What makes the difference in being a profitable professional horseman rather than another in the herd of "wannabees"?
- A huge trust fund
- Unique horse handling skill
- A generous sugar daddy
- questionable ethics
Perhaps you chose some or all of the above.
I choose none.
Instead, I’d point out the observation of Vilfredo Pareto; a mathematician who was never in the horse business, as the key to the factor that makes the difference in success.
Pareto is the originator of the 80/20 rule, known as the Pareto Principle.
He observed that 80% of the wealth in Italy was controlled by 20 % of the population. Since then, the 80/20 rule has been applied to many business disciplines.
In an organization, 80% of sales are made by just 20% of the sales force.
Think about car sales and real estate salespeople you know. Certain names are known by everyone in town.
If you study your activities for the day, 80% of your time is spent on trivia and 20% is devoted to "the crucially important stuff".
Of the services (lessons, boarding, training, breeding…) and products (horses…) you sell, more than likely 80% of your profit comes from 20% of the total products and services you offer.
So what makes a few professional horsemen profitable and most in the "less than profitable" category?
Choosing to be profitable, choosing to be successful and choosing to be a member of the 20% club is the common thread among successful pros. Once you make the choice, you will begin the path to profit.
It won’t be easy.
But, success will be closer once you begin to do the things that matter most to your business.
That is, focus on the things that contribute most to profit, not overall sales.