Upscale Your Coaching Business Podcast
Upscale Your Coaching Business Podcast
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.
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Welcome to the upscale your business podcast, the show for coaches, consultants, and those considering becoming one. Listen to learn the strategies mindsets and processes for getting clients and creating an online income stream. Join your hosts Jamie skull Teddi, marketing strategist and Mark Canty clarity coach, as they share their knowledge and expertise by helping you design a business that works. Learn more about Jamie mark and their proprietary upscale method at upscale your business.com. Now here's Jamie and mark with today's episode. Go ahead. You don't
Mark Kanty:I always I'm a member and we're recording now. Welcome, Johnny. We're just a little early, but not too early. We're gonna hopefully we'll have
Jaimie Skultety:Natalie, so let me let them in. Yeah,
Mark Kanty:great. That's a party, party and welcome everyone and and to those and we know a lot of people can't necessarily fit this in, but maybe watching at a later date. So that's great. So just want to welcome those who are present and in the moment and those who are in the future moment. So exciting to have everyone here today. Yeah. What was I just thinking or saying? Oh, yeah, I was gonna ask just a little technical question here. But you know, it's good for us all to learn together. But but we share, obviously share a presentation and slides. And I can't necessarily see the viewers view of what they're seeing so and Jamie, you be able to probably answer this question for me. So when I share slides, it removes everybody from your screen, like you've got a full screen setup. So you can't see any of the participants or can you still
Jaimie Skultety:see? You see, like, you know, like one of those like, either up top or on the side?
Mark Kanty:Yeah, okay, good. Yeah, because I've been in meetings with both that and most of them usually on Zoom, I think some people have it set up where they can block them completely. But most of the time I see along the top, and then you can scroll, you know, you get I don't know four or five, depending on how big your screen is, you get a few longer time. Let's dive in. We got a lot to cover here. Today, I'm going to go fast and furious, as always. So it's a pleasure to have everybody here. And please, please, please, please come play with us be a participant, not just a spectator. And with that in mind, give me a one or a thumbs up or a yay, or a hey, or whatever you want in the chat just to let me know that you're hearing us and Jamie and I and you can see us and we'll get you used to being interactive here. So go ahead and just find the chat should be at the bottom of the bar there, click on that little window will open. There we go. I've got a thumbs up. I hear you loud and clear. This is great. Awesome, thank you. And I'm going to go ahead and share slides. And let me do that. And then you can give me some more feedback just to confirm that you can see the slides that I'm putting up here. So again, if you can get one or thumbs up or a happy face, or whatever you're so inclined to do. And let me know if you can see the slides. All right, great. Okay, we've got some feedback coming in. Awesome. As always, the chat is there for you to throw in, you know, ideas, thoughts, contribute to the topic, ask questions. And we'll be monitoring those and you know, I will wait an appropriate time probably, to address them. So usually addressing things in in lumps, so that we don't kind of break the flow of what we're talking about, but put them in there because it's best to get them out of your brain as they pop up, then rather than waiting till the end, because you may forget them. So that's kind of how the brain works. And that's how our chat works. So and I'm gonna ask you some questions, I want you to continue to play with me in the sandbox here. So here's a quote for you. The 8020 principle applied to business has one key theme to generate the most amount of money with the least expenditure of assets and effort. So this is a powerful, powerful concept. And it's by Richard Koch. And if you're not familiar with the book, there's a couple of them out there. But he wrote a book on the 8020 as it applies to business and then I think he did a follow up version as that applies to life. But highly recommended read would really encourage you to do that. And you'll see why in a minute as we get further into this particular topic. So let's talk about this and what we're going to cover today. So we're going to cover the 8020 So we're gonna talk about it as a concept and how it applies really to all areas of your life. The reality is there's an imbalance between causes Results input an output effort and reward. So we're gonna talk about that, we're going to talk about how 20% of your effort is actually responsible for 80% of your results. So that's really important. A lot of people know that kind of give that lip service, it's hanging out here. But what I want to do is show you how you can take that and turn it on its head. So 80% of what you achieve will come from just 20% of your time. So is that an amazing thing? Think about it, if you could figure this out. And that's why I'm going to give you the tools to do that, then you could literally cut out 80% of the time that you're currently working and focus just on that. 20% Would that be a bizarre concept? Isn't that a bizarre concept? I don't know what the math is. But it's kind of like, I don't know, I'm going to ballpark here. It'd be like, if you're working an eight hour day, you'd be working just two hours of those days, where is approximately where you're being productive, is that 20%, by the way is to innovate 20%? No, it would be 25%. So less than two. So be like an hour and 33 minutes, maybe if I got my math, right. So you'd work in only an hour and 33 minutes of your day is actually producing 80% of your output of your results. That's incredible, isn't it. And you know, I digress, or I get off topic, because we're gonna go into that, as always stick around, we're going to bait you and tempt you and give you a bribe, to listen all the way through. So you get this information. It's important, because any idea or any concept that you're considering, needs to be put into context. And what do I mean by that? Well, we're here to talk about business building a coaching business. So