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Proven & unavoidable mental models that create ultimate impacts on business success!

  • Posted July 17, 2018

It is crucial to know and decide our business models even before thinking of a start-up, but have you heard about mental models? Mental models stimulate a systematic way of thinking, interpreting, and processing a solution to your problems.

As entrepreneurs, we often think of taking risks but in a systematic defensive way that can possibly end in a risk-optimistic situation, facilitating positive impacts to our present situation. In other words, an entrepreneur is smart enough to select a business venture that suits his/her personality, stand unique in the competition, and to monetize profits, while proactively or defensively solving the problems that stand against the goal.

This smartness can differ entrepreneur to entrepreneur, completely depending on the personal, social, and situational factors. However, as an entrepreneur, you should be able to use the following mental models in various situations;

Regret Minimization Mental Framework

This framework suggests that an entrepreneur should be able to take tough decisions that can possibly solve a big dilemma. For an example, it will be still difficult for an entrepreneur to take a solid decision to quit a full-time job in order to pursue an entrepreneurial career that he or she dreamt for the last ten years.

Such a decision can be troublesome in the present situation but it can create a long time benefit of a passionate career with a decent income. Regret Minimization Framework suggests that an entrepreneur should be able to take such bold, difficult, and yet life-changing decisions.

After working in architecture, furniture and design for 15 years, I came up with an idea that led me into the NYC world of technology and dating with Cheekd, a newly launched hyper speed Bluetooth mobile dating app. However, I had to sacrifice a lot for my idea. I sold nearly $75,000 worth of my designer clothes at consignment shops and on eBay, doing focus groups, secret shopping, app testing, dog walking, and house sitting. I rented out my West Village Studio in NYC on AirBnB while I couch surfed for 14 months, nearly got evicted and ultimately lost my lease of 5 years to my gorgeous apartment’, Lori Cheek, Founder of Cheekd.

Jobs to be done

This framework suggests an entrepreneur to exactly know why a customer may prefer to buy from him/her. It is an essential step to study the customers in the following basis;

  • Why a customer will buy from you or what situation will create a need to buy from you?
  • What can be the exact motivation to select you instead of your competitors?
  • What is the expectation of the outcome?

Minimum Viable Product

This is a technique to test all your business assumptions to ensure if there is an actual need for it. It requires a little experiment of the product with a fewer people who may be in your potential target market to run your pilot study of your assumptions.

Confirmation Bias

As human beings, we tend to notice things that conform to our beliefs. It is very dangerous that we may avoid aspects that don’t conform to our beliefs, which can be the actual facts. An entrepreneur with an already designed product will always want to believe that there is a need for it, while refusing on all negative opinions, which can possibly result in a potential market failure. So, confirmation bias should be avoided!

Apart from the mental frameworks discussed above, there is a mental technique that is proved to create massive impacts on the business goals.

Visualization is a technique where an entrepreneur should envision the potential business outcomes. As opposed to day dreaming, this short envisioning technique is proved to create scientific impacts on the business achievement by channelling the subconscious towards the goals.

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About the author: Mathangie is an avid blogger and the founder of NORO Solutions, a Business Solutions brand online. She holds MBA from Cardiff Metropolitan University and BA (Hons) degree from Staffordshire University. 

To consult Mathangie on Business Models, Business Strategy & Marketing Strategy, email her via mathangie@norosolutions.com. 

 

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