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- Applying the 80/20 Principle For More Business Leverage
Applying the 80/20 Principle For More Business Leverage
Welcome to this newsletter about Leverage
It is Toussaint Gilbert
Here is a Lead Gen idea that will simplify your content strategy if you have one and give you a content strategy if you don’t have one.
This strategy is very effective and takes less than 15 minutes per day, hope you enjoy.
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Deep Dive
If you are going to start a business, you need leverage.
Without leverage, don’t own a business, you own a job.
Arguably a job much worse than one you could find normally since the workload is significantly more demanding.
The thing is, in business, there are a ridiculous amount of moving piece. There’s a lot of stuff you are responsible for.
The constraint on all these moving pieces and things you can be responsible for, is your time.
As humans, our time on earth is extremely limited.
So our goal shouldn’t be to be proud that we can work 10-12 hour days.
The goal should be is to spend our time building the mechanisms that bring us returns even when we aren’t working.
Utilizing leverage is how I do numbers like this:
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So how can we make our business so that it is leveraged.
Simplify
Ask yourself:
What’s the 80/20 in my business? (i’ll show you this in a bit)
What’s essential?
More important than all… Ask yourself, What is not essential that you can cut out to get better use of your time and output.
Look at everything you have going on and… Simplify.
Model
If you’re like me, you started your agency because you wanted money.
In the beginning, you have absolutely no problem working your ass off, staying up late, waking up early, doing WHATEVER it takes.
The result of this tho is your business gets built on the wrong structure.
You have to change the structure of your company. Your business should not be built around you - or reliant on any one person…
Not only will these allow you to scale smoothly, but yo also won’t be chained to the company.
Systems
Systems are the heart of your business.
These are your single greatest form of leverage.
So our ego, pride, brain, our human body loves when we are the smartest and greatest person in the room.
But to actually run a successful company.
You need to make yourself the least important person.
How Do We Accomplish This?
No matter how your business currently is structured, this is the 80/20 principle on roles you need to fill in your company.
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Your goal should be to make each department/component it’s own business.
If you can genuinely think about each component as its own business and build it in that way, you will create something very beautiful.
How do you know which things to outsource first?
The easiest way to do this is to calculate your hourly rate
The formula to do so is:
(Target Income Earnings) / Hours Per Week x Weeks Worked Per Year = Average Value of Your Time ($/Hour)
Now, for an example let’s say your hourly rate is $250 per hour. You would then calculate a chart that lists out tasks.
Here’s an example:
$10 per hour tasks:
Posting On Social Media
Fixing Websites / Landing Page
Errands
$100 Per Hour tasks:
Writing email/newsletters
Team meetings
Working and meeting with clients
$1000 Per Hour Tasks:
Strategizing a New Marketing Plan
Creating a new system for operations
Problem solving with your ops manager
Creating a new
$5000 Per Hour Tasks:
Creating an Irresistible Offer
Hiring Key Leadership Roles in the company
Definition of System:
A method of solving a task in a strategic, repeatable, and efficient way.
Forms of creating a system:
Checklist
SOP (Standard Operating Procedure)
Software application or tech tool
Video process
Automation
Template
Combination of multiple forms
Here are a few example of different systems:
Sales script
Handling payroll
Quarterly planning
New client onboarding
Writing effective emails
Setting up effective KPI reports
80/20 Principle, most important systems that will get you to a 7 figure company.
Hiring System: to recruit and hire A player talent
Numbers/Data systems: To be able to make quick, smart , data driven decisions and hold the company accountable.
Employee management and review systems: To optimize the team every month
Financial systems: to make sure your cashflow is solid.
Marketing systems: Consistent and predictable ways to drive leadflow and appt flow
Sales systems: Consistent and predictable ways to convert appts into customers
Onboarding & Fulfillment systems: To keep you from getting stuck in the business and help you not be terrified from scaling, all while consistently turning customers into your companies biggest fans.
How I Can Help You
If you’re ready to actually make this “agency thing” actually work…
Please allow me to do the following:
1. Let me productize your offer and help you build a full solution for your market
2. Turn it into something tangible that we can build and outline once and repeat for every single customer.
3. For a high ticket price ($5k-$15k+).
4. We’ll build out your full acquisition system so you can consistently hit the KPIs you need to sign clients effortlessly.
5. We’ll build your backend systems, infrastructure, and operations so you can wake up to stripe notifications before breakfast.
6. I only get paid when you make money (Allow me to become your partner).
If this sounds interesting -> Find a slot to speak with me here.
The Process:
I'm currently doing walkthrough & implementation calls where i’ll design your 120 day business roadmap and show you how to implement the system that personally scaled me to $106k/mo
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- If it makes sense for you and you want to partner together, let’s get started by building out the foundational infrastructure of your company.
Hope you enjoyed this one,
-Toussaint
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