The Hedgehog Concept: What's your business's ONE thing it does better than anyone?
The Hedgehog Concept: What's your business's ONE thing it does better than anyone?
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Hey friends,
You’ve got goals. You’ve probably got a to-do list a mile long. There’s always so much to do, so many opportunities. But how many of those things are the RIGHT things, the ones that will truly move the needle? Sometimes, focus is our biggest superpower.
Today, let’s dive into a concept that changed how I look at business and life: The Hedgehog Concept. Inspired by the brilliant business thinker Jim Collins (his book “Good to Great” is a must-read), it’s all about finding that ONE thing that makes you exceptional.
The Hedgehog’s Secret
The name comes from an ancient Greek parable. The fox knows many strategies, it’s wily and clever. The hedgehog knows one BIG thing — how to roll into a ball of spikes. The fox circles and circles, trying to get at the hedgehog, but comes up empty-handed every time.
The lesson? If we figure out what we’re uniquely suited to do and do THAT better than anyone else, we become (almost) unstoppable. Sounds simple, right? It’s surprisingly hard.
The Hedgehog Concept boils down to answering three key questions:
Passion: What fires you up? What do you naturally LOVE doing?
Best in the World: Forget about just being good — what could you become the absolute BEST at?
Economic Engine: What actually makes money and drives your business?
Where these three circles intersect, that’s your Hedgehog Concept.
Let’s get real: Why does this matter?
Picture this: You’re scattered, chasing every shiny new idea. You’re spreading yourself thin. You’re getting decent results, but you’re also burning out and maybe feeling like you’re never TRULY breaking through.
Now imagine the opposite: You have crystal clarity on your ONE thing. You ruthlessly prioritize that, saying no to everything else. Results multiply because all that energy is focused.
Think of it like sunlight. Just warm rays spread out all over won’t start a fire. But concentrate those same rays through a magnifying glass? Things get exciting quickly.
Alright, enough theory. Let’s tackle this step by step…
Step 1: Deep Dive on Passion
Okay, let’s be honest — sometimes we think we’re passionate about something (money? status?) only to find it doesn’t give us that deep joy long-term. So, digging deeper is essential. Here are a few exercises:
The Childhood Test: Remember those hours you’d lose track of, totally absorbed? Making stuff? Building? Organizing? Connecting with people? There’s usually a clue there.
The Boredom Test: Flip it around! What are those tasks that drain your soul even if they make money? There’s likely a lesson there about what NOT to focus on.
The Energy Audit: Where does your energy naturally FLOW? Notice what fires you up, what makes your eyes light up when you’re in your zone.
A Note on Passion: It’s not always butterflies and rainbows. It might involve hard work you genuinely ENJOY. Sometimes grit plays a bigger role than we think.
Step 2: What Could You Be The Best At?
This isn’t about ego, it’s about honest assessment and ambition. Here’s what to consider:
Skills & Talents: What comes naturally? Think beyond the obvious. Some people are innately gifted at pattern recognition, building relationships, storytelling, etc.
Knowledge & Niche Expertise: Are you obsessed with a particular industry, technology, or problem? That specialized knowledge can be a HUGE differentiator.
Unique Worldview: How you see the world is an asset. Do you have a perspective on how things fit together that others don’t? Lean into that.
Caveat: “Best” is relative. Start with “Best in my town, my network, my market segment”. Realistically, you’re not becoming the best heart surgeon in the WORLD overnight. But could you be the best in your specific space?
Step 3: Does It Pay The Bills?
This is the reality check. Sadly, we can’t all be full-time puppy snugglers. Your Hedgehog has to make money or sustain itself somehow. This is where it gets specific to your business model:
Products: Can you create something significantly BETTER, cheaper, or more uniquely suited to a specific audience than the competition?
Services: Do you offer a superior skillset, speed, or personalized experience that commands higher prices?
Business Model: Even with a standard product/service, can you innovate how you package, distribute, or market it that creates a unique economic advantage?
Quick Tip: Don’t try and force all three circles to fit perfectly right away. Start with what you CAN control — your passion and developing your potential for being world-class. Sometimes the economic piece becomes clear as you go.
Hedgehogs in the Wild
Let’s make this concrete. Here are a few examples of Hedgehog Concepts in action:
Southwest Airlines: They’re not the fanciest, don’t fly everywhere, but their Hedgehog is short-haul, low-cost, friendly service. That clarity shaped everything they did, leading to huge success.
Nucor: A steel company that sounds boring, right? Their Hedgehog was building mini-mills (vs giant traditional ones) and an insanely performance-focused pay structure. It made them an industry disruptor.
Vanguard: Not flashy, but obsessed with low-cost index funds for the average investor. That specialization built an investment empire.
Notice: Their Hedgehogs aren’t just mission statements. They guided every major decision about what to do AND what NOT to do.
Putting Your Hedgehog Together
This isn’t a one-and-done exercise. It’s a process. Here’s how to get started:
Brain Dump: Grab pen and paper or a blank doc. Set a timer, and write down EVERYTHING related to those three circles — passions, possible “bests”, economic ideas. Be messy!
Look for Overlap: Are there themes? Connections you wouldn’t have noticed otherwise? Don’t worry if it’s rough, there might just be a nugget in there.
Seek Feedback: Don’t do this alone! Talk to those who know you well. They might see brilliance in you that you’re blind to.
Iterate: Your Hedgehog may not be crystal clear overnight. That’s okay. Test ideas! Run small experiments. Refine as you learn more.
Final Thoughts:
The Hedgehog Concept is deceptively powerful. It sounds simple but takes courage to truly embrace. Our world rewards multi-talented generalists, but fortunes are made by focused specialists.
Remember: it’s as much about what you say NO to as what you say yes to.
Are you ready to shed some of the ‘fox’ and discover your inner Hedgehog? Let me know your thoughts or questions!
P.S. If you loved this concept, I highly recommend digging deeper into “Good to Great” by Jim Collins. It’s packed with insights like this.
Until next time,
Scott