hebel. today · 10 November 20262 / 74
Business · Entrepreneurial Strategy
Scaling by concentrating forces on single bottlenecks
Concentrating on bottlenecks. Eliyahu Goldratt’s Theory of Constraints dictates that strengthening any link other than the weakest fails to increase the chain’s total output. Anyro illustrates this by tracking 10,000 visitors through a software…
From 8 newsletters · 1 min read · one thing to try
Concentrating on bottlenecks. Eliyahu Goldratt’s Theory of Constraints dictates that strengthening any link other than the weakest fails to increase the chain’s total output (Arc X). Anyro illustrates this by tracking 10,000 visitors through a software funnel where 500 sign up, 100 reach a first result, 20 pay, and 15 remain after three months. Improving the sign-up to first-result conversion from 20 percent to 40 percent yields 40 paying customers, whereas doubling total traffic to 20,000 visitors merely doubles the number of people lost at the leak.
Deploying existing assets. Wealthy operators launch new income streams by compounding capital, audience, or operational infrastructure earned from previous ventures (The Big Short). Cory Blumenfeld advises documenting the exact words customers use on calls to build content that AI tools can reference, effectively creating a searchable brand asset (Cory Blumenfeld from Taking My Time Back). Stijn Noorman emphasizes that strategic genius involves evaluating trade-offs between business models, such as selling a service versus a digital product, to select the highest-leverage path (Stijn Noorman from Write to Grow, Stijn Noorman from Write to Grow).
Separating visionary and operational roles. Jay Clouse distinguishes between the Visionary, who generates ideas and closes big deals, and the Integrator, who holds the team accountable and manages the P&L (Creator Science, Creator Science). Companies like Thrive Holdings scale by buying established service firms and using AI to reduce tax preparation time by over 30 percent, leveraging the existing client lists and past work samples of those acquisitions (HOW WE GROW with Ana Calin One weekly…). Sabahudin Murtic automates delivery in his own business by documenting jobs once and checking them every week, moving from manual follow-ups to a system where he approves every output (Unstuck).
Defining procedural boundaries. Anyro suggests writing a standard operating procedure only when a task happens on a regular schedule, involves costly mistakes, or requires consistency across five or more people (Arc X). If a task depends on context, changes often, or requires the expertise of a senior hire, writing principles and examples allows the person to use their judgment instead of following rigid steps.
Try today · 20 min
Identify the primary leak in your customer funnel by calculating conversion percentages between each step.
List your customer's journey in five steps and divide the count of people at each step by the count at the previous one.
You need
- A list of five to six steps a customer takes from initial contact to long-term retention
- Data on the number of people who completed each step in the last month
Steps
- Write down the steps of your funnel in order.
- Count the unique people who reached each step during the last month.
- Calculate the conversion percentage between each consecutive step.
- Compare these percentages to identify the single step with the largest relative drop.
- Draft a plan to improve only that specific step.