Commitment and consistency bias: What is it and how to manage it for your start up

Starting a business is tough, especially for young entrepreneurs. There’s a psychological thing called commitment and consistency bias that can have a big impact on start-ups. It’s important to understand this bias and how it can affect your business journey.

What is Commitment and Consistency Bias?

Commitment and consistency bias means that once we make a decision or believe in something, we tend to stick to it, even if there are new facts or things change. We do this to feel like we’re making sense and not contradicting ourselves.

Effects on Start-ups:

1. Your Dedication: When you start a business, you put a lot of your time and emotions into it. Commitment and consistency bias can help you stay motivated and dedicated, even when things get tough. It gives you the strength to keep going and not give up easily.
2. Attracting Investors: When you show that you’re committed to your business idea, it can make investors more interested in supporting you. They like to see that you’re passionate and focused on your goals. This bias can help you convince investors to give you the money you need to grow your start-up.
3. Building Customer Trust: Consistency is key when it comes to gaining loyal customers. If you consistently provide good products or services, people will trust you and come back for more. When customers trust you, your start-up can grow because they’ll recommend you to others.
4. Being Open to Change: While commitment is good, it’s also important to be flexible. Start-ups need to adapt to changes in the market. If you’re too committed to your original plan and refuse to change, it can hurt your business. Being open to new ideas and adjusting your strategies when needed can help you stay competitive.

How to Deal with the Negative Effects:

1. Stay Open-Minded: Knowing about commitment and consistency bias is the first step. Be aware that sometimes you might be too stuck on your ideas. Stay open to new information and be willing to change your plans if it makes sense.
2. Listen to Others: Don’t be afraid to listen to different opinions. Encourage your team to share their ideas and thoughts. Hearing different perspectives can help you make better decisions and avoid getting stuck in one way of doing things.
3. Test and Learn: Instead of committing fully to one idea, try testing it out on a smaller scale. See how it works and gather feedback. This way, you can make adjustments along the way without risking too much. It’s like taking small steps before making a big leap.

Conclusion:

Commitment and consistency bias can have a big impact on start-ups. It can keep you motivated and attract investors and customers. However, it’s important to balance it with flexibility and openness to change. By being aware of this bias and being willing to adapt, young entrepreneurs can navigate the challenges of starting a successful business.