when we talk about contracts, we talked about where does this fit into the strategy, the bigger picture of what I'm trying to achieve here. So we want to, we always want to hang until the end so that we can then find a way and hopefully, Jamie and I help you put that into context to know how that's going to work. And I'm usually pretty specific with this with giving you some action steps to take. So stick around. And the other the reason to stick around to if nothing else, is just to find out what the gift is at the end that we're gonna give you. So please, please be with us. So let me ask you this question. And again, I'll I'll ask you to participate with me. Do you often feel like you're putting in far more effort than the results? Are, you're getting that the results demonstrate that you're getting type? Yes, in the chat. If that's you, you often feel like you're, you're just putting it in, you're pounding and you're pounding and you go, Oh, I'm just not seeing anything come out the other end, or I'm seeing a little bit come out the other end? Yeah, thank you. Yep. Yes, I appreciate you participating. So we're getting I'm I'm finally got my screens organized, where I can actually see least some of the chat, I can't see it all, because I've got too many things going on here. But I can see some Yups and some yeses and some happy faces here. So what is this thing called the 8020 principle, and most people are aware of it now. But I want to put this in a new light. And I also want to kind of move this to the top of your consciousness, so that you become 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 first step of any thing, any change, any behavior that we want to adopt, or anything we want to achieve is awareness is this ideal. One of my mentors used to he'd say call, call it noticing for. So just noticing what's going on in your life then puts your 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 and more and more that'll come in. And then that's how you start to work with things. So why is this important? Because it's counterintuitive, you know, we're kind of trained to expect that causes will basically be roughly the same as what we put in. So input 50 get 50 back out again. And this is a problem because it's just not reality. You know, this is a fallacy, if you will. And it's one of the most inaccurate and harmful ways to see the world. So we really need to be aware of this. So it's a benchmark for this imbalance, this this catchphrase. And it's important to kind of think about it this way. We call it the 8020 rule or principle, or the Pareto principle, but I'll tell you why in a minute why it's called that. But it's not always that way. The the idea that I want to get across here is that there's an imbalance and sometimes it's 8020. Sometimes it's 95, five, sometimes it's 99 one, so it can be that big a So there's a real, the important part here is it's a very large to a very small. So we want to be aware of that and don't get hung up on on the number itself. The typical pattern will show if you average everything out that 80% of output actually results from 20% of input. So therefore, 80% of consequences flow from 20% of causes, or that 80% of results come from 20% of your effort. So the, you know, the 8020 principle, it asserts that when two sets of data relating to causes or results can be analyzed, the most likely result is that there will be a pattern of imbalance. And quite often, we're quite surprised at that. And I'm going to share some stuff with that you may have heard of in a minute, but you may even find some surprises in some of the data that I'm going to share with you. But the end, let me see if I got one more point here, which I think I do. So the idea that a minority of causes and inputs and effort actually lead to the majority of what you're going to get out of you and your business. And this is a key thing can obtain much better results, which with much less effort, expense, and investment, if you figure this out, and if you start to become consciously aware of it, and it never ends, by the way, so you're always looking for it. So let me my slides aren't quite sinking here the way I want them to. But that's okay, you see a couple of pictures on here. I'll just jump ahead. So what's the background of this? Well, it was first discovered by this Italian economist called Vilfredo. Pareto in 1897. And that's why we sometimes refer to it or people, you'll hear it referred to as The Pareto principle. But what he noticed was the 80% of the wealth and income in Italy, and he looked around the world to was held by 20% of the population. And then he started to look around at different countries. And he found that this was true. So he was doing this and looking at these numbers, then he just kind of fell off the face of the earth, you didn't really hear any more from them. And then along comes this new guy. And it resurfaced in 1951. Think about that at 97. And it just kind of got lost got forgotten. And then in 1951, this quality guru named Joseph, Jura Duran, came up with this idea, he called it the rule of the vital few. And he and what he was talking about was the 8020 rule. Now his purpose, he was looking at quality. So he was looking at how can problems be eliminated quickly and cheaply. By focusing on the vital few problems, you'll also hear me sometimes talk about constraint theory. That's the next evolution of this. If you want to get into some fascinating stuff, start looking at constraints, and the theory of constraints. Because that's another thing that follows this whole principle, the idea that we're always looking at the wrong thing. We think the bottleneck is here, but in fact, it's over here. And when we can release that bottleneck, all of a sudden, everything just starts to work. So it's this vital few that we want to focus on the vital few problems. And then he talked about and coined this phrase, the trivial many, and you may have heard this before to this phrasing is that the trivial many, so? It's so what do we do, we spend all of our time focusing on the trivial many, and we give lip service or we don't even pay attention to the vital few. And that's a problem. And here's why this is important, because it's counterintuitive. We don't realize this is going on, because we've kind of been trained that to believe that everything is 5050. And I kind of talked about this before, you know, it's a fallacy. And it really is harmful to the way we