What do you do if biases are clouding your entrepreneurial decision-making?

If you run a tech startup, your biggest and most impactful bias will be the "Own Technology Bias" - OTB as I call it. Let me explain: After spending money, time and love on tech you develop, it is most difficult to drop it if a cheaper and/or better solution comes along. That however is exactly what often needs to be done to remain competitive. In the early days of Worldsensing, we worked on IEEE 802.15.4e TSCH for IoT multihop connectivity. Despite having invested heavily, when Sigfox and Lora came along, I took the hard decision to use those rather than the legacy tech. Competitors using .15.4e are gone, Worldsensing is not (also because of the incredible CEO Ignasi Vilajosana).

If biases are clouding your entrepreneurial decision-making, it's essential to identify and acknowledge them to make more objective choices. One common bias is confirmation bias, where you seek information that confirms your existing beliefs while ignoring contradictory evidence. For example, if you're convinced that a particular marketing strategy will succeed, you might only focus on data supporting this belief while disregarding warning signs indicating its ineffectiveness. By recognizing this bias, you can consciously seek out diverse perspectives and consider alternative viewpoints to make more informed decisions.

We have over 170 biases - ignore anyone that tells you to work on them. They're too numerous and difficult to conquer because, most of our decisions are made by the unconscious mind. Therefore, I suggest you counter biases through systems and processes. This means: 1) Build a team of diverse thinkers who challenge you. 2) Aim to disprove your assumptions through thorough experimentation. Thankfully, this approach is well understood and practised everyday by a bunch of people called scientists. Embrace doubt, rely on process and respect their outcomes. Accept entrepreneurial spirit is a blessing (people will follow you) and a curse (if you build it they probably won't come).

Recognize and Acknowledge Biases: The first step is to recognize that biases exist and acknowledge their influence on your decision-making process. Be honest with yourself about the potential biases you may have.Seek Diverse Perspectives: Surround yourself with diverse voices and perspectives to challenge your assumptions and biases. Consult with mentors, advisors, and team members from different backgrounds to gain alternative viewpoints.Use Data and Evidence: Base your decisions on data, evidence, and objective analysis rather than solely relying on intuition or gut feelings. Collect relevant information and conduct thorough research to inform your choices.

Quando os vieses est?o atrapalhando suas decis?es empresariais, é essencial pausar e reavaliar. Primeiro, reconhe?a os vieses potenciais, como o viés de confirma??o ou o efeito de ancoragem. Em seguida, busque diferentes perspectivas e dados objetivos para fundamentar suas decis?es. Lembre-se sempre de manter a mente aberta e estar disposto a ajustar seu curso conforme necessário. A objetividade é a chave para tomar decis?es empresariais sólidas e bem informadas.

I often got challenged by my ideas and hypotheses for my businesses. Now, after failures, I have a habit to always seek advice from my advisors - always grateful for my advisors and their advice. Having advisors is the most effective method to clear out the biases, and more importantly, control your "over-confidence." Entrepreneurs are animals of passions and confidence -- and there's nothing wrong about it. However, you often need brakes. Advisors are there to help you. Try to have a diverse network of advisors or mentors with different backgrounds.

One of the most effective strategies I've employed is bringing diverse viewpoints to the table. It's akin to consulting with a team of experts from different fields before making a crucial legal strategy decision. This diversity challenges my preconceptions and exposes me to new ways of thinking, helping mitigate the risk of biased decision-making.

Data and evidence is not the holy grail. For example, surveys, interviews and data said the super successful retailer Tesco, should launch in the US. They did and they failed, costing $1.6bn. In reality, most new businesses are launched with a hidden hunch which when successful, we post-rationalise with data and research. Getting data and conducting experiments is often time consuming and expensive, entrepreneurs have little time and even less money. It's not that entrepreneurs don't know what to do rather, they don't know in what order to do it. Get your sequencing right and the path forward becomes far easier.

Besides testing assumptions, fostering a culture of open dialogue where team members can challenge ideas helps uncover blind spots. Additionally, seeking diverse perspectives and soliciting feedback from mentors or advisors can provide valuable insights. Continuously refining decision-making processes ensures adaptability and fosters innovation.

Every entrepreneur makes assumptions, but the key is to test them rigorously. It's similar to the due diligence process in legal work. Before I commit to a decision, I ask, "What evidence supports this assumption? Can it be validated?" This approach ensures that my decisions are data-driven rather than bias-led.

Critical thinking is my go-to tool, As an entrepreneur. It involves not just accepting information at face value but analysing it, questioning its validity, and considering its relevance. By applying a critical lens to every decision, I can sift through biases and base my actions on solid, logical reasoning.

To think critically about my plan, I recommend using a big whiteboard. I have two massive whiteboards in my office, where I draw diagrams and scenarios of where my plan can go well and wrong. With no distractions from social media and emails, I can really focus on my critical thinking. Think about the worst case scenario, and see how you can solve it.

Finally, reflecting on past decisions has been invaluable. This retrospective analysis helps me identify when and how biases might have influenced outcomes. By understanding these patterns, I can adjust my decision-making process to be more objective in the future.

Entrepreneurs should admire not copy successful businesses. To explain: Some time ago successful businesses such as, Google found something they're good at (search) and now focus on that one thing. They're in optimisation mode. The entrepreneur has yet to find one thing they're good at and therefore, they're in discovery mode. As a result, the skills and attitude necessary for an entrepreneur are very different to the successful business employee. Had I known this years ago I wouldn't have paid a website designer a small fortune to copy McLaren Formula 1's website design for a cleaning company I started...

Everyone is biased and everyone has their perspective. to avoid Myopia an informal advisory board can be your mirror and clearly see where YOU go wrong. It serves a purpose in itself to have someone who can reflect from a distance, with less emotion and tells you as it is.