Pareto's Principle (aka the 80/20 Rule) suggests that 80% of your revenue is going to come from 20% of your activities. I just read "80/20 Sales and Marketing" by Perry Marshall - a book suggested a while back on the Podcast. In it, Perry suggests that you should identify those 20% of your activities that generate the greatest results and delegate the rest.
The idea is there's $10/hour work, $100/hour work, $1000/hour work, and $10,000/hour work. Most of us do a little of each throughout a given day. In fact, we should be delegating the $10/hour work (and even the $100/hour work) and focusing on those activities that generate $1000+/hour.
So, I'd like to hear from all of you...what are your $1000+/hour activities? What are the things you SHOULD be focusing more of your time on?
I am a commercial real estate investor who is just getting started doing some wholesaling (SFH & Multifamily). So, for me:
Meeting with Sellers
Meeting with Buyers
I'd love to hear what others consider the best use of their time. Go!
Hey Eric! As new wholesalers we spend the majority of our time driving for dollars and skip tracing. Soon I’ll be working on getting my CA license and my husband is going to get his Home Inspectors certification.
How do you like commercial real estate investing? I know we would eventually like to tap into that side. How has your transition been from that side to the SFH and MFH side?
I've always struggled with delegation but I'm getting better. Practice at my W2 job has helped me a ton. That was my main thing to put in place this year and I've basically decided that if one of my guys/gals could do something 80% as well as I could then I let them. It's also helped me to identify a few great future leaders too, one in particular has really stepped up. Now I don't even go to one weekly meeting, I just send him. A few others I still go with to meetings but let them take lead. I haven't let anyone crash and burn yet but they've floundered a few times...lol And most of them have thanked me for the opportunity and appreciated being exposed to more things.
For investing I need to learn to let go as well, I'm way too involved in everything. I'm hoping my day job will rub off on it and I'll make a list of the few things I want to do and let the rest go. My wife is taking on the books side so that will free me up. I'm looking forward to not worrying about that anymore!
@Breanna Taylor - thanks for you input. I was in the car business for 23 years, ultimately owning a minority share of multi-franchise dealership group. I sold my interest last year and decided to quit dabbling in real estate and get serious. The local market where I live is home to the University of California's newest campus (UC Merced). It opened over 10 years ago, but just recently got a huge infusion of funds from the State to build out the campus to house twice as many students. As such, everything real estate-wise is going crazy here. I decided to buy commercial property here because our downtown is also, now, seeing a rebirth. However, I also see the tremendous opportunity in SFR, so I am looking to capitalize on that.
That's the reason for the post...with so many irons in the fire, I need to start delegating and focusing on those handful of things that are really going to drive my business.
@Heath M. - Learning to delegate is one of the most valuable skills you can learn! Good for you for working on that. It took me years to let go of the reins at my old job. However, now that I know what a blessing it is, I want to make sure I get started on the right foot with my real estate business.
Anyone else? I'd love to hear your ideas on what the handful of things are that drive revenue in your business.
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