think. And what it causes is it causes us to get caught in this whole concept of busy work, you know, where we're just putting out we're putting it we're putting out and we feel like oh, I spent eight hours or nine hours, 10 hours in front of the the screen, I must have accomplished something, surely, I was productive. And that's not reality at all. The 8020 principle asserts that I went through this before, so I'm kind of duplicating my thinking here. But this is why it's so important. And I want to hit home on this again, and I'm repeating myself, you and your business can obtain much better results with much less effort, expense for investment. Jamie, I went through this with and I know I've got a blank screen because I'm gonna go a little off topic here from it. But as we refined and looked at our process, you know, when we were looking at what is now the 90 day process, it was more like a year. And as we looked at it more and more and we started to and we continually do this, we continue to look at what are the vital few things. What's the 8020 rule? How does it apply to this and we're still doing that to this day. We will continue to change things and we may even remove big attempt to put in more chunks that are even more focused on the 8020. Because that's our our goal, if you will, is to get as much as we can out of this for you. That's our goal. That's our job, if you will. So, why does this matter? Well, number one, increased productivity, the 8020 rule helps you identify and prioritize the most important tasks and activities leading to more effective use of your time, and resources. And before I finished today, I'm going to give you how to do that, I'm going to give you the how to have that. So this isn't just something that you can think about, it's something I'm going to give you an assignment to do. And I'll tell you how specifically, improve profitability by focusing on the 20% of the products, or the customers or the services that businesses have this is very general that drive 80% of the results, you can increase your profits and growth. So this relates to Jamie and I talk about this all the time. And you'll hear us talk about this is stop chasing, here's what happens in our business is, and this is a direct application of the 8020 rule is we tend to spend 80% of our time, energy effort and money chasing people who really aren't interested, or who aren't ready for the solution that we offer. And we forget about the 10 or 20% that do. So stop chasing, there's a great book, and we recommend that book. What's it called again, Jamie, it's called Don't chase
Jaimie Skultety:experts never chase experts never
Mark Kanty:chase. What's an expert? An expert is somebody who understands the 8020 rule and really applies it. So instead, focus your focus your energy, and what do we do, like we're programmed to this to think about? We also talked, there's a little model that I use, and Jamie's familiar shall laugh at this. But it's learning to love the nose, learning to love the nose. So like, Can we do 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, if let's say that each of those people is worth let's say, $10. So that's $100 in that 10. So where's the real money in the yeses are in the nose? Play with me here. Where's the real money? Go ahead, play with me by putting a number in the chat. where's the where's the real money? Think about this. I'm trying to get your brains work in here. We got 10 people, one says yes. Nine say no, they're all worth $10. Where's the real money? No, it's in the nose. Those notes are worth $90. To me. The yes is worth 10. Johnny probably heard this example before, because he's our sales resident sales guru. But you see, the idea is that I can only get to that, yes. When I go through the nose. So if I apply the 8020 rule to this and think about this, that's where we want to put our energy, right? We want to go through that. And then but what does it our brain do? It goes, Oh, I had a terrible day. Well, what happened? Honey went well, well, nine people said no. Oh, and what? Why is that terrible? Oh, you wouldn't believe they beat up on me. They told me I was charging too much. They told they were saying how do you prove this? How do you do? How do you get off saying that? You've got a solution? Right? Oh, this they just beat me up all day long. And then what but how do you you said that? Nine? But you talk to 10 people? What about the 10th? Person? Oh, yeah. They said yes. And they signed up. We do that, don't we? Or we put something out on we put a post out on on Facebook or LinkedIn or something. And we get all of this feedback coming in. And then down somewhere in the mix comes this troll that comes along and says you're an idiot. None of this applies. Go get a real job. What do we spend the rest of our time doing ruminating over that one comment? When 90% 80 90% of the comments were great, good, I get the idea of where we go. So that's why it's important that we become aware of this, because we have to fight it. We have to become aware in order to fight and resist that tendency to focus on the wrong side of the equation. So it creates better decision making the 8020 rule provides a framework for understanding the relative importance of different factors in your business, enabling you to make better data driven decisions. So in short, you know the 8020 rule and applying it can help you make better decisions to streamline your operations to achieve your goals more efficiently, quicker, faster, more effectively. This is what the 8020 rule is all about. So let me ask you this. Have you noticed that usually you don't get back what you put in that sometimes you get very much less. And sometimes you get very much more of you notice that you noticed that sometimes you have a day where you just kind of do one thing. And it's like holy cow, it just explodes. And you just feel so gratified by that one thing, and it only 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 any results. This is the 8020 rule happening. It's the 8020 rule playing with you, and toying with you. Sorry,
Jaimie Skultety:if I may jump in, it's kind of like, you know, having your calendar filled up with people and consults and all of that. And then you find that you're speaking to people who are just, you know, they're just not the fit. And so then your whole day is just taken up with with that if you just put the people on your calendar, who were really interested and really are ready.
