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Local Maxima vs Global Maxima Business Philosophy

Reusability

A business philosophy that most plateaus or stuck points are temporary saddle points rather than true limits, because businesses have multiple dimensions (product, team, market, pricing) that create many paths forward.

How It Works

Unlike climbing a simple hill where you can get trapped on a small peak, business has many moving parts that create multiple directions to explore. When growth stalls, there's almost always another dimension to optimize.

Components

1

Identify which dimension of business is constraining growth

2

Map out adjacent dimensions you could optimize (team, product, market, pricing, strategy)

3

Test small experiments in new dimensions

4

Recognize that most stuck points are saddle points with upward paths

5

Avoid assuming current plateau is the maximum possible

When to Use

When your business growth has plateaued or you feel stuck at a certain level and need perspective on potential paths forward.

When Not to Use

When facing fundamental market destruction, regulatory shutdown, or core product obsolescence where no optimization can help.

Anti-Patterns to Avoid

Accepting first plateau as the limitOnly optimizing in one dimensionGiving up when hitting resistanceUsing the concept to avoid acknowledging real problems

Example

A SaaS company hits $1M ARR and growth stalls. Instead of assuming that's their limit, they explore new dimensions: enterprise sales, new verticals, partnership channels, or premium tiers - finding multiple paths to $10M ARR.