Seth Godin on Local Max
Published November 9th, 2005 edit replace rm!
Seth has a fantastic article about Understanding Local Max that should probably be read by all small entrepreneurs.
I is about how you put effort into something and you reach a point where the effort pays off, but eventually starts decreasing. His point is that when you reach what he calls the local max, which is that initial peak and it starts going down hill it really hurts. You should however keep fighting because as points out it will start increasing again and this time by much more. Read the article.
I suppose one way of applying it to someone like myself is that I put the effort in while I had my 9 to 5 after a while there is a limit to what I could do with the amount of effort I had to give so I quit my 9 to 5 and I’m somewhere in the bottom around point C now. Doing something like that is scary for many people, but as Seth points out you have to face C bravely and you will come through.
One point that I think Seth probably meant, but isn’t mentioned specifically is that at some point your Big Max will become the next Local Max and you have to keep at it. Also the Local Max will some times by itself start a downwards trend and you will have to reach for point C.
Famous in recent years Point C’s was Microsofts Internet attack in 1995 (and Live in 2005) and Apple’s (OSX in 2000 and Intel in 2005). Good leaders have to make the often unpopular choice of going to point C.