Mark Kanty:Yeah. And this is why we hit home so much on the avatar or your audience, because the better you can get at finding and speaking to the right people, the less you're going to be drained, the less of your energy is going to be put into speaking to the wrong people. There are lots of people out there that are starving and hungry for the solutions that you have to offer. Don't get sucked into the idea that, Oh, it's really competitive, or nobody wants what I have to offer or it's saturated, it's all bunk. It's bull, it's not reality. Okay, let's run through this real quick. Inputs are not equal to outputs, these are realities, these, this is the way the world works right now. 20% of products produce about 80% of sales, you go into retail, check the shops, they'll tell you this, this is what happens clothing stores everywhere, groceries, food, 20% of customers equal 80% of the revenue 20% of your clothes will be worn 80% of the time, how many 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't fight it, I don't care, it actually makes my life easier. But you think about it, think about your closet, or your shoes, or you have those favorites, your shoes, your belts, your hats, your coats, you will wear them, you'll where 80% of them 20 or 20% of them 80% of the time, or more. How does this apply to effort and results 80% of the time 80% of what you achieve comes from 20% of your time 80% of the money you make comes from 20% of your activities, a lot of data here I'm giving you training. I'm trying to give you some some fuel here. Here's what's interesting is we look at causes and consequences in the world. 20% of criminals represent 80% of the valuable crime 20% of drivers cause 80% of all accidents. 20% of people who get married accounted for 80% of all divorces. Did you know that 20% of your carpets will get 80% of the Where have you ever seen? Have you ever been in an office and you and I don't know if you've ever seen this? But here's an example of a brilliant business example. But in commercial applications, does anybody know how they do cars? Most people do carpets now and in commercial applications, like in office buildings and stuff. So anybody ever seen that? No? Really? Nobody? Oh, I'm surprised. They do it in squares. So when you buy commercial carpet, you they don't come in with rolls, they come in with a stack of squares. And why did they do that? Because somebody figured out we can save a lot of money. If we only replace the 20% that gets the 80% of the where tremendous amount of money saved. Here's another one. I don't know if you were aware of this. Years and years and years ago, my mother claims to be the one who came up with this idea, by the way, is they used to paint the lines down the middle of the road. And they repaint the lines, repaint the lines, and then they repave the road and they get potholes and they don't have to deal with all this repair. Now my mother claims that she sent in a letter to the editor or something in the newspaper backing this would have been in the 60s or something. And this was her idea. She said why don't you move the line. Instead of always repaving the same spots and fixing the same potholes. But if you'll notice this go down the road and notice how the line on the road is off. If you look at the one shoulder will be bigger than the other. Why did they do that? Because they realize they figured out my mom figured it out and told them how to do this. The engineers figured out that if we move the line, then we can move the wear pattern and we can actually get more mileage out of that asphalt. Isn't that fascinating? So these are some practical applications of how this is working in the world, your carpets, the road, there's all kinds of other things that are happening to your dishes. Everything. This applies to 20% of diseases account for 80% of all health care costs and resources. While isn't it? It's just an everything. So let's pause for a minute, I give you a few business examples. But I want you to think about you for a moment. And tell me what are your takeaways at this point in time, what what's percolating for you around the 8020 rule? And go ahead and give me things that are coming up for you. In the chat. Just any ideas at all? Little brainstorm, there's no right, there's no wrong, there's no good, there's no bad.
Jaimie Skultety:Larissa states, my numbers are even lower than the 20%.
Mark Kanty:Yeah, and you'll find that you'll find there's this this flux, I didn't put it in here, but there's an example I think it was in turn, I remember what year it was, it was like around 2006 2007. I didn't bother putting anything here. But it was the movie industry. So you know that 20% of all movies make up 80% of all box office profits and receipts and revenue. And in 2006, it was actually 98.6%. So what happened was 1.4%, or 1.3% of the movies represented all over the represented 80% Of all the revenue that was brought in just just less than 2%. And that wild. So the idea of the idea here is not an exact number, but there's a huge imbalance. So we need to be aware of that. So what ideas are coming up for you what takeaways are coming up for you that you can apply? Think about this? How can you use this information to your advantage?
Unknown:Well, I guess clarity. Like for coaches, it's important to have clarity about the clients, just as you mentioned earlier, to focus on results or just to kind of, I feel I need to analyze where the most lucrative clients are coming from and focus on them. So yes.
Mark Kanty:Beautiful, Larissa, exactly this idea of really knowing you can never know enough about your audience or your avatar. So really critical. Larissa, that's, that's a very good point, one of the first places to start, you know, in your business is how well do I really know them? Now, I'll give you an add on to that concept is how can we go about doing that? And how can we apply the 8020 rule in terms of our conversations? And I'll give you some hints here. When we think about conversations, conversations are give and take back and forth. Conversations comprise statements, ideas, and questions. So how could we use the 8020 rule to be more effective? Questions, spend 80% of your time asking questions. I am an exerciser. I always have been do due to various personal reasons from my youth and a bad accident that I was in that I have to exercise every day, or I'd probably be in a wheelchair. When I go to the gym, a lot of guys come in and women and they immediately jump on weights or whatever and start doing things and then they go out. And I feel their pain. I spend about 80% of my time on the floor stretching and doing floor work. It's a different way of looking at exercise. Why? Because that is one of the most effective things that I know works in terms of exercise that if you change your exercise routine and spend 20% of your time on resistance training, and 80% on stretching and core function, you'll get better results. Just an example. Okay, any other ideas? What else is coming up for you in terms of the 8020 rule?
