Second-Order Thinking

First-order thinking looks at solving the immediate problem.

Second-order thinking looks at the consequences of solving the problem.

To practice second-order thinking, ask the question, “and then what?”

Most people look at the world through first-order thinking such as:

“That product is on sale, I should buy it.”

Second-order thinking asks the question, “then what?”

“If I buy the product then I’ll need to use it.  I really don’t have a use for it, therefore, I shouldn’t buy it.”

In ideating on a startup problem, move beyond first-order thinking to second-order thinking.

Given a customer problem, what are the implications of solving it in a few days, a few months, and a few years?

How will the market respond to the problem?

What will competitors do?

How important is this problem to the customer?

How else will the customer respond to the problem?

First-order thinking is simple and straightforward.

Second-order thinking is complex and complicated.

Consider applying second-order thinking to the customer problem your company solves.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.