The 80/20 principle: what is it, and how can you use it for greater impact in your coaching/consulting business?

The 80/20 principle: what is it, and how can you use it for greater impact in your coaching/consulting business?

“The 80/20 principle applied to business has one key theme; to generate the most amount of money with the least expenditure of assets and effort.” ~Richard Koch

 If you're looking for IMPROVED PROFITABILITY in your coaching/consulting business...

The 80/20 rule will help you identify and prioritize the most critical tasks and activities, leading to more effective use of your time and resources.

 If you're looking for INCREASED PRODUCTIVITY in your coaching/consulting business...

By focusing on the 20% of products, customers or services that drive 80% of results, you can increase your profits and growth.

If you're looking for better RESULTS in your coaching/consulting business...

The 80/20 rule provides a framework for understanding the relative importance of different factors in your business, enabling you to make better, data-driven decisions.

Recorded 2/2/23.

HERE ARE ALL THE RESOURCES WE CURRENTLY OFFER (more to come, so join our community to receive updates)

'5-Day Massive Action Plan' Mini-Course Workshop:
https://upscaleyourbusiness.com/5-day-map

'90 Days to Clarity & Clients':
https://upscaleyourbusiness.com/90-days-to-clarity-clients

Request your FREE PERSONALIZED MARKETING ASSESSMENT:
http://www.upscaleyourbusiness.com/assets

Access our FREE RESOURCES:
http://www.upscaleyourbusiness.com/toolbox

Request our 'CONTENT ON PURPOSE' Template:
http://www.upscaleyourbusiness.com/cop-template

SUBSCRIBE to our YouTube Channel:
https://www.youtube.com/channel/UC31T1O9IDTzDrsPsj6sDN2A

JOIN OUR FACEBOOK GROUP, "Upscale Success Strategies for Coaches and Consultants":
https://www.facebook.com/groups/upscalesuccessstrategies/

LISTEN TO OUR PODCAST that will help you on your online business journey:
http://www.upscaleyourbusiness.com/podcast

REGISTER for our LIVE Implementation calls (these are real-life business coaching calls):
http://www.upscaleyourbusiness.com/implementation

OUR PROGRAM OFFERS FOR COACHES AND CONSULTANTS:
http://www.upscaleyourcoachingbusiness.com

-=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=-

CONNECT WITH US:
Jaimie Skultety:
https://www.linkedin.com/in/jaimieskultety

Mark Kanty:
https://www.linkedin.com/in/mark-kanty

-=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=--=-=-=-=-

OUR SITES:
Upscale Your Business:
http://www.upscaleyourbusiness.com

Upscale Your Coaching Business:

Join our free 5-day M.A.P. Workshop (Monetize, Accelerate, Prosper) and discover how to create meaningful progress and profits in your coaching business. Whether just starting or ready to scale, this workshop offers the momentum and clarity needed to succeed. Register here:
today's episode.
Go ahead. You don't

Mark Kanty (00:42):
I always I'm a member and we're recording now.
Welcome, Johnny. We're just alittle early, but not too early.
We're gonna hopefully we'll have

Jaimie Skultety (00:53):
Natalie, so let me let them in. Yeah,

Mark Kanty (00:56):
great. That's a party, party and welcome
everyone and and to those and weknow a lot of people can't
necessarily fit this in, butmaybe watching at a later date.
So that's great. So just want towelcome those who are present
and in the moment and those whoare in the future moment. So

(01:18):
exciting to have everyone heretoday. Yeah. What was I just
thinking or saying? Oh, yeah, Iwas gonna ask just a little
technical question here. But youknow, it's good for us all to
learn together. But but weshare, obviously share a
presentation and slides. And Ican't necessarily see the
viewers view of what they'reseeing so and Jamie, you be able

(01:42):
to probably answer this questionfor me. So when I share slides,
it removes everybody from yourscreen, like you've got a full
screen setup. So you can't seeany of the participants or can
you still

Jaimie Skultety (01:51):
see? You see, like, you know, like one of
those like, either up top or onthe side?

Mark Kanty (01:56):
Yeah, okay, good.
Yeah, because I've been inmeetings with both that and most
of them usually on Zoom, I thinksome people have it set up where
they can block them completely.
But most of the time I see alongthe top, and then you can
scroll, you know, you get Idon't know four or five,
depending on how big your screenis, you get a few longer time.
Let's dive in. We got a lot tocover here. Today, I'm going to

(02:17):
go fast and furious, as always.
So it's a pleasure to haveeverybody here. And please,
please, please, please come playwith us be a participant, not
just a spectator. And with thatin mind, give me a one or a
thumbs up or a yay, or a hey, orwhatever you want in the chat

(02:39):
just to let me know that you'rehearing us and Jamie and I and
you can see us and we'll get youused to being interactive here.
So go ahead and just find thechat should be at the bottom of
the bar there, click on thatlittle window will open. There
we go. I've got a thumbs up. Ihear you loud and clear. This is
great. Awesome, thank you. AndI'm going to go ahead and share

(03:02):
slides. And let me do that. Andthen you can give me some more
feedback just to confirm thatyou can see the slides that I'm
putting up here. So again, ifyou can get one or thumbs up or
a happy face, or whatever you'reso inclined to do. And let me
know if you can see the slides.
All right, great. Okay, we'vegot some feedback coming in.

