Meaning
External resistance slows the progress of a company by introducing costs that are outside the founder’s direct control. Environmental friction includes factors such as regulatory compliance, market saturation, and macro-economic shifts. It measures the energy cost of moving through a specific industry or geography.
This term stops applying in a vacuum where no external forces exist.
Contextual Resistance
Market conditions dictate the ease with which a product can be sold. Environmental friction acts as a drag on the growth rate of the firm. These forces are often invisible until the company attempts to accelerate.
Market Pressure
Competitor actions and customer demands create a dense medium for the business to navigate. When a person calculates environmental friction, they are looking for the causes of unexpected delays. A high level of friction means that every unit of progress requires more input than expected.
The cost is measured in the hours spent on legal hurdles or the price of acquiring a customer in a crowded space. By identifying the source of the drag, the person can choose a path of less resistance. This analysis helps in selecting the right market for a new product.
Friction levels can vary widely between different jurisdictions.
External Drag
Resistance from the world outside the company limits the maximum speed of the operation. Within environmental friction, the focus is on the forces that the person cannot change. This drag is a constant factor in the planning process.
