Start Your Own Forum

Become a Converge ‘Champion’?

A champion is basically a driven and impatient member.  These are the members who are not happy to wait to be invited to a Converge Forum, they go and start their own.

We encourage these driven, impatient and successful people to give us a call.  We provide full training and weekly support for Champions and your time requirements are not as big as you might think.  Champions drive the recruitment of members as well as chair / lead the meeting.

What do you get?

  • The opportunity to grow a network of local businesses selected by you.
  • Increased profile in your local area, the Champion is the education facilitator for the group and you form great bonds when you are in a position to help someone’s else’s business.
  • Increased skills – you are frontline for all of the coaching material and as a result you often learn more than the members, these skills translates into your business.
  • Database – on acceptance as a Champion you will be given a database of every business in your area to source your members.  The database is yours to keep.
  • Income – not enough to stop doing what you do but it helps
  • Personal and business growth – just joining a Converge network provides a good level of growth for you and your business, starting and driving a network gives the opportunity for enormous growth that translates into your business.

If this is you, call or email us today and let’s get started.

Mascot Converge

Posted by on 8:06 pm in Mascot, Meetings | 0 comments

Mascot Converge

Mascot Converge is kicking off in June

The forum will be run by Phillip Agripanidis from Just Lending.

For more information or to attend a breakfast please email

Freshwater Converge

Posted by on 7:58 pm in Freshwater, Meetings | 0 comments

Freshwater Converge

Freshwater Converge meets each Thursday morning 7:30am at the Bended Fork in Freshwater

The forum is run by Craig Troy from Converge Consulting.

For more information or to attend a breakfast please email

Surry Hills Converge

Posted by on 9:39 pm in Surry Hills | 0 comments

Surry Hills Converge

Surry Hills  Converge will start in June 2014

The forum will run by Cameron McKay  from Converge Consulting

For more information or to attend a breakfast please email

St Kilda Converge

Posted by on 9:32 pm in St Kilda | 0 comments

St Kilda Converge

St Kilda Converge meets on Friday mornings 8:00am at Leroy Expresso, 191 Acland St, St Kilda (starting 20th June 2014)

The forum is run by David Lin from Strata Consultants Australia

For more information or to attend a breakfast please email



Business Forums

Posted by on 11:22 am in Business, Double Bay, Freshwater, Gordon, Manly, Maroochydore, Mascot, Meetings, Mona Vale, Mosman, Newport, Parramatta, St Kilda, Surry Hills, Sydney CBD | Comments Off

Business Forums

Why a Business Forum?

Many small business owners feel very alone in their endeavours. We understand that the best way to develop a sustainable, rewarding business relationships is to work with people you like and trust.  With more and more people working for themselves, successful marketing is becoming harder.  Developing mechanisms to connect your business with the people who need your products and services is imperative and a Converge Business Forum provides such an environment.

Networking also provides the perfect platform for business owners to get together.  However for most networking groups all that happens is the handling out of cards.  At Converge we think that whilst this is valuable, what is really valuable is the exchange of ideas and experiences.

Being part of a Business Forum is like having a supergroup of fellow entrepreneurs supporting you – promoting your business and acting as a sounding board for any challenges that arise.

The benefits of referred business over non-referred business are well known – the challenge is finding the time and having the skills to build strong referral relationships.  We feel that these relationships are not built by a quota system but instead by spending time together talking openly about how we do business and learning how to do it better.

What makes Converge different?

At Converge, we don’t just provide the platform for business relationships.  We believe that business networking is great for referrals and strategic business growth – but what makes us different is that we combine high level business resources alongside our business forums.

These resources cover a wide range of business topics and they serve as business education but also a stimulus for the discussions – it is in the discussions that the learning happens.

Converge is the leading organisation in combining business networking with business coaching material.  Not only do we offer you the ability to generate quality referrals and receive support from fellow business owners, but you will also benefit from our comprehensive coaching and education program.

Why join a Converge Business Forum?

