THE LEAN 1-2-3 NEWSLETTER

The $143 that changed aviation forever (and what it means for your startup)

Hi there -

Here is this week’s “1 principle, 2 strategies, and 3 actionable tactics” for running lean…

1 Universal Principle

Your startup’s biggest constraint is actually your secret weapon.

Picture this: It’s 1971, and you’re the president of Southwest Airlines with only $143 left in your bank account—barely enough to pay one employee for a day.

Most companies facing this constraint would either accept defeat or frantically try to raise emergency funding.

Southwest chose a third option that transformed them from near-bankruptcy to the most profitable airline in their industry.

They leveraged their constraint.

When Southwest was forced to sell one of its four planes, it asked a different question: “How do we keep our existing routes with three planes instead of four without raising money?”

This forced breakthrough thinking.

They discovered their real bottleneck wasn’t the number of planes—it was the 60 minutes planes sat idle between flights. By eliminating assigned seating and cutting turnaround time to 10 minutes, they solved their constraint and created a competitive advantage.

The irony? By embracing their limitations rather than fighting them, they laid the foundation for massive success.

2 Underlying Strategies at Play

I. Use propelling questions to force innovation.

Most founders try to eliminate constraints by getting more resources. But constraints force creativity.

The formula is: “How do I achieve [my goal] without acquiring more of [a specific limiting resource]?”

This eliminates obvious answers, such as lowering goals or acquiring more resources, forcing you to innovate through constraints instead of around them.

The best breakthroughs come from working within limitations, not despite them.

II. Multiply your constraints strategically.

Southwest didn’t stop at solving its immediate problem. They leaned into more constraints: single aircraft type (Boeing 737s only), no assigned seating, no meals, point-to-point routes only.

Each additional constraint made them more efficient and created deeper competitive moats. Instead of apologizing for limitations, they celebrated them as features: “the only short haul, low fare, high frequency, point-to-point carrier.”

Your constraints aren’t roadblocks—they’re forcing functions for breakthrough innovation.

3 Actionable Tactics

I. Identify your real bottleneck.

List what you think you need more of (time, money, people, customers). Then ask: what’s the underlying process that’s actually constraining your progress?

Southwest thought they needed more planes but discovered gate turnaround time was the real constraint.

II. Craft your propelling question.

Write: “How do I achieve [specific goal] without more [your biggest constraint]?”

For early-stage founders, try: “How do I get traction without more time, people, or money?” This shifts focus from building perfect products to validating what customers actually want.

III. Turn constraints into positioning.

Instead of apologizing for limitations, celebrate them as intentional choices that serve your customers better.

"The essence of strategy is knowing what not to do."
- Michael Porter

What could your constraints become when framed as features?

  • Limited resources might mean faster decisions.
  • A small team might mean more personal service.
  • Single focus might mean deeper expertise.

That’s all for today. See you next week.

Ash
Author of ​​Running Lean​​ and creator of ​​Lean Canvas​

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P.S. This week's video:

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P.P.S.

Whenever you're ready, there are 2 ways I can help you:

1 - Shortcut your startup with my free Just Start email course

2 - Take my 30-day Business Model Design Challenge

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