5 Mental models every founder should look into while getting started.
We are all aware of Darwin’s theory of evolution- how men evolved from apes and how two different species can procreate another one of a kind. Let’s try and apply the same theory here on business too. Can we say that business too evolves? If it does, what is the base along which is grows? The better the evolution, the latest the product.
Imagine you bought a new music system and you are not much of a techie. Now what you will do is you will resort to the manual given in order to understand the basics and install the system. Oh is the language used too complicated for you to understand as a layman? Don’t blame yourself. It’s a fault at the company’s end.
Would you want to sell such a product in the market which is not user friendly? I am sure not.
What do we do then, to overcome all the barriers and create a seamless relationship with our clients? Work on the product from the user’s point of view.
In order to achieve that level, you need to create a latticework of mental models.
Latticework is an interlacing of strips of wood or a metal. It creates a criss cross pattern where every strip is interconnected with each other, forming a network. In the situation described above, you would require such a network of mental models in order to combat any obstruction you face in your business.
Mental Models on the other hand are like mind maps which you create in order to know how to go about a certain situation in life. They help you think in the correct direction and find a way out. They offer a framework and provide a vision to look at life from a different perspective. Charlie Munger stated that one should have a collection of mental models in order to be able to make sense of the world around oneself. Once you have a set of mental models ready, you are well prepared to face the challenges. The more mental models you have, the more solutions you have to a particular problem. So in case Plan A didn’t work, you still have B, C, D and E at your disposal. You can also use a combination of two or three plans together. So the same problem can be looked at with multiple perspectives.
I have some 5 very effective mental models curated here for you as an entrepreneur.
1. Schlep Blindness
(Made by Paul Graham)
Reluctance, ambiguity, apprehensiveness are just a few synonyms of doubt that you will feel during your start up. Yes, it is true that starting up a business is not a cake walk but it is no rocket science either. This model of Schlep Blindness will help you prevent going the negative side and enjoy the sail when the tides are against you. Potential and way of carrying out a particular function by a particular person is different. So, if some idea was a flop for one person, it might just turn out to be a blockbuster according to how you perceive and go about it.
2. Product Market Fit
(Made by Marc Andreessen)
Before releasing the product out in the world, it is crucial for you, as a founder, to see if the product has a market. This is basic economics. Where there is demand, there is supply and they grow proportionately (in most of the cases at least). You can only teach a 4th grader what similes and metaphors are. The moment you start talking about how Gulliver’s Travels is a satire on the English politics, it will be a bouncer and the child would give you looks like “Why are you doing this to me mother of Satan?”
3. Confirmation Bias
(Made by Thucydides)
When you approach someone with your startup idea, don’t be offended at the criticism you get. Of course it’s your baby and you’ve worked hard to finally start off with it, given up on a lot ofmdreams in order to establish this one. But still be welcoming towards what analysis others have to make because we humans have a tendency to overlook the shortcomings of what we are very possessive about. Go by what the facts have to state in your case
4. 100 People Love
These days facebook has a feature of showing different emotions on a particular post apart from just liking (a remarkable feature by the way!). We get a 100 likes and about 25 love notifications on your profile picture and we are most interested in looking at who ‘loved’ the post because that gives us more satisfaction and bliss. Similarly when you are a market player, it is important to know how many people love you. A loyal audience is the best achievement a product can get. Prefer quality over quantity. It is always better to have less but true admirers in order to spread good word about your company and also to give you trustworthy feedback.
5. Regret Minimisation Framework
(Made by Jeff Bezos)
Now this framework makes you look at the bigger picture. You will be able to visualise yourself with your start up 3 years down the line and when you give your current situation a glance, you would want to leave your job and pounce at your dream business. If you fail, you can always undo it but if you never try it, the regret is going to be much much stronger than the heartbreak at your failure.
When Bezos was thinking about building Amazon, he had to decide whether to start the company or keep his good job on Wall Street. He created a framework to use for making the decision that he calls a Regret Minimisation Framework. It helped him realise he didn’t want to not do it and regret it later. This fear of regret is one of the key reasons why he decided to go ahead and start Amazon.
It is always advisable to not stick to one mental model. It is quite possible that you have used a particular set so much that you have mastered every dimension of it but it might just lead to a bumpy ride if you try to apply it everywhere. Play around with the idea, use several models or a combination of models and because it will not only improve your efficiency in solving a problem but also introduce you to new models for future.
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