Startup Decision Making Part 2

In part 1, I briefly touched on the importance of decision making in startup and the importance to not only be accurate but also fast. And most of the time, we would not be able to obtain all the information we need to get ourselves perfectly informed before making a decision.

The truth is there is no perfect framework that one can just strictly follow in the process of decision making. In the Greylock podcast, Reid highlighted a few of his advices for entrepreneur in the process of making decision. I have summarized the key points below.

Decision Making Takeaway

1. Measure ONLY what matters to your focus
2. Business intelligence/theory is not a natural law, it will change according to time, location, and business nature
3. Avoid common pitfalls such as confirmation or sunk cost bias
4. Consider whether this could be a Type 1 (false positive) or Type 2 (false negative) situation
5. Combine different source of data, even the even the unconventional ones
6. Bonus: If time allows, work backwards to first principle (This is a note from myself)