This is a rerun of episode 164 of the podcast, but it’s never been more applicable. Making good decisions in emotional times, scary times, times, when you’re in a fragile state, is necessary as an entrepreneur and critical to your success.
Lately, I can’t help but think about how much has changed and how much I’ve changed my mind. People that are not open to changing their minds, that are not absorbing new information, are going to get hit hard in life. In his book Principles, famed investor Ray Dalio talks about radical open-mindedness and developing a mindset to guide through making better decisions. Radical open-mindedness is the search for truth and nothing else–it’s constantly being open to changing your mind and searching for new information without looking for confirmation bias. We have a predisposition to confirmation bias in every decision we make in life, but we need to learn to avoid it and be open to
Most people think that they know more than they do. At the start of 2020 when Mark Cuban was encouraging all entrepreneurs to take out unsecured small business loans, I swore that this was a crazy idea. One week later, the government announced that they’ll be supporting these loans and they won’t be personally guaranteed, and I immediately recognized how overconfident I had been in my reaction.
Emotions play a role in our decision making too. Anger, fear, panic, excitement, and greed will drastically hinder your ability to make good decisions. Acting on emotions will lead you to ignore data and make decisions against your better judgment. Trying to make unemotional, unbiased decisions is a key to success. Take a step back, make unemotional decisions, and focus on controlling what you can control.
I’m not a genius, most people aren’t geniuses, even though we like to think we are. But you don’t need to be a genius to create wealth, start a business, and find success. Make good decisions and know about your wheelhouse, know about what you do well and can contribute, and you’ll be able to carve out your piece of the pie.
Three Main Takeaways
- To be successful, you need to be open to changing your mind and accepting new information
- Emotion clouds your judgement; focus on making unemotional, unbiased decisions
- You don’t need to be a genius to be successful, find your wheelhouse and hone in on it
Watch the video here: https://youtu.be/OLvy9E-HQnw
Check the show notes here: https://sweatystartup.com/the-sweaty-startup/
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