Collin's "Hedgehog Concept"

[loop101]

I was curious what others thought of Jim Collin's "Hedgehog Concept". This concept is usually viewed as a Venn diagram showing the overlap between 3 circles titled:

"What are you deeply passionate about?"
"What can you be the best in the world at?"
"What drives your economic engine?"

The point being (if I understand it correctly), you should pursue business opportunities that you care about, you can be the best at, and can make you money.

My personal feelings are:

The Hedgehog Concept might help to greatly reduce the number of business ideas that you can then apply the TMF 's CENTS to.

When I first heard about this concept, I thought it was just the "follow your passion and the money will follow" mantra, but after further reflection I think the "economic engine" implies you've validated there actually is a market. Maybe the "economic engine" could imply all of CENTS, in an optimal case.

The definition of "be the best" could probably be redefined as "having a USP", or perhaps as defined in the "Toilet Paper Entrepreneur" as being the best at either cost, quality, or convenience.

When I apply these filters:
What areas am I passionate enough about to spend all my free time working on?
In which of those could I create a product/service that was "the best"?
And of those which abide by CENTS?

I arrive at a shockingly few, but very manageable, number of prospects.

 

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[Aidan]

"What are you deeply passionate about?"
"What can you be the best in the world at?"
"What drives your economic engine?"

The market does not care about me or you. It cares about the needs of others.

The problem with the Hedgehog Concept, is that it is limiting to both personal and business growth. Instead of diving into new business territory, and exploring unknown land, you are stuck on the small island of me throwing butter knives at a dartboard. Will the butterknife stick in the dart board? Possibly, but it's extremely unlikely that the business venture will target a true need, and one that will be profitable to sustain a decent business. Could you hit a bullseye with a butterknife? Extremely unlikely.

There are tens of thousands (if not, many more) needs that need filled. Find a need in demand that you can solve, and also will enjoy working on (secondary). Solve this need and "be the best" out of all your competitors. Bring your creative edge to the table, not only solving the need, but going beyond.

If we look at ourselves before the market, we already lose.

"What are you deeply passionate about?"

Music Production, but 7.125 Billion people do not care about that.

"What can you be the best in the world at?"

Anything, if you put your mind to it, and are physically/mentally able to achieve set goal.

"What drives your economic engine?"

I would like to learn about all industries and business. Why limit your education?

 

[codo3500]

I used to neglect this, and say that it doesn't matter what I'm passionate about (because truly the market does not care).

But I unfortunately am not one of those people that can work 7 days a week and pull late-night sessions every single day on a business that I'm not passionate about. And while some people can get passionate about anything that makes money - I can't, and I've tried, and I was moderately successful - but nowhere near where I am now from doing what I actually care about.

 

[Aidan]

There's a difference between locating/targeting a need, passionately filling it, and targeting things you are passionate about before finding a need.

One targets your own passion first, while the other targets needs of others first.

No doubt there are businesses ventures you could be passionate about, but how will you ever find out about them if you're not willing to dive into anything new?

How will you know you don't like your vegetables if you don't eat them?

If what you're passionate about is in a field with enough need to sustain a business, then that's great. I just find that train of thought very limiting to the many opportunities out there.

 

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