For years, I’ve been using a method to explore and understand new business-related topics in the ever-evolving world of small businesses. It wasn’t until recently that I discovered this approach had a name: the Feynman Technique. Whenever I encountered an interesting principle in a business book or article, one that I felt could deepen my knowledge and improve my ability to advise my small business clients, I would write a blog post about it. Writing wasn’t just a way of sharing information; it was a deliberate exercise in thinking through an idea so thoroughly that I could explain it with total clarity.
The act of writing or teaching forces your brain to organize and articulate what you know. In doing so, it exposes any weak points in your understanding. As I wrote about a new topic or a topic that was not well covered, I would often stumble over a detail or contradict myself, realizing that my grasp of the concept wasn’t as solid as I thought. These moments of uncertainty were invaluable; they drove me to go deeper, seek additional sources, and refine my understanding until I could confidently explain the topic in the simplest terms. Each time I went through this process, I didn’t just improve my ability to communicate; I transformed my own comprehension and ability to recall that information when I needed it most, such as during a mentoring session.
The Feynman Technique, named after the brilliant physicist Richard Feynman, is deceptively simple: if you can’t explain something clearly, you don’t truly understand it. By breaking down a concept into its simplest terms—imagine explaining it to someone with no prior knowledge—you force yourself to confront your own gaps in understanding. Maybe you get stuck on a key detail or rely on jargon without fully grasping its meaning. These are signs that you need to go back, dig deeper, and clarify your own thinking.
This technique isn’t just an academic exercise; it’s a practical, hands-on approach to mastering knowledge. Think about the last time you tried to explain your pricing model, your marketing strategy, or your cash flow to someone unfamiliar with your industry. Did your explanation flow effortlessly, or did you struggle to connect the dots? When you truly understand something, you don’t just memorize facts; you grasp the underlying logic, making it second nature to explain.
This approach has fundamentally shaped the way I advise my clients. Let’s take cash flow management as an example. Instead of using financial jargon, I often use a simple analogy: cash flow is like a bathtub, with water flowing in from the faucet (revenue) and running out through the drain (expenses). If more water drains than comes in, you have a cash flow problem. If this is the case, to resolve cash flow issues, you either need more water coming in or less water draining out. This analogy makes the concept immediately accessible, and that’s the power of the Feynman Technique in action.
What makes the Feynman Technique so powerful is that it applies to every industry and learning process. Scientists use it to test their understanding of theories. Teachers use it to make complex topics digestible for students. Business leaders use it to refine their strategies and communicate more effectively.
Bill Gates has famously applied this technique to his learning process. Despite not completing college, he built a tech empire by continuously refining his understanding of software, business strategy, and leadership through simple and direct explanations. Elon Musk has used a similar approach, breaking down engineering and business problems using first principles thinking to fully understand them before implementing solutions.
Educational studies reinforce the effectiveness of this technique. Researchers have found that medical students who practice explaining procedures in simple terms to hypothetical patients retain information more effectively and perform better in practical applications. In business, leaders who can articulate their company vision simply are often the most successful in aligning their teams and achieving their goals.
Imagine a business owner trying to explain their service model to a potential customer. At first, they may use industry jargon and an overly complicated explanation, only to see the customer become confused or disengaged. By applying the Feynman Technique, they take a step back, break it down into the simplest terms, and reframe their explanation in a way that’s instantly clear. Not only does this improve their pitch, but it also helps them identify inefficiencies in their messaging—or even in their business model—that they hadn’t previously noticed.
So, the next time you’re struggling to grasp a concept—whether it’s pricing strategy, leadership, or marketing—don’t just read about it. Write it down, teach it, or explain it out loud to someone in the simplest terms possible. If you get stuck, that’s your sign to dig deeper. Refine your explanation, eliminate unnecessary complexity, and keep working until you can communicate it effortlessly.
When you do, you’ll not only understand your business better, but you’ll also become a clearer, more confident communicator. That’s the transformative power of the Feynman Technique, and once you start using it, you’ll never look at learning the same way again.
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How can you use the Feynman Technique to better understand your business?