Conservative entrepreneurial bias

Conservative bias is a dangerous bias for an entrepreneur, given that can complicate or slow down our ability to pursue ideas or take risky or innovative decisions (which are the basis of our company)... and which on top of that often goes hand in hand with the sunk cost fallacy. (SEE TIP).

Conservative bias assumes that we tend to give more weight and believe previous information or knowledge than new knowledge that disproves old knowledge.... something that has impact in many respectsfrom our ability to adapt quickly and use new information, even indoctrination.

The effect is that if, for example, we discover information that disproves one of our beliefs and implies that it does not work in the business, instead of making a U-turn we tend to make a much softer turn (not least because of the sunk cost it represents).

And of course, given that a startup is a company in search of its business model, any bias that slows down our ability to pivot or adapt quickly is something that can shorten the life of it significantly.... and therefore, We must be vigilant and open to making relevant changes if the data support it.

After the question and before think of you

You can also consult other Related TIPs.

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