The 80/20 Rule of Outsourcing: Focus on What Actually Moves the Needle in Your Business

I want to share with you a practical concept that I use in every area of my life—the 80/20 rule, or the Pareto Principle, as it’s known.

It’s all about finding the 20% of effort that delivers 80% of the results. And believe me, everything in life is about moving the needle in the most efficient way possible.

This applies to all areas of life, not just business.

For me, it might include improving my Spanish, learning the piano, or advancing in martial arts.

The key to making rapid progress in any of these areas is to focus on the activities that move the needle the most. It’s about identifying what delivers the biggest improvements in the shortest amount of time and then doubling down on that.

The same approach works wonders in business.

The 80/20 Rule in Business: Focus on Impact

In business, it’s all about maximizing your impact. For example, let’s say you have 10 hours to spare. Would spending those 10 hours on a blog post be worth the same as dedicating those hours to putting together, testing, and tweaking an ad campaign? For most businesses, the ad campaign has much bigger upsides and can move the needle a hell of a lot more.

So, how does this tie into outsourcing and building remote teams? Simple—focus on the positions that will give you the biggest bang for your buck. You don’t need to outsource everything at once, but you should start by identifying the roles that will have the most significant impact on your bottom line.

A Real-World Example: Moving the Needle with Customer Support

I’ll give you a real example of a business using VirtualStaff.ph. They started on our enterprise solution with a handful of customer support staff. The reason? They had customer support employees in the USA, and by adding customer support staff in the Philippines instead of hiring more in the USA, they immediately moved the needle of profitability—big time.

The savings were massive, and they got an immediate benefit.

From there, they started looking at other areas where they could outsource to the Philippines.

But the key takeaway here is that they started with the position that had the biggest potential to move the needle quickly. And it worked—profitability improved almost instantly.

Start with the Roles That Matter Most

When you’re thinking about outsourcing or building your remote team, start by identifying the roles that will deliver the most immediate and impactful results. This could be customer support, marketing, or any role where you can make a significant improvement quickly.

By outsourcing high-impact roles, you can free up your internal team to focus on growth activities, or you can simply lower your costs while maintaining quality. It’s about working smarter, not harder.

If you’re looking to start with a role that can move the needle, customer support is a great area to explore. You can find out more about what is outsourced customer support and how it can benefit your business.

The Power of Building a Remote Team in the Philippines

I’ve seen firsthand how businesses can massively improve profitability by building affordable and skilled teams in the Philippines.

But, of course, it’s essential to do it right. You need to make sure you’re compliant with local laws and regulations, which can seem daunting if you’re new to outsourcing.

The good news is, we’ve got you covered.

If you’re not sure how to build your team compliantly in the Philippines, I’ve put together a guide on how to make sure you compliantly build your team in the Philippines. It’s a must-read if you’re serious about scaling your business the right way.

Final Thoughts: Move the Needle, Every Time

At the end of the day, everything comes down to focusing on the activities and roles that will move the needle the most. Whether it’s in your personal life or your business, the key to rapid progress is identifying what makes the biggest difference and zeroing in on that.

In business, that means starting with roles that have the potential for the most significant impact, like customer support or other operational roles. Once you see the results, you can then expand and outsource additional positions to maximize efficiency and profit.

Remember, the 80/20 rule applies everywhere. Find the 20% of activities that bring in 80% of the results, and make those your priority.

That’s all for this week’s Secrets of a Virtual Boss newsletter. If you found this valuable, make sure to share it with your friends, and if you have any questions or topics you’d like me to cover next, just let me know!

Until next time, keep moving the needle.

Best, Michael