People join Converge to grow their business and develop themselves personally. We are focused on business owner development.  Business coaching is just as important to the growth of your business as the referrals that networking provides. In many cases you are your business, so if we can help you to grow and develop, then your business will benefit even more.

Converge Business School.

Converge members have open access to our extensive business coaching and education resources including articles, books and book summaries, presentations and tutorials. New resources are added weekly and articles are updated regularly. As the saying goes, “you are either green and growing, or ripe and rotting”. It is our belief that ongoing learning (regardless of the topic) will benefit you, and your business. We are so enthusiastic about business education that if you can’t find a resource that fits your needs, just let us know and we will source it for you.

What does it cost?

Membership costs $100 plus GST per month (plus whatever you order for your breakfast).

Return on investment.

As a Converge member your ‘Return on Investment’  may come from:

  • quality referrals and leads generated from your network
  • tips and market intelligence
  • advice on business issues from the ‘Board Sessions’
  • skills improvement from the extensive business education and coaching provided through the Converge Business School
  • confidence that comes from public speaking, ‘selling’ yourself and your business, leading a ‘Board’ and delivering training and educational material.

For many members, all that is required to cover the cost of membership is one or two successful leads per year

Maroochydore Converge

Posted by on 5:58 pm in Maroochydore | 0 comments

Maroochydore Converge

Maroochydore Converge meets every second Wednesday.

The forum is run by Mark Mellor from Love & Partners Accountants.

For more information or to attend a breakfast please email

Gordon Converge

Posted by on 5:56 pm in Gordon | 0 comments

Gordon Converge

Gordon Converge meets each Friday 7:30am at the Pecorino Cafe behind the train station.

This forum is run by Andrew de Souza from Northshore Business Coaching.

For more information or to attend for breakfast please email

Double Bay Converge

Posted by on 5:47 pm in Double Bay | 0 comments

Double Bay Converge

Double Bay Converge meets each Thursday morning 7:30a at Cafe 21 on Knox St.

The forum is run by Grant Levitas from Principal Edge.

For more information or to attend a breakfast please email

Parramatta Converge

Posted by on 5:34 pm in Parramatta | 0 comments

Parramatta Converge

Parramatta Converge meets every Wednesday for lunch in the Parramatta CBD.

The forum is run by Paul Rattray from ATB Partners.

For more information or to attend please email

Newport Converge

Posted by on 5:30 pm in Newport | 0 comments

Newport Converge

Newport Converge meets every second Friday at the Harvest Cafe at 7:30am.

This  forum is run by Converge Co-Principal Wayne Condon.

For more information or to attend please email

Champion’s Lunch June 2012

Posted by on 10:29 am in Gallery | 0 comments

Champion’s Lunch June 2012

We hosted our first Champion’s lunch yesterday – a thank you for our brave Champion’s who lead the groups each week.  Great opportunity for the guys to get to know each other and talk about their groups, their backgrounds and their experiences.  As you can see there was a tiny bit of drinking as well.

Who (or what) are you really competing against?

Posted by on 6:10 pm in Blog, Business, Customers, Strategy | 0 comments

Who (or what) are you really competing against?

Small business owners often get this wrong.  There are 4 main competitors any small business has and they are:

  1. A direct competitor
  2. A substitute
  3. DIY
  4. Apathy

Direct Competitor
This one is fairly straight forward and where we often give much of our attention.  If they don’t choose you then your client can elect to buy from a direct competitor which is another business very much like yours that sells the same product or service.

This is where your client solves their problem (i.e. the problem that your business solves) with a substitute instead of a direct competitor.  This can be a major blind spot for business owners, the inability to recognise a substitute as a threat to their business.  Take coffee as an example, a direct competitor to a good barista is the other good barista across the street but a substitute would be Red Bull from the convenience store nearby.  You need to understand what the substitute competitors are for your client.

