Restriction Sweet Spot
A framework for determining how much to restrict resources (budget, headcount, scope) based on the biological caloric restriction curve.
A framework for determining how much to restrict resources (budget, headcount, scope) based on the biological caloric restriction curve. The optimal range is 20-30% restriction - enough stress to trigger beneficial adaptation without causing collapse.
When to Use Restriction Sweet Spot
Use when deciding how much to cut during budget planning, headcount decisions, or resource allocation. Particularly relevant during fundraising (determining burn rate), downturns (cutting costs), or strategic planning (setting growth targets).
How to Apply
Calculate Maximum Capacity
Determine how many people you could hire, how much you could spend, at maximum sustainable rate.
Questions to Ask
- What's your total available capital?
- What's the market rate for your stage?
- How many people could you productively employ?
Apply 20-30% Restriction
Hire 20-30% fewer people than maximum, spend 20-30% less than you could. This activates organizational autophagy without causing starvation.
Questions to Ask
- Are you hiring 20-30% fewer than you could?
- Is your burn rate 20-30% below what capital allows?
Monitor Adaptation
Track whether restriction is producing efficiency (good) or burnout (bad). Healthy restriction forces prioritization; starvation causes collapse.
Questions to Ask
- Is the team becoming more efficient?
- Are people stressed or burned out?
- Is shipping velocity maintained?
Adjust Based on Response
If burnout appears, reduce restriction to 10-20%. If waste persists, increase to 30-40%. Never exceed 50% restriction except in true emergencies.
Questions to Ask
- Are failure indicators appearing?
- Is there still visible waste to cut?
- What's the team's capacity for additional restriction?