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80/20 Principle

"80% of your income/sales result from 20% of your costs"


"80% of your income/sales result from 20% of your acts"

GOALS
Find inefficiencies and eliminate them, find
strengths, and multiply them. 80% of your
coaching revenue is from 20% of your activities.
The 40% Less Audit is designed to help you
identify these activities and optimize via
outsourcing, elimination or technology

The core objective is to ascertain your


revenue-generating activities as well as your
non-revenue-generating activities. Your
revenue-generating activities connote your
Income Generators.
Once done, we ascertain your biggest
expenses, which connote your expense
generators.
Afterwards, we optimize.
Lower Costs Framework
"80% of your income/sales result from 20% of your costs"

"80% of your income/sales result from 20% of your acts"

STEPS
The first step is to tabulate all
activities
Define your rev-gen activities by
analyzing each activity, marking its
impact on revenue between 1 - 5
Assess non-revenue-generating
activities
Prioritize revenue-generating activities
via optimization
Optimize non-generating activities
Assess the top 20% expense
generators on a separate list then
optimize
Activity Audit
"80% of your income/sales result from 20% of your costs"
What are your daily activities and how do they impact
your revenue?

Date
All Activities Impact on Revenue
3 2
5 connotes high impact
1 connotes no impact 5 4 1
Rev-Gen Activities
"80% of your income/sales result from 20% of your costs"
The aim here is to identify your income generators - places
of core focus in your business
Date
Revenue-Gen Activities 20% Activities = 80% Revenue
What are your Revenue- Ave. costs in USD per
generating activities (High-yield) Month

Add to To-Do List


Optimization
"80% of your income/sales result from 20% of your costs"
The optimization model chosen must cost less and
deliver more value per activity
Income Generators

Technology &
Delegation Outsourcing
Software
Non-Rev-Gen Activities
"80% of your income/sales result from 20% of your costs"
The aim here is to identify areas you're throwing away money

Date
Non-Revenue-Gen Activities 80% Activities = 20% Revenue
What are your Non-Revenue- Ave. costs in USD per
Generating activities (Low-yield) Month

Add to Not-To-Do List


Optimization
"80% of your income/sales result from 20% of your costs"
The optimization model chosen must cost less and
deliver more value per activity
Non-Income Generators

Technology &
Elimination Outsourcing
Software

Delegation
Expense Generators
"80% of your income/sales result from 20% of your costs"
What are your top 5 expenses (20% biggest costs) that
account for 80% of total monthly expenses

Top Expense Generators


The Great Cancellation
"80% of your income/sales result from 20% of your costs"
Eliminate or optimize every of your top 5 biggest expenses
that aren't part of top 5 income generators

Top 7 Income Generators Top 7 Expense Generators

Technology &
Elimination Outsourcing
Software

Delegation

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