Your client (in many cases) can ‘do it themselves’. Maybe not as well as you can do it for them but they can still get a result, electing to not buy from you but instead solve the problem on their own.  This will be a big threat to accountants in the coming years as the ATO makes it easy for people to lodge their own tax returns as an example.  People can build their own websites, do their own marketing, train themselves at the gym or buy a book or Google the solution.

The last one is apathy where your client just does nothing at all, put it off temporary or indefinitely. For some of the products and services out there, the client doesn’t need to engage even if there is good reason to do so.


Why is this important?

It is important because you need to know who your real competition is so you can design your marketing and sales spiel to suit.

When we started Elders Home Loans (a national home loan franchise as part of Elders Ltd) we wrongly assumed that our big challenge would be to break the established relationships the agents had the local brokers.  Our marketing material and sales spiels were all geared toward why they should use us instead of another broker.

What we found when we started was that only a small percentage of the agents referred to a broker and our true competitor was not the other brokers but apathy – they just didn’t refer at all.

We quickly changed our tack. We adjusted our marketing material and spiels to focus on why they should refer a broker in general instead of doing nothing at all. Once we had them agreeing to that we then had to ‘sell’ them on why us versus someone else.

So who is your competition?

Out of the last 10 or 20 clients that you missed out on, work out what percentage of those clients you lost to each of the four areas of competition.  Then review how you market and sell.

Are you addressing the right competitor or do you need to change your approach?

Know your customer

Posted by on 10:39 am in Business, Sales & Marketing, Start Up | 0 comments

Know your customer

One of the biggest mistakes small business owners make (some big business owners as well) is that they don’t know their target customer segment well enough, or if they do they insist on trying to target a much broader group.

Why?  Because we hate to say no to potential business and often think that we can do more than we should.

We get excited about how big the potential market place is and therefore how big our business can be.  The reality is that for most small businesses, there will be a small amount of the market that ‘gets’ the value from your business and are willing to purchase you over the competitive offers / choices.

Often when I ask small business owners to describe their market or ‘where they will play’ they say things like;

  • NSW
  • People between 25 and 60
  • All Sydney businesses
  • People who drink coffee

All of these are massive marketplaces and way to big for a medium to large business let alone a small business.  In fact they are almost paralysing they are so big – where do you start when you think your market is this big?

The broad you go, the weaker your message will be.  The weaker the message the harder it will be to attract customers to convert.

Unfortunately this often comes down to discipline – you as the owner need to pick a market and stick to it which means saying no to other markets you know you can’t service as well.

You can’t say no until you have first said yes.

So what is important here is that you know the small segment that ‘get’ the value from your offering, and that small segment is big enough for you to build your business around.  Plus they should also be growing and not declining and  have the money to buy you.

If not then you and your business will struggle.  However know you market, chase it, build for it, service it and you will have a very successful business.

Struggling to pick your target customer segment?  Then answer this question – if I could have 100 clients magically appear today but they must all look the same, what or who would they look like?

This is your target customer.

You don’t have a business without this

Posted by on 8:32 pm in Blog, Business, Communication, Customers, Strategy | 0 comments

You don’t have a business without this

You don’t have a business if you don’t have a clear value proposition.

Businesses exist to solve client’s problems or a specific client problem – this is your value proposition.  How well your business solves that problem for a specific client segment is your competitive advantage (see Business Systems Theory).

If your business does not solve a problem for your client then chances are it is not a viable business.  This is also the case if it doesn’t solve that problem in a way that means your clients will chose your solution over other options.

Amongst the key questions that every business owner should ask themselves regularly are:

  1. What is my value proposition?
  2. Am I clearly communicating my value proposition?

You need to be really clear with the first question.  Business owners are often natural sales people and sometimes the person we sell best to is ourselves i.e. we buy our own spiel.  One way we do this is convincing ourselves that our value proposition is better than it really is or that it is broader than it really is.  Just because we think that we can do something, doesn’t mean that the market will buy it from us.

