The hedgehog concept is based on three circles, all of the same size and all equally important. Those three circles intersect in the middle, and this is the place where you should aim.
The first circle in hedgehog concept involves what you can be the best at. This is not meant to be a goal, or strategy, an intention or a plan. It is a clear statement of fact, developed by honestly looking which area you can shine. It is just as important to define the areas in which you are lacking skills.
This is not necessarily related to your abilities in a given area. You may be very good at math, but that does not mean that you can be the best person in the world at math, even with great effort. Keep in mind that what you could be the best at may also be something you are not doing right now. Before there were computers, how did Bill Gates know that he was the best in the world?
The second circle asks what is driving your economic engine. Discover the single denominator which gives you profits while allowing you to pursue your passion.
In the third circle, you discover what your are deeply passionate about. Ask yourself this question: if you are making all the money you could need, and you were doing this job, would you still come to work? When you can say to yourself. “I am the luckiest person on earth right now. I was made for this job!”, you truly have it made.
The most important thing is in the middle, at the intersection of these three circles. If you could live your life in that place, you will have it made. You will be doing something that works with your core competency, something you can be the very best in the world at. You are deeply passionate about your work and can not believe you are getting paid for this. That passion and joy drives your economic engine.
You wan to be right in the center of the hedgehog concept. It is no good having two out of three… you want it all! If you are passionate about what you are doing and good at it, but there is no money to be made, you are going to be very frustrated. If you are good at what you do and you are making lots of money, but you hate your job, it is not worth it. If there is money to be made in an industry that you are passionate about, but you are not any good at it, that can be frustrating too. So we want to stay in the intersection of these three circles.
Of course, that will mean research on your part. Look for you hedgehog concept, while seeking the intersection of those three circles. Everything that you do should lead you towards the intersection. When it happens, you will find that this guides not only your business choices, but your life choices as well.