In 1984, Dr. Eliyahu Goldratt, a physicist and then business manager, created one of the most powerful frameworks for improving your business.
It was called the Theory of Constraints.
Originally published in his book “The Goal,” the Theory of Constraints holds that every business has one constraint, or bottleneck, that prevents it from achieving its goals.
Source: Synchrono
Focusing on everything else is irrelevant. The only way to improve your business is to address and fix the constraint.
What’s your constraint?
The first step to implementing The Theory of Constraints is to identify the main bottleneck holding back your business.
Common constraints:
1/ No one knows you exist. The main constraint is traffic and getting more people to see your business.
2/ You are getting traffic, but no one is buying. The main constraint is improving your conversion.
3/ You get sales, but your growth is stalling. The main constraint is not being good enough at marketing or not knowing how to hire someone good to do your marketing.
4/ You are getting a lot of sales but can’t deliver consistent quality. The main constraint is your systems.
You likely have an idea of what your main constraint is.
And if you don’t, you need to track what’s working and ask yourself, “If I focused on only one thing this month, what would make the biggest impact?”
The more specific you get about the constraint, the easier it will be to fix it.
Eliminate the constraint
There are three steps to eliminating the constraint.
1/ Exploit. Do everything to get the most output without spending additional resources.
Basically, you are maxing out what you already have to improve the constraint.
Example: If your bottleneck is email conversions, you don’t need to build a whole funnel right away.
Instead, max out the conversions on email by rewriting the call-to-actions, testing new subject lines, and writing better product descriptions.
2/ Subordinate. Make everything else in the business focused on fixing the constraint.
Subordination calls for ruthless prioritization.
Every part of your business and to-do list should be focused on solving the constraint.
3/ Elevate. If it’s still broken after steps 1 and 2, invest additional resources.
If none of the above works, spend money, hire help, or use new tools.
What you should avoid:
❌ Trying to eliminate the constraint for a long time by yourself, and not using extra resources
Or, on the flip side:
❌ Spending money fast without trying to eliminate the constraint by yourself
Elevating might look like:
☑️ Trying a new social media channel after months of slow traffic.
☑️ Buying a course or coaching to learn a skill.
☑️ Hiring a freelance website designer to increase conversions.
REPEAT and fix the next constraint
Once you fix the bottleneck, the system will speed up, and the next bottleneck will show.
The Theory of Constraints is constantly fixing the next constraint in your business.
Repeat this and your business will improve every time.
What I’m Building
It’s called Reddit Deconstructed.
I’ve spent the last three months researching, compiling, and writing this product.
It’s for entrepreneurs who want to get paying customers, even if they have no marketing budget or existing audience.
Here’s a sneak peek at one of the playbooks.
A small group of readers will get early access and a price that won’t be available at the general launch.
Until next week,
- Warren
PS: I will be sending out an email to a select, small group of subscribers about the pre-release. It’s based on engagement and not everyone will be selected.
If you want to ensure early access to Reddit Deconstructed, reply “Reddit” to this email and I’ll make sure to include you in the email.