Jaimie Skultety:Feel free to open up your mic. If you have a comment
Mark Kanty:you want if you want to jump in that or speak in the chat, whatever works for you. How about time management? Let's let's come back to time management. How about how about giving yourself this rule saying I'm going to make sure that I spend less than 20% of my time surfing social media, or looking things up or playing with my website or whatever? How about I spend 80% of my time and if you're new to business and here's the rule, we're going to start to put this in the program until you get to $1,000,000.80 percent of your business activity needs to be speaking with prospects and clients People move watch much too quickly, they flip that around, they spend 20% of their time talking to prospects Where's where, what's the best way to learn about your audience and your avatar, speaking with people, not reading about them, not going to the next webinar or workshop or downloading the next book and reading it, but actually speaking to people take all the pressure off of yourself and them and spend 80% of your time speaking to people and 80% of that time asking questions, finding out where they're at, what are their struggles? What are they trying to accomplish? And then you know what, when you start to do that, you'll get very good at figuring out who to talk to. And when you're in those conversations, you'll also get very good at figuring out whether they need what you have to offer or not. And you'll get very excited and so will they they'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? And you can go yes. And they say, Where do I sign up? Versus all those conversations where there isn't a fit, and we're trying to force it? We're trying to we're trying to force this square peg peg into the round hole. I digress. Thank you. Thank you for participating. I appreciate it. So here's the reality, you can't escape this. In every market, there will be some businesses that are much better at satisfying customer needs. need to be aware of that, is that going to be you? I hope so. In every market, there will be some businesses that are better at minimizing costs relative to revenue. Don't worry about that until you get your first million dollars in revenue. You can there's there's a very good way of looking at this. And Jamie has heard me use this example for what's what's the best way to maximize savings in business? How can you? How can you get the maximum savings in business? Anybody want to guess? No. Nobody's gonna guess Jamie can guess for me, then?
Jaimie Skultety:Well, I was guessing invest, invest in the right things.
Mark Kanty:Now, that's the opposite. If you think about it, how can I how can I get the maximum amount of savings? How can I save the maximum amount of money in my business? It's kind of obvious.
Jaimie Skultety:Don't don't spend any. Yeah, don't
Mark Kanty:spend any quit? Yeah. Yeah. So a business that's in trouble. That's not making enough money. And this goes back to my days. And you know, pre internet days is the business that's not making any revenue that's not profitable. And spending all their time figuring out how to get caught, you can't save your way to success. So they're spending 80% of their time, money and effort on saving money. When the real problem is on the other side of the business, it's generating revenue 80% of your time generating revenue. Don't worry about saving it until you got enough that you need to worry about saving. So where was it? In every market, there will be some businesses that generate higher profits than others. And overtime 80% of the market will be supplied by 20% or less of the businesses that are appealing to that market. The car industry in the automotive industry can't run with the number again, I don't know the stats on your. But when the automotive industry start I think there was something like 900 manufacturers in the United States, making cars. Not hard to believe it's amazing. Computers. I don't know those of you who I'm dating myself, but I remember you know, when the when the first microcomputers came out, and the lab at the University that I went to had this micro computer lab and we had we had to have had 1215 Different brands there. Everybody was into it. Sony had a computer. You know all the all the Japanese companies had computers and a whole bunch of others. There were tons of American companies. Osborne was a big one that was going to be I remember in the day, Osborne was going to be the computer that everybody had was burned went bankrupt, like three years later, Gateway. Yeah, Gateway was a was one that made a run on it. And then of course, it all settled in what happened IBM dominated the market and then blew it. Interestingly enough, yeah. So overtime 80% will be supplied by 20% of or less so the business's existing and new businesses will seek to innovate and obtain a larger share of smaller but defensible part of the market. Why is this important? It's important because you need to realize that you're in a space and you have this amazing opportunity. It's called the Internet and it's called the world it means that when when local when it used to all be about local business, you had a finite number of clients that you could actually work with. But now we have this opportunity to segment and chip out pieces of the market and to dominate them. So think about when when you used to go out for a cup of coffee, you'd go to a diner, or you'd go to a restaurant. Nobody ever thought that there could be a coffee shop that did nothing but serve coffee. I love to think about when I remember when kernels came out, I think how who whoever thought that, you know, if you go back now, again, I'm dating myself go back 40 or 50 years ago and in say to somebody, you know, one day there will be stores that sell nothing but popcorn. You'd think they were insane. But this is what happens is markets divide and then they subdivide, and they niche down, they become smaller. Anyhow, again, I digress. But the important part here is realize that there's the players who want to really be successful in any business are always innovating to get a larger share of a smaller part. And so they're looking for that right little piece, add 20 gain, they're looking for that, that piece of the marketplace where they can dominate 80% of the profits from the entire market will reside and 20% of the niches 20% of businesses 20% of customers or clients 20% of products. Now I want to talk a little bit just for a moment, I want to pause here for a minute about the 80% of the entire market will reside in 20% of the niches. Now this goes back pre internet days, and it applies to the internet as well. And those of you who are in our program are going to know this but name a few of those. What are the biggies? Can you name a few of those niches? Think about what what people are always striving for. So what's one of the biggest pains that people have? Now, what people always talking about what are people always complaining? Why are you here on this call?
