Speaking of Biases…

“Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so.” – Douglas Adams

Just food for thought…

Losing entrepreneurs have these biases; they are key reasons why open, and disciplined, minds win:

– Confirmatory Bias

Confirmatory bias is the tendency to give greater weighting to information that supports our pet theories and beliefs, while minimizing disconfirming information. People have a natural tendency to filter information in a way that favors their preferred views. Many a failed business venture can be linked with the way in which the proprietor neglected unsupportive information about prospects and overly inflated data favoring the venture.

– Causality Bias

Causality bias is the natural human tendency to view the world as an organized, patterned environment where everything occurs for a reason. This perceptual quality is often extended into areas where such principles do not apply. The best example of this is gambling. Gamblers are very good at perceiving patterns and cause-effect relationships where there are no such processes operating. This bias can result in misjudgment of risks and the development of flawed spending & investment strategies.

– Group Think Bias

Group think bias is where individuals in an organization overvalue particular ideas and decisions because of peer support. For example, a CEO may have a particular view and staff eager to facilitate career advancement may distort their own evaluation of the proposal to fit in with what they perceive the boss expects.

As long as the competition falls prey to these biases, there will be opportunities on which to capitalize.

Hope it helps to keep these ideas in mind – best wishes on the next start-up, folks!

The ideas above were taken from several sources, and cannot be claimed solely as my own.

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