Cognitive Biases
On April 1, 2016, I was excited and full of optimism. After months of negotiation, we were about to sign a purchase agreement to sell our company. Although I had mentally braced myself for the buyer saying the deal was off in an attempt at an April fool’s joke, we closed the deal that day. Three yea
Most of the time we believe what we hear. And too often we hear—and then believe—things that are not true. But imagine how hard it would be to question every fact and underlying assumption you hear or read throughout the day.
Our interpretations of the world can often be wrong due to bias, optimism, pessimism, or bad information. Yet most of us think we are right and other people are wrong. This can cause us to overlook or dismiss crucial information and lead to bad decisions.
Black-and-white thinking distorts your ability to see reality objectively. Jumping to conclusions too quickly when making important decisions does not serve you well. The stakes are high because your decisions will play a large part in determining whether you succeed or fail.
Mental models help startup founders avoid bias and blind spots, thus making decisions less risky. A mental model is an idea that helps you better understand the reality of the world around you. They provide shortcuts to higher-level thinking by forcing your brain to think about a problem or decision
Every problem we face — including war, crime, climate change, and income inequality — can be traced to decisions made by an individual or group of individuals. A company’s success or failure is the result of decisions. Decisions you make about school, career, health, and relationships have massive i