If there is something that is similar to most entrepreneurs, it is that they have a really interesting perspective when it comes to decision-making. One thing is for sure, every day, they do a lot of it. Furthermore, they have a different mindset in looking at opportunities than the rest of us. This is very true, especially for the important decisions that can make or break a business, and the everyday decisions that we all face such as the clothes we will wear or the meal we will eat for lunch.
In this article, we will look at how camping can help you think like an entrepreneur. Hopefully, this will be insightful and will allow you to understand this entrepreneurial perspective that can help you with your day to day decision-making.
Imagine one Saturday morning, you have nothing to do, and a wild idea appears, “Let’s go camping!” How we wish that things can be easily done with a blink of an eye. However, there are many factors to consider before we can actually head off to the campsite. Even for weekend decisions such as this, you need to have some serious decision-making to do.
The first thing to think about would be the campsite nearest you. Most probably, this campsite will be packed on the weekends because everyone wants to relax and spend some time with nature. Since you only thought of the idea on that Saturday morning, other people who had planned way before you did could already be in the campsite. The next problem you will be facing will be if there will still be some space left for you in the campsite of your choice.
It might already be 10 a.m., and you still have a lot of decisions to make such as the clothes you’ll bring, packing your stuff, the meals you have to prepare, and so on. You are now like an entrepreneur already because have so many decisions to make but have very limited time. You may think you are already on the losing end of the game because all of those who have already prepared for this days ago are already in the campsite or are already on their way. But don’t fret. You still have a chance at getting your own spot and enjoying your weekend.
The Game of Chance
You may already feel doubts about whether you should go camping or not; this is because initially, you see that it seems to be a low-probability proposition. Don’t worry just yet. You can process this problem through a decision tree. A decision tree is basically a tool where you will have a graph in the shape of a tree where you can draw out the decisions and the possible consequences, resource costs, utility, and outcomes.
Now, let’s go back to the decisions we have to face about camping. If you do decide to not go camping for the weekend, then the value is 0. Here you neither lose nor gain anything. But if you do decide to go camping, we will have two possible outcomes, with each having a probability of happening. One, you either get a camping spot to which you will have a value of +10 for the good result you will have. Two, you don’t get a camping spot to which you will have a value of -2 because you will lose time, money, and effort, not to mention, feel disappointed that you went all that way for nothing.
If we look at how things are, our expected value on going camping is on the negative. There is a 95% chance that you will be getting the -2 value and only 5% that you will be getting the +10 value. Now, we have an average of -1.4. With our decision to not go camping, we have an expected value of 0 and -1.4. If you are just like everybody else, the most rational thing to do is not to bother going camping at all. But as an entrepreneur, you are not just like everybody else. There are some tweaks we can do to the decision tree to make the outcome more favorable.
Thinking Like an Entrepreneur
Above, you had a 5% chance of getting a camping spot; this is because there are so many others who will probably go camping on that same weekend. If you think like an entrepreneur, you will see that your odds are better significantly. An entrepreneur can recognize the difference between a mere idea and the actual execution. While a lot of people may have the same idea, an entrepreneur knows that not all of these people with the same ideas will not be putting their plans into action.
If you look at it this way, if everyone else has the same assumption as that of the decision tree we just made, then no one would go camping. A brilliant entrepreneur would know how to play with this paradox to create a better outcome. We can easily go up to 10% that you will have a spot at the campsite.
Now you can see how easy it easy to be on the winning side of the game if you think like an entrepreneur. Hopefully, this article was able to give you some insights into how the mind of an entrepreneur works and you can take full advantage of it in your day to day decision-making.