Entrepreneurship is fast-moving, and every decision can have a long-lasting effect on the future of your company and on people’s lives.
In order to make good decisions, we need to improve our critical thinking skills.
If you chose b) as the “longer” line, unfortunately, you are wrong. Both lines are the same length.
Even if you answered correctly, this simple example demonstrates how our senses can fool us into making the wrong decisions, even if the “facts” appear clear-cut.
In this article, we look at what we can do to improve our critical thinking skills.
Here goes…
What Is Critical Thinking?
Critical thinking is a way to analyse information without allowing emotions, assumptions or biases to enter the thought process.
The brain always attempts to take shortcuts when making decisions. This means we are all prone, regardless of level of education, background or ethnicity, to use our pre-existing biases to come to conclusions. Unfortunately, these conclusions are often wrong.
In the example at the start of the article, the process in our brains allowed us to analyse the information based on the in-built bias that our “eyes can be trusted”. Phrases such as “seeing is believing”, reinforce this incorrect bias.
Therefore, the shortcut was to visually assume that one line was longer than the other, rather than checking our visual biases and measuring the lines to make sure.
Critical thinking involves never accepting information at face value. Instead, critical thinkers should ask:
- Is this accurate?
- How do I know this is true?
- What are the alternatives?
- What evidence supports this conclusion?
- What assumptions am I making?
Critical thinking is not scepticism about everything. It’s about taking a step back and analysing information in a thoughtful and informed way.
The example shows that we are all likely making many decisions based on assumptions or biases that are totally incorrect.
Imagine the hundreds of decisions and assumptions we are making every week that are totally incorrect, based on emotion, false information or biases.
These false assumptions and incorrect decisions can pile up and hinder us from achieving our goals.
Critical Thinking For Entrepreneurs
It’s even more essential that entrepreneurs adopt critical thinking skills.
We live in a data-led society, and we are all constantly bombarded with information.
If we understand that the majority of that information is likely to be processed incorrectly due to our inherent biases, entrepreneurs should realise that bringing those incorrect conclusions into their businesses could have catastrophic consequences for their venture.
Critical thinking allows entrepreneurs to make the most of limited resources in a world driven by uncertainty.
Here’s why critical thinking matters so much:
1. Improved Decision-Making
Founders face daily decision-making. Some decisions are small, others are transformational.
Critical thinking allows entrepreneurs to look at all the options available objectively. ‘Gut instinct’ should not become the be-all and end-all of the process.
If you find you are making all your decisions on ‘gut instinct’, this may be a warning sign, and you may need to upgrade your critical thinking skills.
2. Better Problem-Solving
No business is without problems. It’s unavoidable. As entrepreneurs, we are not allowed to bury or run away from problems; we must fix them.
Critical thinking allows us to break down problems into their constituent parts and formulate solutions to these problems.
3. Adaptability
Critical thinking allows entrepreneurs to be adaptable in an ever-changing environment. A non-critical thinker might find themselves chasing the latest big thing.
Whereas a critical thinker will analyse the market, fully aware of biases and preconceived assumptions and pivot accordingly or not at all, depending on the conclusion reached.
4. Emotional Decision-Making
There is a reason why social media, in particular, uses emotional topics to get engagement and reactions from viewers and subscribers.
As humans, when we operate from our emotions, rationality often goes out of the window.
We will stand by and argue our belief systems without giving a second thought as to where those beliefs actually originated from.
Passion and emotion can be a good thing, but critical thinking helps to balance the influence of biases and reduce the danger of confirmation bias (where we only seek data that supports our idea and reject everything else).
Critical thinkers understand that, as humans, we are naturally emotional and adapt accordingly to make better decisions.
5. Stronger Leadership and Team Alignment
As a critical thinker, it will help you communicate your ideas in a logical and articulate way.
When you’re conveying ideas to your team, those ideas need to be supported with logic and evidence.
A critical thinking leader will inspire trust and encourage thoughtful decisions throughout the team.
Critical thinking enhances communication, empathy, and clarity.
Elements Required For Critical Thinking
In order to develop critical thinking skills, you need to build on key elements:
1. Curiosity
Critical thinking begins with a deep desire to understand. Curious entrepreneurs constantly ask questions. Genuine curiosity drives discovery and innovation.
Asking questions like the ones below should lead you in the right direction:
- Why does this problem exist?
- What could we do differently?
- What do customers really want?
2. Open-Mindedness
It is essential that entrepreneurs keep an open mind. Having a ‘know it all’ attitude will not help develop critical thinking skills.
Having an open mind doesn’t mean you accept everything that comes your way. It means you should give everything proper consideration before writing it off.
It’s possible to learn from many sources, customers, competitors and even critics.
3. Analytical Skills
The ability to analyse information and identify patterns is essential to think critically.
An understanding of the following is essential:
- Market research
- Customer behavior
- Financial projections
- Product performance metrics
4. Self-Awareness
Entrepreneurs should be aware of the limitations of their own biases, assumptions and emotions.
Taking a moment to step back and question your own thinking can be a great skill to have in order to build critical thinking skills.
5. Logical Reasoning
Logical reasoning is an essential element of critical thinking. Developing the ability to connect facts, ideas and arguments logically and coherently will help to enhance critical thinking skills.
Every step should be supported with genuine evidence, rather than ‘gut feeling’ or anecdotal assumptions.
6. Reflection
Critical thinkers do not make rash decisions. Before making any decision, pause, evaluate and reflect.
Ask yourself:
- What worked?
- What didn’t?
- What lessons can we apply moving forward?
Final thoughts
Critical thinking is not just for academics. Entrepreneurs can use this powerful business tool to enhance decision-making and safeguard against impulsive and biased outcomes.
Critical thinking allows entrepreneurs to break down and evaluate problems in a logical fashion and allows them to communicate the solutions effectively to their teams.
Having an open mind and being open to at least considering alternative viewpoints is essential in the critical thinking process.
In a world overflowing with information and noise, the entrepreneurs who rise are not simply those who work the hardest, but those who think the clearest.
Good luck!
Want to learn about how to create your pitch deck manually? Read this article:
You can also watch the YouTube video here:
Pop Up World YouTube Reviews:
Review. Malik Atif – Hindi -Urdu
Review. Inside Crypto – Hindi – Urdu
Review. Convincing Crypto – English
The Pop Up World Token is designed specifically for entrepreneurs, to store value and to utilise on our platform Pop Up World. Join the revolution in financial freedom today.
***Disclaimer: This article is not financial or legal advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
Get the token on Cardano Decentralised Exchanges (DeXs), MuesliSwap, SundeSwap, Wingriders and Minswap. Or click the link here:
Pop Up World token has a growing ecosystem
Earn and help support the Pop Up World Blog and entrepreneurs worldwide by joining our Pop Up World Stakepool! Go to https://popupworld.co.uk/popupworldstaking
Thanks!
Want to learn how to stake on Cardano? Read this article:
It starts with an idea. Pop Up World is a platform that helps start-ups and small businesses reach for the stars. No matter what size you are. Use our start-up guide Business Zero to Superhero, Design your Logo. Connect with investors via our Investor Connector. You can start a Website and Domain name. You can Search for and promote your Premises. You can promote your idea for free on our Pop Up World Ads site, you can even form a Limited Company You can also join us on our journey via the Pop Up World Token (PUW).
Pop Up World Blog 