A Cognitive bias is the psychological tendency of the brain to draw incorrect conclusions, even in familiar situations or when presented with clear information. When talking to small business clients I refer to a collection of three common cognitive bias as the Everest Effect.
How Your Cognitive Bias Can Destroy Your Business Read More »
Conventional business advice is that in order to have a successful business you need to write a business plan. However, did you know that the simple act of writing a business plan can often lead your business to fail?
The Simple Truth Why Business Plans Cause Business Failures Read More »
Learn how savvy entrepreneurs recognize they may have a confirmation bias that can stifle their success and discover how to avoid them.
How Your Confirmation Bias Is Stifling Your Business Success Read More »
When it comes to marketing, small businesses should understand that psychology and sales are two parts of the same coin. From the world of psychology, one cognitive bias that a small business owner should embrace when it comes to marketing is known as “the halo effect.” Technically speaking, the halo effect is a cognitive bias
How to Harness the Halo Effect to Boost Profits Read More »
In the book “Predictably Irrational: The Hidden Forces that Shape our Decisions”, Dan Ariely talks about a cognitive bias known as the Endowment Effect. Simply stated, the endowment effect is the fact the people in general place a higher value on the things they have over identical things they do not have. Dan used the
The Endowment Effect Read More »
Good marketers also use primacy and recency in their messaging to make sure that potential customers will be able to recall the most important elements of their message.
How To Leverage The Primacy And Recency Bias In Marketing Read More »
For our Everest expedition, the previous few years had offered a better than average weather pattern during the month of May, which is when most expeditions plan to reach the summit. The guides became complacent and assumed that May of 1996 would hold the same good weather pattern. They should have made their decisions based
The “Recency Bias” Read More »
The guides of the Everest expeditions often boasted that they could guide anyone with average fitness to the top of Mt. Everest. They were so confident that they ignored the 2:00 return to base rule and paid the ultimate price. In a poll taken of teen drivers, 93% indicated that they were better than average
The “Overconfidence Bias” Read More »
Members of the ill-fated Everest expedition invested upwards of $65k each. They spent weeks hiking to reach the final base camp before their ultimate eighteen-hour push to the summit. There is an unwritten rule that if you have not made the summit by two o’clock in the afternoon of the final push, you should turn
The “Sunk Cost Bias” Read More »
Humans have difficulty recognizing and reacting to experiences that are new to them. This mental state is called our “Normalcy Bias”.
Do You Suffer From a Normalcy Bias? Read More »