(03:24):
Awesome. As always, the chat isthere for you to throw in, you
know, ideas, thoughts,contribute to the topic, ask
questions. And we'll bemonitoring those and you know, I
will wait an appropriate timeprobably, to address them. So
usually addressing things in inlumps, so that we don't kind of

(03:46):
break the flow of what we'retalking about, but put them in
there because it's best to getthem out of your brain as they
pop up, then rather than waitingtill the end, because you may
forget them. So that's kind ofhow the brain works. And that's
how our chat works. So and I'mgonna ask you some questions, I
want you to continue to playwith me in the sandbox here. So
here's a quote for you. The 8020principle applied to business

(04:09):
has one key theme to generatethe most amount of money with
the least expenditure of assetsand effort. So this is a
powerful, powerful concept. Andit's by Richard Koch. And if
you're not familiar with thebook, there's a couple of them
out there. But he wrote a bookon the 8020 as it applies to

(04:29):
business and then I think he dida follow up version as that
applies to life. But highlyrecommended read would really
encourage you to do that. Andyou'll see why in a minute as we
get further into this particulartopic. So let's talk about this
and what we're going to covertoday. So we're going to cover
the 8020 So we're gonna talkabout it as a concept and how it

(04:53):
applies really to all areas ofyour life. The reality is
there's an imbalance betweencauses Results input an output
effort and reward. So we'regonna talk about that, we're
going to talk about how 20% ofyour effort is actually
responsible for 80% of yourresults. So that's really
important. A lot of people knowthat kind of give that lip

(05:15):
service, it's hanging out here.
But what I want to do is showyou how you can take that and
turn it on its head. So 80% ofwhat you achieve will come from
just 20% of your time. So isthat an amazing thing? Think
about it, if you could figurethis out. And that's why I'm
going to give you the tools todo that, then you could
literally cut out 80% of thetime that you're currently

(05:39):
working and focus just on that.
20% Would that be a bizarreconcept? Isn't that a bizarre
concept? I don't know what themath is. But it's kind of like,
I don't know, I'm going toballpark here. It'd be like, if
you're working an eight hourday, you'd be working just two
hours of those days, where isapproximately where you're being
productive, is that 20%, by theway is to innovate 20%? No, it

(06:03):
would be 25%. So less than two.
So be like an hour and 33minutes, maybe if I got my math,
right. So you'd work in only anhour and 33 minutes of your day
is actually producing 80% ofyour output of your results.
That's incredible, isn't it. Andyou know, I digress, or I get
off topic, because we're gonnago into that, as always stick

(06:23):
around, we're going to bait youand tempt you and give you a
bribe, to listen all the waythrough. So you get this
information. It's important,because any idea or any concept
that you're considering, needsto be put into context. And what
do I mean by that? Well, we'rehere to talk about business

(06:45):
building a coaching business. Sowhen we talk about contracts, we
talked about where does this fitinto the strategy, the bigger
picture of what I'm trying toachieve here. So we want to, we
always want to hang until theend so that we can then find a
way and hopefully, Jamie and Ihelp you put that into context
to know how that's going towork. And I'm usually pretty

(07:05):
specific with this with givingyou some action steps to take.
So stick around. And the otherthe reason to stick around to if
nothing else, is just to findout what the gift is at the end
that we're gonna give you. Soplease, please be with us. So
let me ask you this question.
And again, I'll I'll ask you toparticipate with me. Do you

(07:26):
often feel like you're puttingin far more effort than the
results? Are, you're gettingthat the results demonstrate
that you're getting type? Yes,in the chat. If that's you, you
often feel like you're, you'rejust putting it in, you're
pounding and you're pounding andyou go, Oh, I'm just not seeing
anything come out the other end,or I'm seeing a little bit come

(07:48):
out the other end? Yeah, thankyou. Yep. Yes, I appreciate you
participating. So we're gettingI'm I'm finally got my screens
organized, where I can actuallysee least some of the chat, I
can't see it all, because I'vegot too many things going on
here. But I can see some Yupsand some yeses and some happy
faces here. So what is thisthing called the 8020 principle,

(08:08):
and most people are aware of itnow. But I want to put this in a
new light. And I also want tokind of move this to the top of
your consciousness, so that youbecome aware of it in your life,
it all begins with awareness.
Mani, you know about this,particularly because you and I
have chatted about the firststep of any thing, any change,
any behavior that we want toadopt, or anything we want to

(08:31):
achieve is awareness is thisideal. One of my mentors used to
he'd say call, call it noticingfor. So just noticing what's
going on in your life then putsyour brain in an active mode and
excitatory state we call that,where now you're starting to be
aware of what's going on so andmore and more that'll come in.

(08:52):
And then that's how you start towork with things. So why is this
important? Because it'scounterintuitive, you know,
we're kind of trained to expectthat causes will basically be
roughly the same as what we putin. So input 50 get 50 back out
again. And this is a problembecause it's just not reality.

(09:14):
You know, this is a fallacy, ifyou will. And it's one of the
most inaccurate and harmful waysto see the world. So we really
need to be aware of this. Soit's a benchmark for this
imbalance, this thiscatchphrase. And it's important
to kind of think about it thisway. We call it the 8020 rule or

(09:35):
principle, or the Paretoprinciple, but I'll tell you why
in a minute why it's calledthat. But it's not always that
way. The the idea that I want toget across here is that there's
an imbalance and sometimes it's8020. Sometimes it's 95, five,
sometimes it's 99 one, so it canbe that big a So there's a real,

(09:58):
the important part here is it'sa very large to a very small. So
we want to be aware of that anddon't get hung up on on the
number itself.
The typical pattern will show ifyou average everything out that
80% of output actually resultsfrom 20% of input. So therefore,

(10:21):
80% of consequences flow from20% of causes, or that 80% of
results come from 20% of youreffort. So the, you know, the
8020 principle, it asserts thatwhen two sets of data relating
to causes or results can beanalyzed, the most likely result
is that there will be a patternof imbalance. And quite often,

(10:44):
we're quite surprised at that.
And I'm going to share somestuff with that you may have
heard of in a minute, but youmay even find some surprises in
some of the data that I'm goingto share with you. But the end,
let me see if I got one morepoint here, which I think I do.
So the idea that a minority ofcauses and inputs and effort
actually lead to the majority ofwhat you're going to get out of

(11:05):
you and your business. And thisis a key thing can obtain much
better results, which with muchless effort, expense, and
investment, if you figure thisout, and if you start to become
consciously aware of it, and itnever ends, by the way, so
you're always looking for it. Solet me my slides aren't quite

(11:26):
sinking here the way I want themto. But that's okay, you see a
couple of pictures on here. I'lljust jump ahead. So what's the
background of this? Well, it wasfirst discovered by this Italian
economist called Vilfredo.
Pareto in 1897. And that's whywe sometimes refer to it or
people, you'll hear it referredto as The Pareto principle. But

(11:49):
what he noticed was the 80% ofthe wealth and income in Italy,
and he looked around the worldto was held by 20% of the
population. And then he startedto look around at different
countries. And he found thatthis was true. So he was doing
this and looking at thesenumbers, then he just kind of
fell off the face of the earth,you didn't really hear any more

