CRM data to spot patterns among them—industry, size, needs—and target similar leads.
- Say “no” to customers who drain your time and resources but offer little return.
4. Product Development: Build What People Really Want
If 80% of users only use 20% of your features, focus on those and double down on what’s working.
How to Apply It:
- Use user analytics or feature surveys to track usage.
- Trim or simplify underused features.
- Roll out improvements or pricing tiers based on the most-used functionality.
Real-World Example:
Instagram began as a check-in app with many features. But after observing user behavior, the team stripped it down to just photo sharing and filters—and it took off.
5. Customer Support and Satisfaction
Most complaints tend to revolve around a few core issues.
How to Apply It:
- Track support tickets and look for recurring patterns.
- Solve the top 2-3 issues thoroughly—it will reduce your support load by a large margin.
- Create templates or knowledge-base articles for frequently asked questions.
Fewer complaints = higher customer retention = more revenue.
6. Team Management and Delegation
Stop trying to do everything.
As your business grows, you need to shift from being the worker to being the strategic decision-maker.
How to Apply It:
- List all your recurring tasks.
- Identify the top 20% you should handle personally—usually strategy, partnerships, and vision.
- Delegate or outsource the other 80%.
Related Post: How to Build and Lead a Remote Team
7. Financial Decisions: Cut Waste and Optimize Profits
80% of your spending might not be contributing much to growth.
How to Apply It:
- Use accounting tools to identify recurring expenses.
- Cancel unused software or services.
- Reinvest that money into top-performing ad campaigns or team training.
Pro Tip: Regular audits can save thousands over time.
Common Mistakes to Avoid with the 80/20 Rule
- Thinking it’s a hard rule
It’s a principle, not an exact formula. Sometimes the ratio is 70/30 or 90/10—it varies. - Focusing only on cutting
Yes, it helps reduce waste—but it’s really about doubling down on what works, not just trimming what doesn’t. - Ignoring emerging data
What worked yesterday may not work next quarter. Re-evaluate regularly.
Final Thoughts: How to Make the 80/20 Rule Work for You
Success isn’t about working harder—it’s about working smarter. When you understand that not all efforts produce equal results, you unlock the secret to exponential progress.
Quick Action Plan:
- Start small: Audit how you spend your time this week.
- Identify the 20% that drives your most valuable outcomes.
- Adjust your habits, processes, or team responsibilities accordingly.
Once you get into the habit of thinking in 80/20 terms, your business decisions become sharper, faster, and more impactful.