Jaimie Skultety:Finances money, and money.
Mark Kanty:How to make money, how to save money? How to get a job, all of those things fall into the money market? Yes. Johnny got it. Health and Beauty is another one. So anything to do with pain, suffering, health, wellness, weight loss, fitness. Think about how long these industries have been around. These are the big players. And I'll ask for a third one. We won't go any further. But but there's kind of three biggies. There's a third one.
Unknown:Maybe like relationships? Yes, I was just gonna say we
Mark Kanty:got 100% Yeah. So relationships. Yes. So love, companionship, partnership, marriage, divorce, dating, those, those are the three biggest niches that never seem to go away. Why? Because the problems never, ever go away. Everybody's always looking for a solution in those niches. So, so think about those, and then think about subsets of that. So I'll give you a direct example of that. One of our clients, as a doctor, yet did some training and had a particular passion and interest in marriage counseling. So he took the relationship niche. And then he and she was a partnership, a couple and took a segment out of that and said, let's work on relationships with I don't think it was specifically surgeons, but with medical with with medical doctors. Great little sub niche to drill down into, and a very clever one, because we know that statistically, those professions are high stress and do tend to have a higher incidence of divorce. And what a great
Jaimie Skultety:medical doctor, he was a medical doctor too, so that he was able to speak their language.
Mark Kanty:So he was able to speak their language. So he knew he went after what he knew. And he knew that there were a lot of people that he worked with through his life that were in a lot of pain. They were on their second, third fourth divorces. And if he could help heal those relationships, then he found himself a segment of the market to work on. So there's an example of that subset. Another example in maybe in the health care niche would be rather than just weight loss, maybe I'll give you I'll give you a direct example. My wife and I opened up a fitness center in 1992. And this was kind of before it was popular. And one of the things that we did was we opened up a women's only fitness center. So we section the market. Everybody else had health clubs and gyms and metaphoric that of the 80s they in the 80s they were the big dating pool. For him, that's where they were the nightclubs of the 80s. In the 90s, it shifted and we opened up this niche, which was women only. But then not only that, but we targeted pre and post natal women. So instead of going after the dating game, the 1820 25 year olds that were all about hard bodies and attracting a mate, we actually went after the segment of the market that were worried about how their bodies were going to look after they gave birth. So prenatal classes, classes with baby postnatal classes, how can I get my body back? How can I turn instead of worrying about attracting a mate? How can I adopt functional fitness? So in other words, how can I carry a baby and make dinner and do these things all at the same time? Functional Fitness. And that was our how we took that niche, and sub divided it ended up with three different businesses out of that. So there's an example. So I could go on and on. But I want you to think about these things. Because this is what I'm trying to do is get you're thinking about your own avatar, your own audience, your own product, your own solution. The most profitable businesses tend to have the highest average profit per employee. This is as you grow your business. But the profit generated per employee, and I put in here or outsourcer tends to be very unequal. About 80% of profits are usually generated by 20% of the employees, or outsourcers. And services are an important word because as you grow your team in the space that we're in, chances are you will work with virtual assistants and outsourcers a lot more common than actually needing to or having to employ hire an employee. So wonderful way of working. By the way, and a great way to build your business, we can talk to you more about that as your business grows. The principles of unequal effort and return therefore operate at all levels of business. broad markets, niches products, customers, employees, outsourcers it affects everything that we do everything that applies to our business. So I've opened up your pathway here. And now I want to kind of bring you back to the micro what's in it for me, how does this apply to me. And this is going to take us to, as I promised, your gift, and my challenge to you. So what we want you to do is in the chat, put in if you want this workbook, we want you to put at 20 in the comment section, if you're one of our future dated people who we're talking to in the future, then put in the comments section, find a place around here to communicate with us if you need to send us an email or, or give us a PM, somewhere and we will send you this PDF workbook, which will educate you help you give you some ideas. So there's some questions here. And I am here to help you layer things. And I'm not going to I'm not going to give you too much of a peek behind the veil, I'm not going to show you the pages. And it's also going to give you some some work that you can do to monitor so that you can figure out where you're at 20 is powerful little workbook. And those of you who are working with us full time in our program, you know what's in there. 