7 mental models to help you make better business decisions

Mental models are simple frameworks that help individuals make sense of the world, analyze situations, and make informed decisions. They can be derived from various disciplines, including physics, engineering, psychology, philosophy, and economics, and are particularly helpful in business due to its high stakes and potential for significant consequences. The author has identified seven mental models that can be applied in a business setting, including first principles, second-order thinking, inversion thinking, confirmation bias, margin of safety, leverage, and the map is not the territory. These models can help individuals approach problems from different angles, evaluate potential outcomes, and make more informed decisions. By applying these mental models, businesses can reduce the risk of bad decisions and silly mistakes, and increase their chances of success.