I wrote previously about constraints and how you can take advantage of them. But how can you isolate and exploit a constraint?
First of all, identify your constraint.
Here are some possible constraints:
- You have very little time to work on your business.
- Your production capacity is limited.
- Your store has limited floor space.
Next, find a way to measure your constraint.
- Hours per week;
- Number of units you can produce;
- Square footage of your store.
Now think about your business in terms of your constraint. There are two primary strategies:
Open up your constraint. Find ways to grow so that this constraint no longer hurts you.
- Quit another job so you have more hours available per week.
- Buy another machine so that you can produce more units.
- Rent more space.
- Hire an assistant or find ways to work more efficiently.
- Raise the price of your limited production units.
- Squeeze more inventory into your tiny store or eliminate less popular (or less profitable) products to make more room for the most popular and profitable products.
[Image: Never Ending (2/365) by Burtoo, on Flickr]