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, I want to, I don't even know where I got it. Now here it is in my second drawer. So I still do this stuff. So so when I find myself concerned about my productivity, that's all I'm going to show you. I use that workbook. So this is something that is an exercise that you can pull out and do you know, particularly if you feel like you know what, I think I'm wasting a lot of time, I think I'm spinning my tires, I think I'm just going through the motions here, and you'll know it, you'll know it because you'll feel it, you'll feel it somewhere in your body, that this is not productive time. And I want to put a little caveat here is there's a difference. And this is why I want you to tune into your body and what you're feeling. There's also you'll know those of us who work with us, we talk about something called The Slight Edge, which is this idea that there's there's a build up, you know, as we do our one things on top of each other one on top of an edge, we're building momentum, we're building a foundation that's different, that's very different and you'll know it, you'll feel it. That's a lot different than just surfing the internet. That's that's a lot different than looking for a quick fix, if you will. So you'll know it you'll know it and you know it's sometimes what we need to do is we need to start small. Sometimes we need to allow ourselves give ourselves permission, even build it in so you know what I'm going to build in 20% waste. I'm going to allow myself an hour out of every day to be frivolous to watch tick tock videos or whatever. And then to set a goal for yourself to chip away at those, and to make those less and less and less until they disappear from your life. Remember, you're getting the results you're getting, because of the things that you're doing, and the things that you're doing come from who you are. So in order to change who we are being, we need to change our behaviors. This is one of those examples. If we keep doing what we're doing, we're gonna be getting what we're getting. So we need to get into this and start to chip away at our behaviors. And the ad 20 is one of the best places that you can start to look at your behaviors in terms of seeing what's getting the most bang for my buck, and start to get rid of the things that aren't and start to focus on those things that are. So I'm just going to finish up this part of the presentation. For those of you who aren't clients right now, if you're ready to implement a proven step by step method for creating a coaching business that earns you a full time income and not just a job type incumbent an exceptional full time income, doing what you love without being stressed, overwhelmed, or even bogged down doing things that aren't getting the results, you really want to book a time to chat. And you can do that by going to upscale your business.com forward slash game dash plan. And we're happy to have a visit with you. And just like I said in the talk, we're going to ask you questions. And we're going to find out, if we can actually get you to a different place. Sometimes we have conversations where we get somebody to a different place just in that conversation with one idea. Sometimes it turns into a whole bunch of ideas. And we ended up working together. That's cool, too. So if you want to learn more about that you can put learn more as well in the chat or the comments if you're if you're seeing this at a later time. And we'll reach out to you and give you a link. And we promise you know, there's we're all about getting to know you asking you questions and figuring out if we can get to a better place. We're not about slippery sales tactics or pressure or anything like that. So do let us know if you want to talk more about that. And that brings us to our conclusion here, which is any questions or comments? Again, I've lost my clock. It's buried underneath one of my windows here, but I think we're probably coming to the top of the hour. Yeah.
Jaimie Skultety:50 after or 10 Till the next hour. Yeah.
Mark Kanty:Yes. So I'm happy to open up the mic or, or you can put comments in the chat or questions in the chat anything at all. And then we're going to transition in a few minutes, as we always do every week where we go to our exclusive client only call in those of you who are clients will stick on the call and we'll dive right into whatever pressing issues you have. But generally right now we're open mic. And if anybody has any questions or thoughts or comments, please, chip in Natalie, thank you for being here. We appreciate it. Lots to think about keep work and keep putting stuff in the in the group your comments. So I hope you you're getting my responses and Jamie's comments. And keep keep working on it. Okay. Thanks, Natalie. Thanks, Natalie.
Jaimie Skultety:Anyone else have questions? Comments?
Unknown:Good question. And let me know it may be a conversation for that. You know, that may happen after I you know, book that call. But my challenge was kind of a chicken and egg. I'm still figuring out a narrower niche. So yes, I'm a career coach slash leadership coach and leadership workshops delivered kind of development. So exactly. I like Mark, you said, talk more to people to potential clients to figure out their pain points. So for me, it was even to approach either business owners or presidents or HR executives, you need already to have something behind you some kind of a program. So in order even to ask, Why you ask, what can you offer? So for me, it was even just to start asking questions was hard, because I did not have clarity. And I'm still trying to figure out maybe I should be like a leadership development coach for fast growing companies, because that I noticed that trend, you know, so my question would be, what do you recommend as the first step baby steps? How should I approach potential clients to assist me with clarity? You know what, they're about their pain points? Yes. I don't know if that makes sense. What I said it does.
