There is an ancient Greek parable that says: "The fox knows many things, but the hedgehog knows one big thing."

In the business world, the vast majority of entrepreneurs are foxes. They are agile thinkers, constantly scanning for the next wind of change. Today it’s AI, tomorrow it’s global expansion, the day after it’s tapping into lower-tier markets. They appear to know everything and be capable of anything, yet they often end up exhausted with mediocre returns.

Conversely, companies that successfully cross the chasm from good to great are often hedgehogs. They may appear slow, but they stare intently at that "one big thing," simplifying complex strategies into a single, core logic.

This is the "Hedgehog Concept" proposed by Jim Collins. To find that "big thing" that belongs to you, you must fundamentally embrace trade-offs. You must find the intersection of the following three circles.

1. What are you deeply passionate about? (What you want to do)​

Collins notes: "The Hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at."

This becomes critical when a company reaches the eight or nine-year mark.

• Beyond Responsibility—The Drive: Many founders survive the early days on a sense of "responsibility," but responsibility isn't inherently fun. Once survival is no longer the primary issue, only genuine "desire" can sustain you for the long haul.
• Don't Build a "Schizophrenic Strategy": I once met an outsourcing agency boss in San Francisco. To earn headcount fees, he spent his days responding to every bizarre customization request from clients (this was his business). Yet, in his dreams, he wanted to build a standardized SaaS product (this was his passion). This misalignment is fatal: Outsourcing relies on "addition" to satisfy specific client needs, while building a product requires "subtraction"—finding the common denominator and refusing customization.

2. What can you be the best in the world at? (What you can do)​

This is the most brutal circle of the Hedgehog Concept, and the most easily misinterpreted.

• Competence $\neq$ World-Class Capability: As I always emphasize, all capabilities are relative. Having a tech team doesn't mean you can build a successful SaaS business. Having a sales team doesn't mean you can dominate field sales.
• The Standard is "Winning the Endgame": True capability is defined by a simple question: When facing the strongest competitor in the industry, can you win? If you cannot enter the top three in your specific niche, you do not possess a "core capability."
• Beware of "Borrowed Capability": Many attempt to "borrow" capability by hiring executives from big tech giants. But as Collins suggests, excellence is built, not bought. These executives are often like the "blind men touching an elephant"—they have seen only a part of the whole. Removed from their original platform (the elephant), their partial skills often fail to replicate success in a new environment.

3. What drives your economic engine? (What is feasible)​

• Value Judgment: This isn't just about where the money is; it's about long-term value. Have you found a logic for sustainable, growing cash flow?
• Dynamic Spiral Ascent: Strategy is not static. You see a small opportunity (feasible), you hone your skills (capable), and as your capabilities grow, you see larger opportunities, which in turn ignite bigger dreams (passion). This is a process of spiral ascent where corporate capability and strategic vision evolve in sync.

Conclusion: Finding the Tiny Intersection

The essence of the Hedgehog Concept lies in "subtraction."

• If you have passion and an economic engine, but cannot be the best in the world, you are merely a mediocre participant who will eventually be eliminated.
• If you are the best in the world and have an economic engine, but lack passion, you are running a money machine. You will likely quit the moment the grind becomes difficult.
• If you have passion and are the best in the world, but lack an economic engine, you have an expensive hobby.

The essence of strategy is not just to be as sharp as a fox, spotting opportunities everywhere, but to be like a hedgehog: when tempted, to decisively curl up and fiercely guard that tiny, unique intersection of the three circles.

That intersection is what you should be doing.