(12:10):
from them. And then along comesthis new guy. And it resurfaced
in 1951. Think about that at 97.
And it just kind of got lost gotforgotten. And then in 1951,
this quality guru named Joseph,Jura Duran, came up with this
idea, he called it the rule ofthe vital few. And he and what
he was talking about was the8020 rule. Now his purpose, he

(12:32):
was looking at quality. So hewas looking at how can problems
be eliminated quickly andcheaply. By focusing on the
vital few problems, you'll alsohear me sometimes talk about
constraint theory. That's thenext evolution of this. If you
want to get into somefascinating stuff, start looking
at constraints, and the theoryof constraints. Because that's

(12:53):
another thing that follows thiswhole principle, the idea that
we're always looking at thewrong thing. We think the
bottleneck is here, but in fact,it's over here. And when we can
release that bottleneck, all ofa sudden, everything just starts
to work. So it's this vital fewthat we want to focus on the
vital few problems. And then hetalked about and coined this

(13:15):
phrase, the trivial many, andyou may have heard this before
to this phrasing is that thetrivial many, so? It's so what
do we do, we spend all of ourtime focusing on the trivial
many, and we give lip service orwe don't even pay attention to
the vital few. And that's aproblem. And here's why this is
important, because it'scounterintuitive. We don't

(13:36):
realize this is going on,because we've kind of been
trained that to believe thateverything is 5050. And I kind
of talked about this before, youknow, it's a fallacy. And it
really is harmful to the way wethink. And what it causes is it
causes us to get caught in thiswhole concept of busy work, you
know, where we're just puttingout we're putting it we're

(13:59):
putting out and we feel like oh,I spent eight hours or nine
hours, 10 hours in front of thethe screen, I must have
accomplished something, surely,I was productive. And that's not
reality at all. The 8020principle asserts that I went
through this before, so I'm kindof duplicating my thinking here.
But this is why it's soimportant. And I want to hit
home on this again, and I'mrepeating myself, you and your

(14:19):
business can obtain much betterresults with much less effort,
expense for investment. Jamie, Iwent through this with and I
know I've got a blank screenbecause I'm gonna go a little
off topic here from it. But aswe refined and looked at our
process, you know, when we werelooking at what is now the 90
day process, it was more like ayear. And as we looked at it

(14:40):
more and more and we started toand we continually do this, we
continue to look at what are thevital few things. What's the
8020 rule? How does it apply tothis and we're still doing that
to this day. We will continue tochange things and we may even
remove big attempt to put inmore chunks that are even more

(15:01):
focused on the 8020. Becausethat's our our goal, if you
will, is to get as much as wecan out of this for you. That's
our goal. That's our job, if youwill. So, why does this matter?
Well, number one, increasedproductivity, the 8020 rule
helps you identify andprioritize the most important

(15:23):
tasks and activities leading tomore effective use of your time,
and resources. And before Ifinished today, I'm going to
give you how to do that, I'mgoing to give you the how to
have that. So this isn't justsomething that you can think
about, it's something I'm goingto give you an assignment to do.
And I'll tell you howspecifically, improve
profitability by focusing on the20% of the products, or the

(15:46):
customers or the services thatbusinesses have this is very
general that drive 80% of theresults, you can increase your
profits and growth. So thisrelates to Jamie and I talk
about this all the time. Andyou'll hear us talk about this
is stop chasing, here's whathappens in our business is, and
this is a direct application ofthe 8020 rule is we tend to

(16:09):
spend 80% of our time, energyeffort and money chasing people
who really aren't interested, orwho aren't ready for the
solution that we offer. And weforget about the 10 or 20% that
do. So stop chasing, there's agreat book, and we recommend

(16:30):
that book. What's it calledagain, Jamie, it's called Don't
chase

Jaimie Skultety (16:36):
experts never chase experts never

Mark Kanty (16:38):
chase. What's an expert? An expert is somebody
who understands the 8020 ruleand really applies it. So
instead, focus your focus yourenergy, and what do we do, like
we're programmed to this tothink about? We also talked,
there's a little model that Iuse, and Jamie's familiar shall
laugh at this. But it's learningto love the nose, learning to

(16:58):
love the nose. So like, Can wedo the numbers like okay, if I
have to, if I have 10 people,I'm speaking to 10 people and
one person is going to say yes,that means that there's going to
be nine noes in that equation.
So where's the volume in that?
And if I put $1 to that, iflet's say that each of those
people is worth let's say, $10.
So that's $100 in that 10. Sowhere's the real money in the

(17:24):
yeses are in the nose? Play withme here. Where's the real money?
Go ahead, play with me byputting a number in the chat.
where's the where's the realmoney? Think about this. I'm
trying to get your brains workin here. We got 10 people, one
says yes. Nine say no, they'reall worth $10. Where's the real

(17:45):
money? No, it's in the nose.
Those notes are worth $90. Tome. The yes is worth 10. Johnny
probably heard this examplebefore, because he's our sales
resident sales guru. But yousee, the idea is that I can only

(18:06):
get to that, yes. When I gothrough the nose. So if I apply
the 8020 rule to this and thinkabout this, that's where we want
to put our energy, right? Wewant to go through that. And
then but what does it our braindo? It goes, Oh, I had a
terrible day. Well, whathappened? Honey went well, well,
nine people said no. Oh, andwhat? Why is that terrible? Oh,

(18:27):
you wouldn't believe they beatup on me. They told me I was
charging too much. They toldthey were saying how do you
prove this? How do you do? Howdo you get off saying that?
You've got a solution? Right?
Oh, this they just beat me upall day long. And then what but
how do you you said that? Nine?
But you talk to 10 people? Whatabout the 10th? Person? Oh,
yeah. They said yes. And theysigned up. We do that, don't we?

