The 100-Unit Rule
Total energy (resources) equals exactly 100 units.
Total energy (resources) equals exactly 100 units. Survival + Growth + Profitability cannot exceed 100%. Biology enforces this constraint absolutely - organisms that violate it die. Markets enforce it eventually - companies that violate it collapse. Trade-offs are mandatory: allocating 80 units to growth leaves only 20 units for survival + profitability combined.
When to Use The 100-Unit Rule
Use as constraint check on any resource allocation decision. Apply when planning budgets, evaluating growth investments, or stress-testing strategy. Essential diagnostic when burn rate seems unsustainable or when multiple priorities compete for resources.
How to Apply
Calculate Current Allocation
Map all expenses to Survival, Growth, or Profitability buckets
Questions to Ask
- What percentage goes to keeping lights on?
- What percentage goes to future growth?
- What percentage is retained/returned?
Outputs
- Current allocation percentages
Check Total Constraint
Verify total allocation ≤ 100%. If >100%, identify source of unsustainable funding (debt, dilution beyond reasonable levels)
Questions to Ask
- Does total exceed 100%?
- What's funding the excess?
- How long can excess allocation continue?
Identify Forced Trade-offs
Determine what must be sacrificed to fund priorities. Accept that maximizing all three simultaneously is impossible.
Questions to Ask
- What are we willing to cut?
- What's the minimum survival allocation?
- Can we accept zero profitability temporarily?
Plan Reallocation
Create specific plan to shift allocation when environment or priorities change
Outputs
- Reallocation triggers
- Cut priorities
- Timeline for shifts