Identifying True Constraints in Business

The theory of constraints emphasizes the need to identify the primary factors that hinder growth within a business system. It is common for entrepreneurs to mistakenly identify the wrong constraint, which leads to misdirected efforts and wasted resources. For example, during a coaching session, a student believed that her business's slowdown in leads was due to a lack of Google reviews, but this was not substantiated by data. The focus should instead be on gathering relevant metrics to accurately determine the constraint, as improvements should only be made when there is reliable data to measure progress.