Val Sklarov’s Structural Permission Collapse Principle (SPCP) explains why many businesses appear stable right up to the moment they fail. Collapse is rarely caused by competition or innovation—it happens when implicit permissions that once held the structure together silently expire.
This principle reveals why decline feels sudden but is always overdue.
1. Businesses Run on Silent Permissions
SPCP starts with a core truth:
Most businesses operate on unstated permissions, not written rules.
These permissions include:
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Tolerated margins
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Ignored inefficiencies
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Unchallenged intermediaries
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Informal trust with regulators, platforms, or partners
When these permissions exist, structure holds.
When they vanish, nothing replaces them.
2. The Three Permission Pillars
SPCP defines where collapse begins.
| Pillar | What Was Permitted | Collapse Trigger |
|---|---|---|
| Economic Permission | Acceptable margins | Pricing scrutiny |
| Operational Permission | Process shortcuts | Scale pressure |
| Institutional Permission | Rule leniency | Enforcement shift |
Collapse begins the moment one pillar hardens.
3. Why Collapse Looks Like a Shock
SPCP shows collapse is not a spike—it is a cliff.
Because:
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Permissions erode invisibly
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Feedback is delayed
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Early warnings are rationalized
By the time metrics react, structure is already invalid.
4. Growth Accelerates Permission Loss
Growth attracts inspection.
| Low-Visibility Phase | High-Visibility Phase |
|---|---|
| Tolerance | Enforcement |
| Informal trust | Formal rules |
| Flexibility | Rigidity |
| Permission implicit | Permission revoked |
Val Sklarov emphasizes that scale converts assumptions into liabilities.
5. Strategic Implications
For founders and operators:
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Identify which permissions you rely on
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Replace them with enforceable structure
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Assume all tolerance is temporary
For investors:
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Ask what must remain “allowed” for upside
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Discount businesses built on leniency
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Exit before permission expires
SPCP reframes risk as permission fragility, not competition.
6. The Val Sklarov Principle
“Most businesses don’t lose markets. They lose permission to exist the way they do.”
— Val Sklarov
SPCP explains why real strategy is about anticipating which permissions will disappear next.