Trying to do to much will weaken your value proposition, as will trying to do it for too many people.  Your value proposition resonates highest with a particular client segment.  Others also get parts of it (often enough to purchase) but one segment ‘really gets it’.  Trying to sell it to the wrong groups devalues it for the target group.

When people are not buying your product or service, or trying to negotiate you down or adjust your offering; it means that either you are not communicating your value proposition effectively enough, or, you are talking to wrong people (I will deal with this next week).

Just looking at your communication – do your clients quickly understand what you are really offering them, what problem it solves and how it solves it better than other options?  If not then this is where you should start making changes.

Sometimes it is just that we are assuming too much from the prospect, or that we are using jargon or poor information, sometimes we have just delivered the value proposition poorly.  Whatever it is, if you have the right client in front of you and can’t articulate your value proposition effectively, then this will be disastrous long term.

Value propositions can we weak or strong.  Remember the analogy about the headache tablet versus the vitamin.  One is a must have and the other is a nice to have.  Ideally your value proposition should be a must have, at least for your target clients.

So spend a little time answering these questions for yourself and then share with someone you can discuss it with for some blunt feedback.  If it is weak then here is a great opportunity to improve.

  1. What is my value proposition?
  2. Am I clearly communicating my value proposition?

Do you have a business or are you self employed?

Posted by on 2:43 pm in Blog, Business, Customers, Strategy | 0 comments

Do you have a business or are you self employed?

Maybe a better question is, “do you want to have a business or would you rather be self employed?

This conversation comes up for us a lot – especially in the forums and around the masterclass.  What is the right answer.  Many people who thought that they had a business, actually realised that they were self employed.

Most small businesses in Australia are really people who are self-employed.  And this is ok.  The only issue we have is when people think they have a business to sell and they don’t – this can be a huge disappointment.  I personally have lost more than a couple of coaching clients because they bought me in to ‘just tidy up’ their business for sale and I turned around and told them that they had nothing to sell – unless they were staying with it in the sale.

If you are self employed (not a business owner) then, like an employee, you need to plan for your retirement, save and invest – because when you stop the exertion your income will stop.  It is unlikely that you will have anything to sell and if you do it won’t be for the huge sum that you had hoped to fund your glorious retirement.

On the other side you can move from being self-employed to building a business.  If you have a business then it exists / functions / grows without the founder and can be staffed by people who are relatively easy to recruit / train.  This takes more effort, more time and at times more risk – but it comes with significantly more rewards.  It also forces you to ‘let go’ and potentially ‘dumb down’ your product or service.

The decisions you make as a business vs. self-employed are significant different.  This direction is the key context for all of your business decisions.  What is it that you want?  What is your exit strategy?  If you plan to sell your business then who will you sell it to: an employee, a competitor, a supplier, a distributor or an independent party.  It is important to know who (demographically) you think will buy your business and then orientate it towards them.

You can comfortably do either.  Just make sure you know what you are (self employed or a becoming a business) and plan accordingly.



6.5 reasons your SME will fail in 2015

Posted by on 6:14 pm in Blog, Business, Sales & Marketing, Strategy | 0 comments

6.5 reasons your SME will fail in 2015

As a SME business owner here are six and a half sure fire ways to fail in 2015 – fail to deliver your forecasted financials, fail to deliver yourself time and quality of life, fail to deliver the best to your clients or fail to survive at all.

Whilst there are more ways to guarantee your business fails in 2015, here are a few of the main ones

1. No  Plan

No business plan, no strategic plan, no strategic objectives.  As they say if you don’t know where you are going then any road will get you there.

If you don’t decide what your business will be then the clients will and whilst you need the clients to tell you certain information, having a business that is completely client led is frustrating and rarely gets you the result that you set out to get.

     1.5 Not following your Plan

Having a plan is the first stage, but now you must follow it.  A key aspect of all planning is to determine or pre-determine which way you are going and importantly which way you are not going.  The essence of a strategic plan is saying we are going in this direction and not that direction.  Without the ‘not bit it is simply not as effective.