(18:52):
Or we put something out on weput a post out on on Facebook or
LinkedIn or something. And weget all of this feedback coming
in. And then down somewhere inthe mix comes this troll that
comes along and says you're anidiot. None of this applies. Go
get a real job. What do we spendthe rest of our time doing
ruminating over that onecomment? When 90% 80 90% of the

(19:16):
comments were great, good, I getthe idea of where we go. So
that's why it's important thatwe become aware of this, because
we have to fight it. We have tobecome aware in order to fight
and resist that tendency tofocus on the wrong side of the
equation. So it creates betterdecision making the 8020 rule
provides a framework forunderstanding the relative

(19:39):
importance of different factorsin your business, enabling you
to make better data drivendecisions. So in short, you know
the 8020 rule and applying itcan help you make better
decisions to streamline youroperations to achieve your goals
more efficiently, quicker,faster, more effectively. This
is what the 8020 rule is allabout. So let me ask you this.

(20:03):
Have you noticed that usuallyyou don't get back what you put
in that sometimes you get verymuch less. And sometimes you get
very much more of you noticethat you noticed that sometimes
you have a day where you justkind of do one thing. And it's
like holy cow, it just explodes.
And you just feel so gratifiedby that one thing, and it only

(20:28):
took up a little bit of time,and you go, that was an amazing
day. And then another day,you're slugging it out, and you
just don't seem to see anyresults. This is the 8020 rule
happening. It's the 8020 ruleplaying with you, and toying
with you. Sorry,

Jaimie Skultety (20:45):
if I may jump in, it's kind of like, you know,
having your calendar filled upwith people and consults and all
of that. And then you find thatyou're speaking to people who
are just, you know, they're justnot the fit. And so then your
whole day is just taken up withwith that if you just put the
people on your calendar, whowere really interested and
really are ready.

Mark Kanty (21:04):
Yeah. And this is why we hit home so much on the
avatar or your audience, becausethe better you can get at
finding and speaking to theright people, the less you're
going to be drained, the less ofyour energy is going to be put
into speaking to the wrongpeople. There are lots of people
out there that are starving andhungry for the solutions that

(21:26):
you have to offer. Don't getsucked into the idea that, Oh,
it's really competitive, ornobody wants what I have to
offer or it's saturated, it'sall bunk. It's bull, it's not
reality. Okay, let's run throughthis real quick. Inputs are not
equal to outputs, these arerealities, these, this is the
way the world works right now.
20% of products produce about80% of sales, you go into

(21:50):
retail, check the shops, they'lltell you this, this is what
happens clothing storeseverywhere, groceries, food, 20%
of customers equal 80% of therevenue 20% of your clothes will
be worn 80% of the time, howmany people can identify with
that? You looked at your closet,and you realize that it's those
one, I'm I'm like this, I don'tfight it, I don't care, it

(22:12):
actually makes my life easier.
But you think about it, thinkabout your closet, or your
shoes, or you have thosefavorites, your shoes, your
belts, your hats, your coats,you will wear them, you'll where
80% of them 20 or 20% of them80% of the time, or more. How
does this apply to effort andresults 80% of the time 80% of

(22:36):
what you achieve comes from 20%of your time 80% of the money
you make comes from 20% of youractivities, a lot of data here
I'm giving you training. I'mtrying to give you some some
fuel here. Here's what'sinteresting is we look at causes
and consequences in the world.
20% of criminals represent 80%of the valuable crime 20% of

(22:58):
drivers cause 80% of allaccidents. 20% of people who get
married accounted for 80% of alldivorces. Did you know that 20%
of your carpets will get 80% ofthe Where have you ever seen?
Have you ever been in an officeand you and I don't know if
you've ever seen this? Buthere's an example of a brilliant
business example. But incommercial applications, does

(23:21):
anybody know how they do cars?
Most people do carpets now andin commercial applications, like
in office buildings and stuff.
So anybody ever seen that? No?
Really? Nobody? Oh, I'msurprised. They do it in
squares. So when you buycommercial carpet, you they
don't come in with rolls, theycome in with a stack of squares.

(23:45):
And why did they do that?
Because somebody figured out wecan save a lot of money. If we
only replace the 20% that getsthe 80% of the where tremendous
amount of money saved. Here'sanother one. I don't know if you
were aware of this. Years andyears and years ago, my mother
claims to be the one who came upwith this idea, by the way, is
they used to paint the linesdown the middle of the road. And

(24:06):
they repaint the lines, repaintthe lines, and then they repave
the road and they get potholesand they don't have to deal with
all this repair. Now my motherclaims that she sent in a letter
to the editor or something inthe newspaper backing this would
have been in the 60s orsomething. And this was her
idea. She said why don't youmove the line. Instead of always

(24:28):
repaving the same spots andfixing the same potholes. But if
you'll notice this go down theroad and notice how the line on
the road is off. If you look atthe one shoulder will be bigger
than the other. Why did they dothat? Because they realize they
figured out my mom figured itout and told them how to do
this. The engineers figured outthat if we move the line, then

(24:49):
we can move the wear pattern andwe can actually get more mileage
out of that asphalt. Isn't thatfascinating? So these are some
practical applications of howthis is working in the world,
your carpets, the road, there'sall kinds of other things that
are happening to your dishes.

(25:11):
Everything. This applies to 20%of diseases account for 80% of
all health care costs andresources. While isn't it? It's
just an everything. So let'spause for a minute, I give you a
few business examples. But Iwant you to think about you for
a moment. And tell me what areyour takeaways at this point in

(25:32):
time, what what's percolatingfor you around the 8020 rule?
And go ahead and give me thingsthat are coming up for you. In
the chat. Just any ideas at all?
Little brainstorm, there's noright, there's no wrong, there's
no good, there's no bad.

Jaimie Skultety (25:46):
Larissa states, my numbers are even lower than
the 20%.

Mark Kanty (25:52):
Yeah, and you'll find that you'll find there's
this this flux, I didn't put itin here, but there's an example
I think it was in turn, Iremember what year it was, it
was like around 2006 2007. Ididn't bother putting anything
here. But it was the movieindustry. So you know that 20%
of all movies make up 80% of allbox office profits and receipts

(26:16):
and revenue. And in 2006, it wasactually 98.6%. So what happened
was 1.4%, or 1.3% of the moviesrepresented all over the
represented 80% Of all therevenue that was brought in just
just less than 2%. And thatwild. So the idea of the idea

(26:40):
here is not an exact number, butthere's a huge imbalance. So we
need to be aware of that. Sowhat ideas are coming up for you
what takeaways are coming up foryou that you can apply? Think
about this? How can you use thisinformation to your advantage?

