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We use this expression to say that anything is possible. It's common when encouraging someone or talking about your own possibilities.
Written: Yes
Spoken: Yes
Formal: Yes
Informal: Yes
Example 1
So, you've opened a new shop in Bath, and there's one in Bristol. What next?
The sky's the limit. We could have another 20 shops by the end of the year, maybe even more?
Example 2
So, you start as a trainee, then they give you more responsibility. And then?
Well, the sky's the limit. I could be managing a whole region in a couple of years.
That's good.
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