Worse than not saying the ‘not’ is when you have a plan and then bury it in the desk draw or completely ignore it when the first issue arises.

2. Poor Management Skills

You might be a professional X, Y or Z but that is just the product your business sells.  Your vehicle to wealth is the business itself.

I’ll repeat that as it is important.  Your profession or skill is just your business’ product.  the business itself is your vehicle to wealth.

Spend the right amount of time learning to be a better business person and how to manage, run and grow the business.

3. Lack of Capital

This is not necessary large chunks of money or investment – it is the money needed to continue building.  Many a good business has failed due to running out of cash trying to get to the next sales cycle.

Know you capital requirements for the year and make sure you have enough to keep going.

4. Chasing too many rabbits

The man who chases two rabbits goes hungry.

Having multiple product or servicing offering that are trying to meet the needs of multiple customer groups is a sure fire way to waste money and generate mediocre results.

You can do anything but you can’t do everything.  For some small business owners saying that they can’t or don’t offer something is harder than it was for Fonzie to say ssssssorry.  Don’t be that owner.

5. Doing too much

No one can do it as well as I can.  Whilst there may be some things in your business that this applies too (ideally there won’t be any if you have a scalable business) there can’t be too many.  If there are then this is where you should start make changes this year because a business that only you can do is not a business but a bad job.

Outsource anything that someone else can do as well or better than you.  Yes it is a cost but if your business model is sound it will help you to generate more revenue.

6. Financial Ignorance

If you don’t know your numbers it is unlikely you will succeed in the long term.  Work with your accountant or advisor and know what the financial numbers are for your business, then make sure that you always have these numbers at hand.


What did we miss? 

Lots.  Things like poor marketing, incorrect positioning, bad resource allocation, poor response to competition, lack of sales skills, sales call reluctance, bad hiring processes, poor client retention, lack of cost control etc

To build a great business is hard, even a good business takes a lot.  But….if you can it will generate all the things you hoped for when you first started.


Grow the business owner, grow the business.
Converge Business focuses on ‘business owner development’ for small to medium business.  Working ‘on’ the owner we are able to positively impact the business.  We run weekly Business Forums and monthly Business masterclasses.For more information visit our website or email

Grow the business owner – grow the business

Posted by on 1:30 pm in Business, Featured, Start Up, Strategy | 0 comments

Grow the business owner – grow the business

For a large majority of small to medium businesses the key resource, core competence, distinct capability, competitive advantage, USP etc etc is ‘you’ the business owner.  You are the biggest lever that your business can pull to generate results.

So why do you neglect your own development?

Not talking about continued professional development in your area of expertise but your business acumen.  The ability to disconnect from the product or service and engage with the business.  The ability to shift your understanding into a completely new field then run & grow that business.

There are two common answers to this question: (1) don’t have the time and (2) don’t know how / where to do that.

Yes you do – and yes you do.

One of Stephen Conveys 7 Habits of highly effective people is to sharpen the saw.  The analogy is a person cutting down a tree with a blunt saw and another person pointing out that if he was to stop and sharpen the saw he would finish quicker.  His response is that he doesn’t have the time to stop and sharpen the saw, he is too busy cutting down the tree.

Time is not in as short supply as we often tell ourselves.  What is in short supply is productivity.  Time we have lots of, we just wasting it doing things inefficiently or doing things we should get someone else to do.

Where do you sharpen your business acumen saw?  Well we are one option, but there are hundreds of options all around you where you could seek assistance, seek information, seek training or seek experience to grow your understanding of business / your business.

Grow the business owner – grow the business.

This was a key part of our thinking when we started Converge 5 years ago and is still our focus as we push into 2015.  Go sharpen your saw.


Struggling with your yearly business planning – try the 90 day approach

Posted by on 10:56 am in Blog, Featured | 0 comments

Struggling with your yearly business planning – try the 90 day approach

Tis the season for planning.

As many businesses get ready for the next 12 months, 3 years or even 5 years planning sessions we have a suggestion for you – start using a 90 day plan.