Unknown (26:53):
Well, I guess clarity.
Like for coaches, it's importantto have clarity about the
clients, just as you mentionedearlier, to focus on results or
just to kind of, I feel I needto analyze where the most
lucrative clients are comingfrom and focus on them. So yes.

Mark Kanty (27:13):
Beautiful, Larissa, exactly this idea of really
knowing you can never knowenough about your audience or
your avatar. So really critical.
Larissa, that's, that's a verygood point, one of the first
places to start, you know, inyour business is how well do I
really know them? Now, I'll giveyou an add on to that concept is
how can we go about doing that?

(27:37):
And how can we apply the 8020rule in terms of our
conversations? And I'll give yousome hints here. When we think
about conversations,conversations are give and take
back and forth. Conversationscomprise statements, ideas, and
questions. So how could we usethe 8020 rule to be more

(28:00):
effective? Questions, spend 80%of your time asking questions. I
am an exerciser. I always havebeen do due to various personal

(28:21):
reasons from my youth and a badaccident that I was in that I
have to exercise every day, orI'd probably be in a wheelchair.
When I go to the gym, a lot ofguys come in and women and they
immediately jump on weights orwhatever and start doing things
and then they go out. And I feeltheir pain. I spend about 80% of

(28:44):
my time on the floor stretchingand doing floor work. It's a
different way of looking atexercise. Why? Because that is
one of the most effective thingsthat I know works in terms of
exercise that if you change yourexercise routine and spend 20%
of your time on resistancetraining, and 80% on stretching

(29:06):
and core function, you'll getbetter results. Just an example.
Okay, any other ideas? What elseis coming up for you in terms of
the 8020 rule?

Jaimie Skultety (29:15):
Feel free to open up your mic. If you have a
comment

Mark Kanty (29:18):
you want if you want to jump in that or speak in the
chat, whatever works for you.
How about time management? Let'slet's come back to time
management. How about how aboutgiving yourself this rule saying
I'm going to make sure that Ispend less than 20% of my time
surfing social media, or lookingthings up or playing with my

(29:40):
website or whatever? How about Ispend 80% of my time and if
you're new to business andhere's the rule, we're going to
start to put this in the programuntil you get to $1,000,000.80
percent of your businessactivity needs to be speaking
with prospects and clientsPeople move watch much too

(30:02):
quickly, they flip that around,they spend 20% of their time
talking to prospects Where'swhere, what's the best way to
learn about your audience andyour avatar, speaking with
people, not reading about them,not going to the next webinar or
workshop or downloading the nextbook and reading it, but
actually speaking to people takeall the pressure off of yourself

(30:24):
and them and spend 80% of yourtime speaking to people and 80%
of that time asking questions,finding out where they're at,
what are their struggles? Whatare they trying to accomplish?
And then you know what, when youstart to do that, you'll get
very good at figuring out who totalk to. And when you're in
those conversations, you'll alsoget very good at figuring out

(30:46):
whether they need what you haveto offer or not. And you'll get
very excited and so will theythey'll get very excited to say,
I can't believe I found you.
This is an amazing conversation,do you mean you can actually
help me solve this problem? Andyou can go yes. And they say,
Where do I sign up? Versus allthose conversations where there
isn't a fit, and we're trying toforce it? We're trying to we're

(31:09):
trying to force this square pegpeg into the round hole. I
digress. Thank you. Thank youfor participating. I appreciate
it. So here's the reality, youcan't escape this. In every
market, there will be somebusinesses that are much better
at satisfying customer needs.
need to be aware of that, isthat going to be you? I hope so.

(31:31):
In every market, there will besome businesses that are better
at minimizing costs relative torevenue. Don't worry about that
until you get your first milliondollars in revenue. You can
there's there's a very good wayof looking at this. And Jamie
has heard me use this examplefor what's what's the best way

(31:52):
to maximize savings in business?
How can you? How can you get themaximum savings in business?
Anybody want to guess? No.
Nobody's gonna guess Jamie canguess for me, then?

Jaimie Skultety (32:17):
Well, I was guessing invest, invest in the
right things.

Mark Kanty (32:21):
Now, that's the opposite. If you think about it,
how can I how can I get themaximum amount of savings? How
can I save the maximum amount ofmoney in my business? It's kind
of obvious.

Jaimie Skultety (32:33):
Don't don't spend any. Yeah, don't

Mark Kanty (32:35):
spend any quit?
Yeah. Yeah. So a business that'sin trouble. That's not making
enough money. And this goes backto my days. And you know, pre
internet days is the businessthat's not making any revenue
that's not profitable. Andspending all their time figuring
out how to get caught, you can'tsave your way to success. So
they're spending 80% of theirtime, money and effort on saving

(32:56):
money. When the real problem ison the other side of the
business, it's generatingrevenue 80% of your time
generating revenue. Don't worryabout saving it until you got
enough that you need to worryabout saving. So where was it?
In every market, there will besome businesses that generate
higher profits than others. Andovertime 80% of the market will

(33:18):
be supplied by 20% or less ofthe businesses that are
appealing to that market. Thecar industry in the automotive
industry can't run with thenumber again, I don't know the
stats on your. But when theautomotive industry start I
think there was something like900 manufacturers in the United
States, making cars. Not hard tobelieve it's amazing. Computers.

