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Hedgehog Concept – The Three Circles
The hedgehog concept is based on three circles, all of the same size and all of equal importance. These three circles intersect in the middle, and this is where you need to aim.
The first circle in the hedgehog concept implies what you can be the best at. It is not a goal, a strategy, an intention or a plan. It’s a clear statement of fact, developed by honestly looking at where you can shine. It is equally important to define the areas in which you lack skills.
It’s not necessarily related to your abilities in any given area. You may be very good at math, but that doesn’t mean you can be the best person in the world at math, even with a lot of effort. Keep in mind that what you might be best at may also be something you’re not doing right now. Before there were computers, how did Bill Gates know he was the best in the world?
The second circle asks what drives your economic engine. Discover the single denominator that brings you profits while allowing you to pursue your passion.
In the third circle, you discover what excites you deeply. Ask yourself this question: if you made all the money you could possibly need and did this job, would you still come to work? When you can tell yourself. “I’m the luckiest person on earth right now. I was made for this job!”, you really did.
The most important is in the middle, at the intersection of these three circles. If you could live your life here, you would have. You’ll be doing something that works with your core skill, something you can be the best in the world at. You are deeply passionate about your work and can’t believe you get paid for it. This passion and this joy drive your economic engine.
You want to be at the center of the hedgehog concept. It’s not good to have two out of three… you want it all! If you are passionate about what you do and good at it, but there is no money to be made, you are going to be very frustrated. If you’re good at what you do and make a lot of money, but you hate your job, it’s not worth it. If there’s money to be made in an industry you’re passionate about, but you’re not good at it, that can also be frustrating. So we want to stay at the intersection of these three circles.
Of course, that will mean some research on your part. Look for your hedgehog concept, while looking for the intersection of these three circles. Everything you do should lead you to the intersection. When this happens, you will find that it guides not only your business choices, but also your life choices.
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