Sixteen is my favorite number.

Now there is a reason for it to be yours as well in the form of a relatively new booklet "16x: Real Simple Innovation for 16 Times Better Results" by Richard Koch, author of "The 80/20 Principle."

You have likely heard of the 80/20 Principle -- simply stated, 80% of the results come from 20% of the inputs.  Or to say it another way, the majority of results come from a minority of inputs.

For smaller businesses, your sales will likely trend toward 80% of revenue from 20% of customers. At a minimum, your "A" clients probably comprise over 50% of your sales. And the majority of your 'A' clients probably come from one or two marketing strategies or lead sources.

What does this have to do with 16x?

The 16x math takes the 80/20 multiplication a step further for incredible power. Without space to go into detail here, let's look at an 80% sales/20% clients situation. 

Assuming the effort to create and serve each client is the same, your "payback" from energy allocated to each of the top clients is actually 16 times what it is
from the small clients.

Please stay with me here.  Assuming this is true for you, it opens up a new world of opportunity.

Let's say you take advantage of existing marketing and sales time, or free up a little bit of time by cutting out a less productive or non-productive activity. 

Then, instead of focusing energy on incrementally adding new clients, where 4 of 5 will not be "A" (or your "16x" clients), you make a profound shift.  Your new "16x" mindset asks, 'How can I double by number of "A" clients over time?'  Or your question may be, 'How can I get one new "16x" client per month?"

For some businesses this means, perhaps, going from 100 active clients to 120, but by concentrating on adding on 80/20 (or your "16x" relationships), you could virtually double your profit with very little additional effort to service this client base. (Your numbers will be different but you get the idea.)

That's the power of 16x.   How do you go about it?

Koch identifies the five practices that you can adapt to your practice and your life.

5 Practices of 16x

I.  Focus, Focus, Focus

Koch finds that most people try to do too much. As a result they have cluttered business lives and spend time responding to the urgent while ignoring the important.

For example, many small businesses come to us and tell us that they have far too few new prospects and clients coming in the door.  When we ask this group how much focus or concentration they are putting into this issue, the answer is most often, "Very little."

II. Defy the Tyranny of Routine

Most people are prisoners of routine, assumptions, and a small view of the world. Koch's point is that 16x innovators rebel against routine, and give themselves time to think about how the 80/20 principle applies to their lives.

For example, track how you are spending your time in a given week.

Then ask the question, "How could I be spending my time to get better results/reach my goals/create an entirely new life?"

III. Do It Your Way

Koch's point here is "Most people are conformists, they are afraid to stand out, afraid to be themselves. Meanwhile 16x Innovators do it 'their way, "relentlessly seeking ever greater opportunities to deploy their signature strengths."

Their world and business center on what they value and think is critical.

IV. Recruit the Support of Potent Allies

"Most people rely too much on themselves, foregoing great advantages they could readily have by enlisting the support of others."

For example, you may be trying to get 1 referral from 10 partner firms and spending too much of your time managing those relationships. Create deeper alliances or co-marketing with 2 and aim for 10 clients from those two relationships per year.  

Promising potential allies include your "A" or top clients who can lead you to others like them, businesses that have Your Ideal Clients as customers, or people of influence in your community.

V. Recycle the World's Best Ideas

"Most people believe that new ideas have to be totally original. But 16x innovators use great ideas from the past and present to fuel their innovations."

For example, we monitor the best marketing ideas out there for all businesses.  We relentlessly pursue the breakthrough strategies others are calling on to build their own business.

With each of our clients, we try to understand, for instance, what are the one or two key strategies that have helped them be successful and how they can be nurtured and multiplied?

Finally, Koch's call to action is get outside your normal routine and way of thinking. Take a fresh look. Make sure you are aiming at the right target.

Koch's Three Powerful Questions

1. What things truly count?
2. What works the very best?
3. What brings me the greatest joy and sense of fulfillment?

We especially like the last question because your answers can quickly create a life that's much more fun.

We invite you to ask these questions of your life and business and share any insights you gain this year.

We invite you to contact Bob to help put marketing strategies like these in place