(33:40):
I don't know those of you whoI'm dating myself, but I
remember you know, when the whenthe first microcomputers came
out, and the lab at theUniversity that I went to had
this micro computer lab and wehad we had to have had 1215
Different brands there.
Everybody was into it. Sony hada computer. You know all the all

(34:02):
the Japanese companies hadcomputers and a whole bunch of
others. There were tons ofAmerican companies. Osborne was
a big one that was going to be Iremember in the day, Osborne was
going to be the computer thateverybody had was burned went
bankrupt, like three yearslater, Gateway. Yeah, Gateway
was a was one that made a run onit. And then of course, it all
settled in what happened IBMdominated the market and then

(34:25):
blew it. Interestingly enough,yeah. So overtime 80% will be
supplied by 20% of or less sothe business's existing and new
businesses will seek to innovateand obtain a larger share of
smaller but defensible part ofthe market. Why is this
important? It's importantbecause you need to realize that

(34:46):
you're in a space and you havethis amazing opportunity. It's
called the Internet and it'scalled the world it means that
when when local when it used toall be about local business, you
had a finite number of clientsthat you could actually work
with. But now we have thisopportunity to segment and chip
out pieces of the market and todominate them. So think about

(35:08):
when when you used to go out fora cup of coffee, you'd go to a
diner, or you'd go to arestaurant. Nobody ever thought
that there could be a coffeeshop that did nothing but serve
coffee. I love to think aboutwhen I remember when kernels
came out, I think how whowhoever thought that, you know,
if you go back now, again, I'mdating myself go back 40 or 50

(35:31):
years ago and in say tosomebody, you know, one day
there will be stores that sellnothing but popcorn. You'd think
they were insane. But this iswhat happens is markets divide
and then they subdivide, andthey niche down, they become
smaller. Anyhow, again, Idigress. But the important part
here is realize that there's theplayers who want to really be

(35:55):
successful in any business arealways innovating to get a
larger share of a smaller part.
And so they're looking for thatright little piece, add 20 gain,
they're looking for that, thatpiece of the marketplace where
they can dominate 80% of theprofits from the entire market
will reside and 20% of theniches 20% of businesses 20% of
customers or clients 20% ofproducts. Now I want to talk a

(36:19):
little bit just for a moment, Iwant to pause here for a minute
about the 80% of the entiremarket will reside in 20% of the
niches. Now this goes back preinternet days, and it applies to
the internet as well. And thoseof you who are in our program
are going to know this but namea few of those. What are the
biggies? Can you name a few ofthose niches? Think about what

(36:47):
what people are always strivingfor. So what's one of the
biggest pains that people have?
Now, what people always talkingabout what are people always
complaining? Why are you here onthis call?

Jaimie Skultety (37:04):
Finances money, and money.

Mark Kanty (37:08):
How to make money, how to save money? How to get a
job, all of those things fallinto the money market? Yes.
Johnny got it. Health and Beautyis another one. So anything to
do with pain, suffering, health,wellness, weight loss, fitness.
Think about how long theseindustries have been around.

(37:29):
These are the big players. AndI'll ask for a third one. We
won't go any further. But butthere's kind of three biggies.
There's a third one.

Unknown (37:41):
Maybe like relationships? Yes, I was just
gonna say we

Mark Kanty (37:45):
got 100% Yeah. So relationships. Yes. So love,
companionship, partnership,marriage, divorce, dating,
those, those are the threebiggest niches that never seem
to go away. Why? Because theproblems never, ever go away.
Everybody's always looking for asolution in those niches. So, so

(38:08):
think about those, and thenthink about subsets of that. So
I'll give you a direct exampleof that. One of our clients, as
a doctor, yet did some trainingand had a particular passion and
interest in marriage counseling.
So he took the relationshipniche. And then he and she was a

(38:30):
partnership, a couple and took asegment out of that and said,
let's work on relationships withI don't think it was
specifically surgeons, but withmedical with with medical
doctors. Great little sub nicheto drill down into, and a very
clever one, because we know thatstatistically, those professions

(38:54):
are high stress and do tend tohave a higher incidence of
divorce. And what a great

Jaimie Skultety (39:00):
medical doctor, he was a medical doctor too, so
that he was able to speak theirlanguage.

Mark Kanty (39:05):
So he was able to speak their language. So he knew
he went after what he knew. Andhe knew that there were a lot of
people that he worked withthrough his life that were in a
lot of pain. They were on theirsecond, third fourth divorces.
And if he could help heal thoserelationships, then he found
himself a segment of the marketto work on. So there's an
example of that subset. Anotherexample in maybe in the health

(39:30):
care niche would be rather thanjust weight loss, maybe I'll
give you I'll give you a directexample. My wife and I opened up
a fitness center in 1992. Andthis was kind of before it was
popular. And one of the thingsthat we did was we opened up a
women's only fitness center. Sowe section the market. Everybody

(39:54):
else had health clubs and gymsand metaphoric that of the 80s
they in the 80s they were thebig dating pool. For him, that's
where they were the nightclubsof the 80s. In the 90s, it
shifted and we opened up thisniche, which was women only. But
then not only that, but wetargeted pre and post natal
women. So instead of going afterthe dating game, the 1820 25

(40:19):
year olds that were all abouthard bodies and attracting a
mate, we actually went after thesegment of the market that were
worried about how their bodieswere going to look after they
gave birth. So prenatal classes,classes with baby postnatal
classes, how can I get my bodyback? How can I turn instead of

(40:41):
worrying about attracting amate? How can I adopt functional
fitness? So in other words, howcan I carry a baby and make
dinner and do these things allat the same time? Functional
Fitness. And that was our how wetook that niche, and sub divided
it ended up with three differentbusinesses out of that. So

(41:05):
there's an example. So I couldgo on and on. But I want you to
think about these things.
Because this is what I'm tryingto do is get you're thinking
about your own avatar, your ownaudience, your own product, your
own solution. The mostprofitable businesses tend to
have the highest average profitper employee. This is as you
grow your business. But theprofit generated per employee,
and I put in here or outsourcertends to be very unequal. About

(41:27):
80% of profits are usuallygenerated by 20% of the
employees, or outsourcers. Andservices are an important word
because as you grow your team inthe space that we're in, chances
are you will work with virtualassistants and outsourcers a lot
more common than actuallyneeding to or having to employ

(41:47):
hire an employee. So wonderfulway of working. By the way, and
a great way to build yourbusiness, we can talk to you
more about that as your businessgrows. The principles of unequal
effort and return thereforeoperate at all levels of
business. broad markets, nichesproducts, customers, employees,
outsourcers it affectseverything that we do everything
that applies to our business. SoI've opened up your pathway

(42:12):
here. And now I want to kind ofbring you back to the micro
what's in it for me, how doesthis apply to me. And this is
going to take us to, as Ipromised, your gift, and my
challenge to you. So what wewant you to do is in the chat,
put in if you want thisworkbook, we want you to put at

