Business Planning

The 40 40 20 Rule

What is the 40 40 20 rule?

As you start your business, you’ll want to approach your (ad)venture with a structured method. Our 40/40/20 Rule will help you allocate your time productively. Following our approach will help you get the most value out of your time so that you can start your business as effectively as possible!

How do I use the 40 40 20 rule in my business?

We recommend that you spend

  • 40% of your time Improving your business idea

  • 40% of your time Selling your offering

  • 20% of your time getting customer Feedback

Take time to improve your business, think creatively and critically about what makes your product or service unique! Consider the problems you are solving for and why customers should pay for what you are offering.

Always be closing (well, for 40% of the time)! This is time for you to grow your business by expanding and improving your marketing and sales channel. Spend this time actively pursuing leads and reaching out to potential customers and partners.

Following our Lean approach, the best way to start a business is to test your ideas quickly and methodically so that you can get constant feedback. Talk to your customers early and regularly and make sure you document their feedback to develop and fine tune your business strategy.

Why is the 40 40 20 rule important?

Entrepreneurship IS an iterative process, so never stop learning and developing. The 40 40 20 rule will help you allocate your time so you can be more productive and efficient with your (limited) time.

Pro Tip

The 40 40 20 rule is a guideline that can help you develop great time management skills for your business and for all aspects of your life.