petbiz podcast episode 123

New Mastering Business Diversification: The 70-20-10 Rule for Pet BusinessesBlog Post

PetBiz Podcast
May 08, 2025•3 min read

Mastering Business Diversification: The 70-20-10 Rule for Pet Businesses

A focused fool can accomplish more than a distracted genius – Alex Hermozi

Have you ever wondered how to keep your pet business afloat during tough economic times? Or maybe you just want to ensure it thrives regardless of the market climate. Today, we're diving into the art of diversification and how you can strategically manage your business using the 70-20-10 Rule. This insightful approach will help you focus your resources effectively and adapt to changing market demands.

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The Inspiration Behind the Episode

In a recent conversation I encountered on Facebook, it became clear that the pet industry is buzzing with ideas on diversification, especially during times of economic uncertainty. One particular discussion centered on starting a pet waste removal service—a concept met with both enthusiasm and skepticism. It reminded me of the dynamic decisions pet business owners must make to remain relevant and successful.

Diversification: A Personal Journey

Since launching my first pet business in 1997, I've experienced multiple economic cycles. Each downturn nudged me to explore new ideas and strategies, what I fondly call "shiny object syndrome." It's the urge to try new things—sometimes at the cost of diluting your core offerings. My journey taught me the importance of focusing on what truly matters for sustained growth.

Introducing the 70-20-10 Rule

Credit for this strategic framework goes to Alex Hermozi at acquisition.com, but a version of it is widely used by leading businesses like Google and Apple as they consider innovation. The rule advocates a thoughtful allocation of your time, effort, and resources:

70%: Concentrate this portion on strengthening your core services. Optimize what works and ensure you're the best in your field. For a pet business, this could mean being the go-to pet sitter or dog walker with outstanding reviews and customer loyalty.

20%: Dedicate this segment to exploring improvements and adjacent services. Think about enhancements that don't drastically change your business model but can add value. Offer premium pet care packages or establish a stellar referral program.

10%: Reserve this for bold, new ideas—the innovations that could redefine your market position. Whether it's starting a pet taxi service or a luxury cat boarding facility, this is your space to dream and experiment.

How to Apply the 70-20-10 Rule in Your Pet Business

Reflect on your current operations. Have you maximized your core offerings? Are there adjacent services you could seamlessly integrate? What big, bold ideas have piqued your interest lately? Here's your homework: 1. List your services and categorize them into 70, 20, and 10 buckets based on the rule. 2. Choose one aspect of your 70% that could improve and focus on enhancing it. 3. Identify a complimentary service for your 20% that could spruce up your offerings without straying too far from your expertise. 4. Let your imagination run wild for your 10%. What groundbreaking idea could set you apart?

Conclusion: Embrace Opportunities with Confidence

Remember, even if you're picking up poop, you could be managing a seven-figure business if you excel at what you do. Finding opportunity in unexpected places is the hallmark of a savvy entrepreneur. So, don't let anyone dismiss your potential to innovate and profit in the pet industry. If you have thoughts or suggestions on topics you'd like me to explore or people in the pet industry you admire, please reach out. What's your next best move?

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With over 30 years in the pet industry, Janie Budnick is a seasoned expert and a 7-figure business owner. She has owned and operated multiple successful pet businesses and is passionately dedicated to the industry's growth through collaboration and community. Deeply concerned for the integrity of the pet industry, Janie serves on the marketing committee for the Professional Animal Care Certification Council, holding both her CPACO and CPACP certifications. As the founder of PetBiz University, she helps pet business owners bridge the gap between their current status and their aspirations, offering education, resources, and community support to achieve sustainable growth without overwhelm. She also founded PetBizCRM, the industry's first integrated relationship and marketing automation solution designed specifically for pet business owners by pet business owners. Janie's vision is a united industry that enhances the lives of pets and their people.

Janie Budnick

With over 30 years in the pet industry, Janie Budnick is a seasoned expert and a 7-figure business owner. She has owned and operated multiple successful pet businesses and is passionately dedicated to the industry's growth through collaboration and community. Deeply concerned for the integrity of the pet industry, Janie serves on the marketing committee for the Professional Animal Care Certification Council, holding both her CPACO and CPACP certifications. As the founder of PetBiz University, she helps pet business owners bridge the gap between their current status and their aspirations, offering education, resources, and community support to achieve sustainable growth without overwhelm. She also founded PetBizCRM, the industry's first integrated relationship and marketing automation solution designed specifically for pet business owners by pet business owners. Janie's vision is a united industry that enhances the lives of pets and their people.

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