(42:33):
20 in the comment section, ifyou're one of our future dated
people who we're talking to inthe future, then put in the
comments section, find a placearound here to communicate with
us if you need to send us anemail or, or give us a PM,
somewhere and we will send youthis PDF workbook, which will

(42:54):
educate you help you give yousome ideas. So there's some
questions here. And I am here tohelp you layer things. And I'm
not going to I'm not going togive you too much of a peek
behind the veil, I'm not goingto show you the pages. And it's
also going to give you some somework that you can do to monitor
so that you can figure out whereyou're at 20 is powerful little
workbook. And those of you whoare working with us full time in

(43:19):
our program, you know what's inthere. So I encourage you, if
you haven't visited by the way,I still do it. And again, I
failed to I don't want to, Iwant to, I don't even know where
I got it. Now here it is in mysecond drawer. So I still do
this stuff. So so when I findmyself concerned about my

(43:40):
productivity, that's all I'mgoing to show you. I use that
workbook. So this is somethingthat is an exercise that you can
pull out and do you know,particularly if you feel like
you know what, I think I'mwasting a lot of time, I think
I'm spinning my tires, I thinkI'm just going through the
motions here, and you'll knowit, you'll know it because
you'll feel it, you'll feel itsomewhere in your body, that

(44:02):
this is not productive time. AndI want to put a little caveat
here is there's a difference.
And this is why I want you totune into your body and what
you're feeling. There's alsoyou'll know those of us who work
with us, we talk about somethingcalled The Slight Edge, which is
this idea that there's there's abuild up, you know, as we do our

(44:24):
one things on top of each otherone on top of an edge, we're
building momentum, we'rebuilding a foundation that's
different, that's very differentand you'll know it, you'll feel
it. That's a lot different thanjust surfing the internet.
That's that's a lot differentthan looking for a quick fix, if
you will. So you'll know ityou'll know it and you know it's

(44:44):
sometimes what we need to do iswe need to start small.
Sometimes we need to allowourselves give ourselves
permission, even build it in soyou know what I'm going to build
in 20% waste. I'm going to allowmyself an hour out of every day
to be frivolous to watch ticktock videos or whatever. And
then to set a goal for yourselfto chip away at those, and to
make those less and less andless until they disappear from

(45:06):
your life. Remember, you'regetting the results you're
getting, because of the thingsthat you're doing, and the
things that you're doing comefrom who you are. So in order to
change who we are being, we needto change our behaviors. This is
one of those examples. If wekeep doing what we're doing,

(45:28):
we're gonna be getting whatwe're getting. So we need to get
into this and start to chip awayat our behaviors. And the ad 20
is one of the best places thatyou can start to look at your
behaviors in terms of seeingwhat's getting the most bang for
my buck, and start to get rid ofthe things that aren't and start
to focus on those things thatare. So I'm just going to finish

(45:51):
up this part of thepresentation. For those of you
who aren't clients right now, ifyou're ready to implement a
proven step by step method forcreating a coaching business
that earns you a full timeincome and not just a job type
incumbent an exceptional fulltime income, doing what you love
without being stressed,overwhelmed, or even bogged down
doing things that aren't gettingthe results, you really want to

(46:13):
book a time to chat. And you cando that by going to upscale your
business.com forward slash gamedash plan. And we're happy to
have a visit with you. And justlike I said in the talk, we're
going to ask you questions. Andwe're going to find out, if we
can actually get you to adifferent place. Sometimes we
have conversations where we getsomebody to a different place

(46:35):
just in that conversation withone idea. Sometimes it turns
into a whole bunch of ideas. Andwe ended up working together.
That's cool, too. So if you wantto learn more about that you can
put learn more as well in thechat or the comments if you're
if you're seeing this at a latertime. And we'll reach out to you
and give you a link. And wepromise you know, there's we're
all about getting to know youasking you questions and

(46:56):
figuring out if we can get to abetter place. We're not about
slippery sales tactics orpressure or anything like that.
So do let us know if you want totalk more about that. And that
brings us to our conclusionhere, which is any questions or
comments? Again, I've lost myclock. It's buried underneath

(47:16):
one of my windows here, but Ithink we're probably coming to
the top of the hour. Yeah.

Jaimie Skultety (47:22):
50 after or 10 Till the next hour. Yeah.

Mark Kanty (47:25):
Yes. So I'm happy to open up the mic or, or you can
put comments in the chat orquestions in the chat anything
at all. And then we're going totransition in a few minutes, as
we always do every week where wego to our exclusive client only
call in those of you who areclients will stick on the call
and we'll dive right intowhatever pressing issues you

(47:46):
have. But generally right nowwe're open mic. And if anybody
has any questions or thoughts orcomments, please, chip in
Natalie, thank you for beinghere. We appreciate it. Lots to
think about keep work and keepputting stuff in the in the
group your comments. So I hopeyou you're getting my responses

(48:06):
and Jamie's comments. And keepkeep working on it. Okay.
Thanks, Natalie. Thanks,Natalie.

Jaimie Skultety (48:15):
Anyone else have questions? Comments?

Unknown (48:19):
Good question. And let me know it may be a conversation
for that. You know, that mayhappen after I you know, book
that call. But my challenge waskind of a chicken and egg. I'm
still figuring out a narrowerniche. So yes, I'm a career
coach slash leadership coach andleadership workshops delivered

(48:39):
kind of development. So exactly.
I like Mark, you said, talk moreto people to potential clients
to figure out their pain points.
So for me, it was even toapproach either business owners
or presidents or HR executives,you need already to have
something behind you some kindof a program. So in order even

(48:59):
to ask, Why you ask, what canyou offer? So for me, it was
even just to start askingquestions was hard, because I
did not have clarity. And I'mstill trying to figure out maybe
I should be like a leadershipdevelopment coach for fast
growing companies, because thatI noticed that trend, you know,

(49:20):
so my question would be, what doyou recommend as the first step
baby steps? How should Iapproach potential clients to
assist me with clarity? You knowwhat, they're about their pain
points? Yes. I don't know ifthat makes sense. What I said it
does.

