Last night’s meeting had more new faces, with attendees of different backgrounds and experiences, eager to freely share ideas and learn form each other.
This month’s first discussion topic started provocatively: “Most of the words I speak in the next 5 minutes will be trivial and can be ignored (but which parts?)”
The World is wildly non-linear, grossly unfair, rampantly imbalanced. There is no equilibrium.
There is always an inbuilt imbalance between cause/result, input/output, effort/reward.
The majority of causes, inputs and efforts have little impact on results, outputs and rewards, BUT a small minority have major, dominant impact.
This is the idea of the “vital few” versus the “trivial many”, also known as Achieving More from Less, the 80/20 Principle, or the Pareto 80/20 rule.
• 80% of energy/water/materials consumed by less than 20% of the population
• 80% of health care/police resources used by less than 20% of population
• 80% of the world’s wealth held by less than 20% of the population
• Often the imbalance is more than 80/20, but the key is that there is always an imbalance
In property-related terms, analysis would show e.g. 80% of problems are caused by 20% of tenants (or properties).
But it’s not just about trawling through spreadsheets to identify those few: we need to be selective, not exhaustive; to be able to filter out background noise; to be able to see the wood for the trees.
Applying 80/20 Thinking means to find the short-cuts, play to your strengths; aim for excellence in few areas, not just to be satisfactory in many. Focus your efforts where it counts the most.
The most successful people, whether artists, musicians, actors, inventors or landlords, are outstanding at playing to, and focussing on improving those strengths. The most valuable businesses in the World likewise focus their resources on excellence in their core areas. This “success mindset” brings more success.
With the right mindset, it is inevitable that the Rich will only get richer, no matter their starting point.
Epiphany moment: if this is inevitable, and if it “only” takes the right mindset, then anyone can get richer. So the hard part must be in getting the right mindset, right?
A good start is by meeting with like-minded people to share the energy, and get those creative juices flowing. The next Hatfield Property Network Meeting is set for Tuesday 14 June 2016 (2nd Tuesday of the month).