Mark Kanty:It does. It's a great, great question. What I would suggest is we this is so common is most people like again, 8020. It's probably about 98 to 90% of people rushed to market too quickly. So they they think they have a market and they think they have a solution and they rush to market and then so that puts them into selling mode, where they think they have to push their solution on people. So what I would suggest in terms of applying the 8020 rule is that we spend 80% of our time in that more in that research phase, it's usually flip people spend 20% or less in the research and development phase. And they'll spend 80%, trying to plug their product, flip that around. So before speaking to people that you I agree, you need to have more clarity. And there's a couple of things and I can't cover them all here in this call. But I'll give you a couple of tips. First is you want to go into kind of looking at what you know your strengths, where you're where you have knowledge, if you will. And then you want to look at so that's the internal work, the inner work, what do I want? Who do I like? Who do I like to work with? What kind of people do you know? Do I like to work with workaholics and help them become you know, less workaholics? Do I like to work with people who are open it or balanced? You know, what are those things that resonate with you. So do that inner work, start to figure out that, then start to look at and do some research around the market, and do some reading and studying and let your inner knowing your intuition start to guide you where you'll start to go, Oh, I'm starting to see some trends here, wow, this, this particular segment of the market, these types of people, these types of industries, these types of businesses, I'm really being drawn to them, and look for commonalities in that. And you're looking for the marriage between the two, right, and it typically will happen, the reason you're feeling excited and, and pumped up, when you start to read certain things, and you start to do your research is because you have the solution, you know, you're all I can help that person. And so you're looking for trends, and you're starting to figure out what is that 8020 rule in there? Who are those people that I can help? What's the 20% that I actually can help and the 80% that don't quite fit. So we do that by by doing research by reading. And there's great resources online, beginning with Google, Google is your friend. So start by, you know, plugging in a question or problem and see what comes up to start looking at results that are coming up, then go to certain forums like Reddit, and Quora and things like that. There's some great q&a type forums out there and look for questions that people are asking that they're looking for solutions. And it's amazing when you do this, you'll start and you'll find, I think Johnny could verify this because he and I had this chat a couple weeks ago, that you'll be going down and I've done this many times is you'll go down and you'll find somebody's asking exactly the right question. You get all excited. I know Johnny shared one with me about a week ago and said, Holy cow, this person is exactly the person I want to work with. They're asking exactly the question. And you'll find that as you do your work. And then you'll start to take that and then you start to have the conversations based on that you'll look for people that are like that. So why do we get resistance from people, you know, they're too busy, they don't want to talk to us unless we have a solution or whatever. We're basically talking to the wrong people. So think about you know, those people that are posting questions that are looking for solutions, that's again, a lesson in the 8020, where we often spend our time focusing on the 80% that are sitting there like this that don't want to hear anything, and pounding and chasing and pushing, instead of the 20% that are looking for answers. They're putting questions out there. So we could start conversations that way, too. And not be offended by it again, like that learning to love the nose as 10 people, would you be open to have a conversation about this? Nine of them will say no, piss off. I don't want to buy anything. And why don't go? Sure. I'll talk to you about that. And then just talk to them. Ask them questions. And if I can, with your questions, get good at do the homework first. So you see you're asking good questions that then stimulate the conversation that somebody leaves that conversation going. Wow, am I ever glad I talked with you? You know, you really got me thinking. And asking questions is the way to get people thinking not making statements. Yeah. Yeah.
Unknown:Thank you. That was brilliant. Mark.
Mark Kanty:Good. I hope that helps. Yeah. And we'll look forward to talking and you'll probably talk with Jamie first, and then we'll, I'll look forward to talking with you as well.
Jaimie Skultety:And I was gonna say about, oh, no, I'm sorry. Let's sorry. I didn't mean to cut you off. Go ahead.
Unknown:No, I get what you're saying. Thank you for the for the wonderful session and of course answering my question. Appreciate that. You bet.
Jaimie Skultety:And I just wanted to comment on what you mentioned too, about you know, having having something to sell having your program. So we see this as a common kind of mistake, if you will, as people are they go ahead and build out a whole entire program and they don't even know who's going to want it like it's it's cart before the horse We talk about a lot. So don't worry about like, I've got to have something to sell them. That's not That's not your goal at this moment. So
Mark Kanty:yeah, there's an old story about and we need to transition here. But there's an old story about building a better mousetrap, not to do the research and find out if the story is myth or real. But that way back when somebody decided to build a better mousetrap, and they put all their time and effort into creating this amazing mousetrap, and then they went out, and nobody would buy it. And why? Because the little piece of wood with the spring on it was working just fine. And so nobody had a problem. And this is a lot of coaches get this idea in their head that they've got a solution, and then they run around trying to find a problem to fit the solution. Again, it's it's the opposite, spend 80% of your time finding out what problems people are having, drilling into those. So that's saying people don't care how much you know, until they know how much you care. The way you show you care, is by asking your questions, helping uncover those problems that are really stirring deep down inside. Then they're open to a solution. Yeah. And on that we need to we really need to go so we're going to transition to our client only called Larissa. Thank you for joining us today. And Natalie too. I know you're gone. But if you watch the recording, appreciate you being here as a visitor as well, and we'll look forward to talking with you.
Unknown:Thank you for listening to the upscale your business podcast. If you liked this episode, and want to learn more about launching or growing an online coaching business. Be sure to add this podcast to your library. To learn more about how you can get more clients online for your coaching or consulting business visit upscale your business.com