We have used this in large national companies we have run, in top 200 ASX clients, small start ups and of course we use it in our own consulting business.

The key to it’s success is the detail around who is doing what, by when and how much.  Our advice is don’t use it (or any other plan) without these factors as it is here that your plan will succeed or fail.

The key benefits of 90 day planning are:

  • The time period is long enough to make changes but not so long as the end game gets lost
  • It allows for clarity across an business to ensure that you put the first things first.
  • It gives you an easy-to-read plan to review your progress against each week.
  • It allows for wins to be celebrated every 3 months which greatly enhances the good feeling in the business
  • It allows for you to adjust if required.
  • It is easy to complete and follow

Most of our clients also have their strategic plan that sits alongside the 90 Day Plan to keep the boat heading in the right direction but all the real action is tied to / decided in / monitored through the 90 Day Plan which sits on everyone’s desk.

Happy planning and if you would like a copy of our 90 Day Plan template email me at  If you want more help and would like information on out Business Forums or Business MasterClass then let’s arrange a phone call.

Taking some time over the break to think about your business? These questions might help.

Posted by on 11:52 am in Business, Customers, Strategy | 0 comments

Taking some time over the break to think about your business? These questions might help.

Are you going to find some ‘thinking’ time over the break for your business?  If so you are not alone.  Being a business owner means that you often get so caught up in the ‘doing’ that you don’t get a chance to do the ‘thinking or planning’.

So whilst you should take a physical & mental break it is unlikely that your business will ever completely leave your thoughts.  So taking some time to think objectively about your business and how you can make it better next year is a good way to channel that energy.

Here are some questions you might want to try to answer.  Not an exhaustive list be any means but hopefully enough to spark your thought process.

  1. What will be my core product or service and who will be my key clients?
  2. What will I keep doing / start doing / stop doing in 2015?
  3. What are the major opportunities for 2015?
  4. How will I assess and make decisions about the opportunities?
  5. What are the key challenges for my business in 2015?
  6. How will I deal with these challenges?
  7. What are the key areas of improvement that I need to make to the business?
  8. Do I have the skills / knowledge / information to effectively makes these changes?
  9. What did I complain about this year that I will act on next year?
  10. What decisions do I need to make about my staff – who should stay and who should go?
  11. How will I avoid distractions, prioritise & stay on course?
  12. What does success look like – i.e. this time next year I will have been successful if…..



3 things that big business do and small business don’t – but should.

Posted by on 12:54 pm in Business, Featured, Strategy | 0 comments

3 things that big business do and small business don’t – but should.

Whilst there are many factors of business that are common regardless of the size of the business, there are some behaviours that are common in big business and absent in small business – to the determinant of the small business.

Here are 3 things that big business does and small business doesn’t but really should, especially if they want to break out of owner dependence (where a small business is more self employed job than business due to it being dependent on the owner working in the business to survive)

1. Build in Accountability

Big business has layers of management and this creates accountability.  Small business generally has one owner manager and there is rarely anyone there to hold that person to account.  Every idea is a good idea, every excuse a valid one and every justification right on the money.

The lack of accountability is a major contributor to mediocre results in many small businesses but fortunately it has a easy fix.  You need to get some people around you that will remind you of what you commit to do and tell you that being too busy is no excuse for not doing the sales calls you know you need to do, as an example.  It can be a peer, a group, a coach or mentor but that person must be comfortable telling you the truth.

2. Segment & Discriminate Clients

Many small business owners are reluctant to focus on segments in the market and opposed to discriminate against clients who are not core.  This greatly increases the work load, reduces the value provided to the clients and in turn the profitability of the business.

Big business does this very well and in fact that would not survive if they didn’t.  Singapore Airlines is very comfortable discriminating in favour of the people at the front of the plane and BMW with the 7 Series buyer.  Your top clients deserve more / better / bigger and unfortunately this means that the bottom clients will get less.  In many cases they expect this anyway.  The top ones certainly do.  Not all clients are created equal and it is a mistake to try and treat them equally.

