Making Money

The Revenue Bottleneck: Finding What’s Actually Limiting Growth

19 min read

Every business has a constraint that limits revenue growth. This constraint is the bottleneck. Everything flows through it, and the capacity of the bottleneck determines the capacity of the entire system. You can optimize every other element of your business to perfection, but if the bottleneck remains unchanged, overall performance stays flat. This is why most optimization efforts fail. Entrepreneurs work frantically improving conversion rates, enhancing products, expanding teams, and refining processes without identifying which element actually constrains growth. They optimize the wrong things and wonder why results do not improve. The theory of constraints, developed by Eliyahu Goldratt, provides...

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