How Small Business Owners Can Reduce Stress
Being a small business owner can feel overwhelming. You’re constantly juggling responsibilities, family, goals, business, friends and health. All of which are important but if its overwhelming managing all of these - some become forgotten or neglected.
But what if you could find the small percentage of activities that actually matter and let go of the rest?
Enter the 80/20 rule… also known as the Pareto principle. If you don’t want to read ahead and would rather listen to someone talk about it, listen to our episode on the Business Abundance Podcast…. Does Working Harder Make You Better at Your Job?
What Is the 80/20 Rule?
The Pareto principle states that 80% of results come from 20% of efforts. It was first observed by Italian economist Vilfredo Pareto who noticed that 80% of Italy’s land was owned by 20% of the population. Over time, this principle has been applied to aspects of life and business.
For small business owners, the 80/20 rule might look like this:
80% of revenue comes from 20% of customers.
80% of problems stem from 20% of challenges.
80% of stress comes from 20% of tasks or issues.
The key is to identify the 20% that matters most and focus your time and energy there.
Why Small Business Owners Feel Overwhelmed
Running a small business often means wearing multiple hats—boss, salesperson, marketer, customer service representative, and everything in-between. The constant multitasking can leave you feeling stretched too thin.
Much of this stress comes from trying to manage everything, even tasks that don’t significantly impact your business. The 80/20 rule offers a way to step back, prioritise effectively, and regain control.
How to Apply the 80/20 Rule in Your Business
1. Identify the 20% That Drives Results
Start by analysing your business to pinpoint what truly moves the needle. Ask yourself:
Which 20% of tasks drive 80% of my revenue?
Which clients generate the most profit?
Which products or services make the most impact?
For example, you might find that a handful of loyal customers account for the majority of your sales or that a specific marketing channel brings in most of your leads. You can use tools like revenue reports, time-tracking apps, or customer feedback to uncover these patterns.
2. Cut or Delegate the 80% That Doesn’t Matter
Once you’ve identified the high-impact 20%, it’s time to eliminate, automate, or outsource the rest. Delegating low-value tasks like data entry, admin work, or social media scheduling can free up your time for more strategic activities.
You can make a list of tasks that drain your energy but don’t significantly contribute to your goals. Consider outsourcing these tasks or investing in tools to automate them.
3. Focus on High-Impact Activities
Redirect the time and energy you save toward activities that yield the greatest results. For many small business owners, this could mean:
Building relationships with top clients.
Developing new products or services.
Streamlining operations.
By concentrating on your strengths and areas where you add the most value, you’ll see better results without working harder.
4. Manage Stress Using the 80/20 Rule
The 80/20 rule can also help reduce stress by identifying the small percentage of issues causing most of your anxiety.
Focus on the recurring challenges: Are there systems or processes you can improve to address these problems?
Say no to unnecessary commitments: Let go of clients, projects, or tasks that drain your energy without offering a significant return.
Each week, reflect on what caused you the most stress and brainstorm ways to minimise or get rid of these issues.
Less Stress, More Success
The 80/20 rule isn’t just about working smarter—it’s about reclaiming your time and reducing the overwhelm of running a business. By focusing on the 20% of activities that drive results, you can achieve more with less effort and stress.
As a small business owner, your time is your most valuable resource. Use the 80/20 rule to ensure you’re spending it on the things that truly matter.