The other aspect of this point is where clients enter your business.  Small business often buys the ‘promise of lots of work ‘ and start new clients off as A clients, only to have to move some of them down to B and C later when the promised work does not materialise.  Big business does this much less.  Take the Qantas club – you can’t ‘talk’ your way into the Platinum Club, you have to earn it through flying.  Why?  Not because it is full but because it would piss off the current members who have earned their spots and privileges and they (the current A clients) would likely move to another airline.

3. Work on the Business

Whilst big business is know for unnecessary meetings and communication, amongst all the meeting they actually do a better job at allocating time to work on the business.  Small business owners struggle to find the time and importantly to prioritise this activity and as a result their business grows / develops at a much slower rate than it could.

Again an easy solution but one that takes discipline.  Booking time and location to ensure that you spend some time every week working on your business is a key to short and long term success.  If you are not working on your business then who is?


Why do smart business owners make dumb decisions?

Posted by on 11:02 pm in Business | 0 comments

Why do smart business owners make dumb decisions?

I know many very smart business owners (plus some that are not). What puzzles me about some of these smart ones (myself included) is that with all of their experience and business acumen, how they still sometimes make dumb decisions.

When I went looking for the answers I was surprised with how many potential ‘issues’ there were. Here are a couple that stood out.

1) The fundamental attribution error.

This bias makes us attribute the failure of others to character and our own failures to circumstance. “Bob’s business went broke because he was incompetent; mine went broke because of the recession.” It also attributes our own successes to our competence, discounting luck, while seeing others’ successes as products of mere luck.

This lands you in hot water when you assume that bad stuff only happens to other people: you’re not going to be part of the 50 percent of people who get divorced, and the price of your house will go up etc

2) The confirmation bias.

We tend to like and surround ourselves with people who think like us. If we agree with someone’s beliefs, we’re more likely to be friends with them. While this makes sense, it means that we subconsciously begin to ignore or dismiss anything that threatens our worldviews, since we surround ourselves with people and information that confirm what we already think.

3) The overconfidence bias.

This is also known as the ‘my guess is better than yours’ bias. People’s confidence in their own decisions tends to outstrip the accuracy of those decisions.

4) The availability bias.

We tend to estimate what’s more likely by how easily we can come up with an example from memory. The availability of our memories is biased toward vivid, unusual, or emotionally charged examples. So we tend to make those more salient, then come up with weird decisions based on them.

5) The sunk cost fallacy.

The term “sunk cost” refers to any cost (not just monetary costs but those in terms of time and effort) that has been paid already and cannot be recovered — so, basically, a payment of time or money that’s gone forever.

In economics, a sunk cost is any past cost that has already been paid and cannot be recovered. For example, a business may have invested a million dollars into new hardware. This money is now gone and cannot be recovered, so it shouldn’t figure into the business’s decision making process.

This is a big one in businesses, jobs and relationships. You can be stuck in a crappy situation for a while, and then think, “But I’ve invested three years in this! I can’t just throw that away!” The fact is that those three years are never coming back – you’ve already thrown them away, so don’t worry about it! The sooner you cut bait and go for a better situation, the better off you are.

6) We incorrectly predict odds.

Imagine you’re playing Heads or Tails with a friend. You flip a coin, over and over, each time guessing whether it will turn up heads or tails. You have a 50/50 chance of being right each time.

Now suppose you’ve flipped the coin five times already and it’s turned up heads every time. Surely, surely, the next one will be tails, right? The chances of it being tails must be higher now, right? Well, no. The chances of tails turning up are 50/50, every time, even if you turned up heads the last 20 times. The odds don’t change.

The gambler’s fallacy is a problem with our thinking. The problem occurs when we place too much weight on past events and confuse our memories with how the world actually works, believing that they will have an effect on future outcomes (or, in the case of Heads or Tails, any weight, since past events make absolutely no difference to the odds).