Mark Kanty (49:35):
It does. It's a great, great question. What I
would suggest is we this is socommon is most people like
again, 8020. It's probably about98 to 90% of people rushed to
market too quickly. So they theythink they have a market and
they think they have a solutionand they rush to market and then

(49:57):
so that puts them into sellingmode, where they think they have
to push their solution onpeople. So what I would suggest
in terms of applying the 8020rule is that we spend 80% of our
time in that more in thatresearch phase, it's usually
flip people spend 20% or less inthe research and development
phase. And they'll spend 80%,trying to plug their product,

(50:18):
flip that around. So beforespeaking to people that you I
agree, you need to have moreclarity. And there's a couple of
things and I can't cover themall here in this call. But I'll
give you a couple of tips. Firstis you want to go into kind of
looking at what you know yourstrengths, where you're where
you have knowledge, if you will.
And then you want to look at sothat's the internal work, the

(50:42):
inner work, what do I want? Whodo I like? Who do I like to work
with? What kind of people do youknow? Do I like to work with
workaholics and help them becomeyou know, less workaholics? Do I
like to work with people who areopen it or balanced? You know,
what are those things thatresonate with you. So do that
inner work, start to figure outthat, then start to look at and
do some research around themarket, and do some reading and

(51:03):
studying and let your innerknowing your intuition start to
guide you where you'll start togo, Oh, I'm starting to see some
trends here, wow, this, thisparticular segment of the
market, these types of people,these types of industries, these
types of businesses, I'm reallybeing drawn to them, and look
for commonalities in that. Andyou're looking for the marriage

(51:25):
between the two, right, and ittypically will happen, the
reason you're feeling excitedand, and pumped up, when you
start to read certain things,and you start to do your
research is because you have thesolution, you know, you're all I
can help that person. And soyou're looking for trends, and
you're starting to figure outwhat is that 8020 rule in there?
Who are those people that I canhelp? What's the 20% that I

(51:48):
actually can help and the 80%that don't quite fit. So we do
that by by doing research byreading. And there's great
resources online, beginning withGoogle, Google is your friend.
So start by, you know, pluggingin a question or problem and see
what comes up to start lookingat results that are coming up,

(52:10):
then go to certain forums likeReddit, and Quora and things
like that. There's some greatq&a type forums out there and
look for questions that peopleare asking that they're looking
for solutions. And it's amazingwhen you do this, you'll start
and you'll find, I think Johnnycould verify this because he and
I had this chat a couple weeksago, that you'll be going down

(52:30):
and I've done this many times isyou'll go down and you'll find
somebody's asking exactly theright question. You get all
excited. I know Johnny sharedone with me about a week ago and
said, Holy cow, this person isexactly the person I want to
work with. They're askingexactly the question. And you'll
find that as you do your work.

(52:51):
And then you'll start to takethat and then you start to have
the conversations based on thatyou'll look for people that are
like that. So why do we getresistance from people, you
know, they're too busy, theydon't want to talk to us unless
we have a solution or whatever.
We're basically talking to thewrong people. So think about you
know, those people that areposting questions that are

(53:11):
looking for solutions, that'sagain, a lesson in the 8020,
where we often spend our timefocusing on the 80% that are
sitting there like this thatdon't want to hear anything, and
pounding and chasing andpushing, instead of the 20% that
are looking for answers. They'reputting questions out there. So
we could start conversationsthat way, too. And not be

(53:34):
offended by it again, like thatlearning to love the nose as 10
people, would you be open tohave a conversation about this?
Nine of them will say no, pissoff. I don't want to buy
anything. And why don't go?
Sure. I'll talk to you aboutthat. And then just talk to
them. Ask them questions. And ifI can, with your questions, get

(53:58):
good at do the homework first.
So you see you're asking goodquestions that then stimulate
the conversation that somebodyleaves that conversation going.
Wow, am I ever glad I talkedwith you? You know, you really
got me thinking. And askingquestions is the way to get
people thinking not makingstatements. Yeah. Yeah.

Unknown (54:17):
Thank you. That was brilliant. Mark.

Mark Kanty (54:19):
Good. I hope that helps. Yeah. And we'll look
forward to talking and you'llprobably talk with Jamie first,
and then we'll, I'll lookforward to talking with you as
well.

Jaimie Skultety (54:28):
And I was gonna say about, oh, no, I'm sorry.
Let's sorry. I didn't mean tocut you off. Go ahead.

Unknown (54:35):
No, I get what you're saying. Thank you for the for
the wonderful session and ofcourse answering my question.
Appreciate that. You bet.

Jaimie Skultety (54:42):
And I just wanted to comment on what you
mentioned too, about you know,having having something to sell
having your program. So we seethis as a common kind of
mistake, if you will, as peopleare they go ahead and build out
a whole entire program and theydon't even know who's going to
want it like it's it's cartbefore the horse We talk about a
lot. So don't worry about like,I've got to have something to

(55:04):
sell them. That's not That's notyour goal at this moment. So

Mark Kanty (55:07):
yeah, there's an old story about and we need to
transition here. But there's anold story about building a
better mousetrap, not to do theresearch and find out if the
story is myth or real. But thatway back when somebody decided
to build a better mousetrap, andthey put all their time and
effort into creating thisamazing mousetrap, and then they
went out, and nobody would buyit. And why? Because the little

(55:33):
piece of wood with the spring onit was working just fine. And so
nobody had a problem. And thisis a lot of coaches get this
idea in their head that they'vegot a solution, and then they
run around trying to find aproblem to fit the solution.
Again, it's it's the opposite,spend 80% of your time finding

(55:53):
out what problems people arehaving, drilling into those. So
that's saying people don't carehow much you know, until they
know how much you care. The wayyou show you care, is by asking
your questions, helping uncoverthose problems that are really
stirring deep down inside. Thenthey're open to a solution.

(56:14):
Yeah. And on that we need to wereally need to go so we're going
to transition to our client onlycalled Larissa. Thank you for
joining us today. And Natalietoo. I know you're gone. But if
you watch the recording,appreciate you being here as a
visitor as well, and we'll lookforward to talking with you.

Unknown (56:33):
Thank you for listening to the upscale your business
podcast. If you liked thisepisode, and want to learn more
about launching or growing anonline coaching business. Be
sure to add this podcast to yourlibrary. To learn more about how
you can get more clients onlinefor your coaching or consulting
business visit upscale yourbusiness.com