But how do we know that the limit point has arrived? It's too late to speak with financial data, so we must judge whether the limit point has arrived when the business shows signs. What is the criterion for judging the limit point?
We can see whether we have reached the limit point from the strategic dimension and management dimension:
1. Customer: Is there any customer bonus, such as expanding the growth of new customers through innovation?
2. regional end: can you sink or go abroad, or go somewhere else?
3. Product end: can the main products be optimized and the supporting products be developed and sold?
4. Management dimension: Has this industry reached its limit, or is it because of the low spiritual efficiency of our internal organization that the growth has slowed down?
Teacher Liu Run talked about the rigid boundary of the system from four dimensions, namely, the ceiling, or walking around the wall, or stretching time and space.
1, market size. Different industries have different scales, such as offline restaurants, which will be limited by space; Pay special attention to the fact that there are other players in the market besides you, and the strength of competitors determines the difficulty for you to "reach" the largest market scale; Once you are close to your largest accessible market, don't fight, change your position.
2. Resource constraints. Resource-based entrepreneurial resources are your advantage and your "rigid constraint". Because the resources you can master, no matter how big or small, can quickly reach the limit. The time of entrepreneurs who rely on their personal abilities is a "rigid constraint". Strong ability to reach the "boundary wall" quickly, the price increase can not solve the "rigid constraint" problem of the consulting industry, but will only delay it. Relying on non-renewable resources such as land resources, rare mineral resources and someone's unique skills to start a business, the rigid border wall is not far away. What shall we do? Try to build your business model on high-speed renewable resources. Such as knowledge, technology and patented technology.
3. Regulations and policies. Many small companies are not standardized from the beginning, such as not paying social security to employees, and they are restricted immediately after they grow up. These little tricks they played when they were young are useless when they grow up. Operate in compliance as soon as possible, otherwise the company will never grow up.
4. Technical constraints. The development of every technology will meet the limit.
These "rigid constraints" will set the limits of your growth. This is the "boundary wall" of the system. Because of "path dependence", you will naturally launch a general attack on "rigid constraints". However, bypassing and breaking through this "steel south wall" may be the right way.
Thinking after class:
Some people say that the total resources and ecological environment are really "rigid constraints" for global economic development. Do you agree? If so, how should humans break through their own "boundary wall"?
Thinking about solutions:
I don't quite agree.
1. The total resources and ecological environment are dynamically increasing or decreasing, and the technology is also developing. Great progress will be made in the development of new energy, the reuse of resources, the improvement of environmental awareness and the reconstruction of ecosystems. Normally, it should not be a rigid constraint unless the life of the earth is up.
2. Enterprises should overlook the different stages of enterprise development life cycle, technology adoption lifecycle, product life cycle and user life cycle from the perspective of God, make strategic decisions, innovate constantly, bypass these ceilings and develop horizontally.