5 Mental Models for Decision-Making: How to Make Smarter, Faster Choices
Why Mental Models Matter
Founders live and die by their decisions. Unlike large corporations bogged down by bureaucracy, startups have one huge advantage—speed. But speed without clarity can lead to disaster. Making the right call quickly is often the difference between winning big or watching competitors pass you by. That’s where mental models come in.
Mental models are the frameworks that help you cut through noise and think more clearly. They act as cognitive shortcuts that improve your ability to analyse situations, anticipate outcomes, and make smarter, faster decisions. The world’s most successful investors, founders, and leaders rely on mental models to guide them—so why shouldn’t you?
But learning about mental models isn’t enough. Knowing how and when to apply these frameworks is just as important as the models themselves. Let’s explore some of the most powerful mental models, when to use them, and the trade-offs they bring.
1. One-Way vs. Two-Way Doors: When to Decide Quickly vs. Deliberately
During my time at Amazon, one of the most valuable decision-making frameworks I learned was Jeff Bezos' One-Way vs. Two-Way Doors model. Bezos distinguished between two types of decisions:
One-way doors are irreversible—once you go through, there’s no turning back. These require careful thought.
Two-way doors are reversible—if you make the wrong choice, you can step back and correct it. These should be made quickly.
Example:
A startup deciding whether it should shut down? That’s a one-way door. But choosing between two marketing strategies? That’s a two-way door—you can test and iterate.
Something I’ve personally learnt is that often we think many decisions are one-way doors when in fact, the majority of decisions we make are two-way doors. This framework has really helped me to decide to move quickly even when I don’t have the perfect information.
Applying this model forces you to ask: Is this decision truly irreversible, or am I overthinking it? If it’s a two-way door, act fast and course-correct later.
When to Use It:
When deciding how much time to spend analyzing a decision.
When trying to maintain speed without reckless mistakes.
Pros:
✅ Helps move quickly on reversible decisions. ✅ Avoids unnecessary delays in startup execution.
Cons:
❌ Can lead to rushed decisions if not applied correctly.
2. First Principles Thinking: Breaking Things Down to Their Core
Whatever you think of Elon Musk, he’s built a number of successful businesses across a number of verticals. He is famous for using First Principles Thinking to revolutionise industries. Instead of accepting conventional wisdom, he deconstructs problems to their fundamental truths and rebuilds solutions from the ground up.
Example:
Instead of assuming that electric car batteries are inherently expensive, Musk broke down the cost of materials and realised that building cheaper batteries was possible with the right engineering.
I’ve used this approach when building new ventures. Instead of following the playbook of how things “should” be done, I strip the problem down to its core elements and rebuild from there. It’s a powerful way to find unique solutions.
How can you apply this today? The next time you're stuck, ask yourself: What are the fundamental truths of this problem? Start from there.
When to Use It:
When facing a problem with no clear solution.
When breaking into a new industry or rethinking an outdated process.
Pros:
✅ Encourages innovation and fresh thinking. ✅ Helps challenge industry norms and inefficiencies.
Cons:
❌ Can be time-consuming when a quick decision is needed.
3. Inversion: Thinking Backwards to Avoid Mistakes
Charlie Munger, Warren Buffett’s legendary business partner, swears by Inversion. Instead of only thinking about what to do, he asks, What should I avoid? By identifying failure scenarios, you can take steps to prevent them.
Example:
An athlete trying to improve performance shouldn’t just focus on the best training methods but also avoid common pitfalls like poor sleep, bad nutrition, and overtraining. Looking at what they should avoid, helps them get the most out of their performance.
Ask yourself: What would completely derail this project? Then, put safeguards in place to prevent those failures.
When to Use It:
When making a high-stakes decision with big downsides.
When planning strategy and risk mitigation.
Pros:
✅ Helps identify blind spots and avoid costly mistakes. ✅ Encourages a preventative approach to problem-solving.
Cons:
❌ Focusing too much on what can go wrong may lead to over-cautiousness.
4. The 80/20 Rule: Focus on What Truly Matters
The Pareto Principle (or 80/20 Rule) states that 80% of results come from 20% of efforts. Entrepreneurs, investors, and high performers leverage this model to prioritise what truly moves the needle.
Example:
We often feel like we need to be across all channels and all platforms equally, however that is almost never the case.
If you’re a founder, instead of spreading your efforts across multiple marketing channels, identify the 20% that generate most of your leads and double down on them.
Use this today by analysing your daily workload: Which tasks drive the most impact? Do more of those.
When to Use It:
When feeling overwhelmed with too many tasks.
When optimising for efficiency in a business.
Pros:
✅ Helps prioritise high-leverage activities. ✅ Increases productivity and impact.
Cons:
❌ Can lead to neglect of seemingly low-impact tasks that may be essential in the long run.
5. The Regret Minimisation Framework: Making Bold Life Choices
Jeff Bezos used the Regret Minimisation Framework when deciding whether to leave his Wall Street job to start Amazon. He asked himself: “When I’m 80, will I regret not taking this chance?” The answer was clear—he quit and built one of the most valuable companies in history.
Example:
I’ve used this framework several times when I need to make a big, bold decision. My version of this mental model in action is asking myself “what will my 80 year old version & future kids think?”. It helps me distill what seem to be really difficult decisions into more values based decisions.
If you’re debating whether to start a side hustle, ask yourself: “In 30 years, will I regret never having tried?” The answer often leads to action.
When to Use It:
When making major career or life decisions.
When debating taking a big risk.
Pros:
✅ Helps overcome fear and take calculated risks. ✅ Encourages long-term thinking.
Cons:
❌ Doesn’t account for short-term practicalities.
Conclusion: Build Your Decision-Making Edge
Startups win by moving fast, but speed without clarity leads to mistakes. Mental models help you cut through uncertainty and make better decisions, faster.
Quick Guide to Using These Mental Models:
🚪 One-Way vs. Two-Way Doors → When deciding how much time to spend analysing a decision.
🧠 First Principles Thinking → When innovating or solving complex problems.
🛑 Inversion → When assessing risks and avoiding failure.
⚡ 80/20 Rule → When optimising time and efficiency.
💡 Regret Minimisation → When making life-changing choices.
Knowing how and when to apply these frameworks is key. The best founders don’t rely on intuition alone—they use these models to move fast and make high-quality decisions.
Which of these mental models have you used before, and how did it impact your decisions?
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About me
Hi, I’m Rohit and I’m the Founder of The Komo Club, where I help high-performing founders and executives win in business and life through self-leadership and scalable systems. I also host The Startup Playbook Podcast, where I’ve interviewed over 200 of the world’s top founders, investors, and operators, and I’m a General Partner at Playbook Ventures, backing early-stage startups. Before this, I was a founder myself, so I know firsthand how messy the journey can be. Now, my focus is on helping others navigate the ups and downs—through content, community, and conversation.
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