First-Principles Thinking
03

Applying It to Real Decisions

A repeatable framework for making non-obvious decisions: list assumptions, separate fact from inheritance, rebuild the answer from the bottom up.

#decision-making

The 5-question decision template

  • What am I actually trying to achieve? (the outcome, not the activity)
  • What do I know to be true , measurable, verifiable, not opinion?
  • What am I assuming because someone else assumed it first?
  • If I deleted every existing solution, what would I build from scratch?
  • What is the cheapest test that proves I'm right or wrong this week?

Worked example: pricing

Assumption: 'SaaS is sold per-seat at $X/month.' First-principles question: what does the customer actually pay you to do? If you save them 100 hours per month, per-seat pricing is leaving most of the value on the table. Maybe usage-based, outcome-based, or annual flat-fee is the real answer.

Worked example: hiring

Assumption: 'We need to hire a senior engineer.' First-principles question: what work needs to be done in the next 90 days? Maybe it's contractor work. Maybe it's a junior plus better tooling. Maybe it's nothing , the work shouldn't be done at all.

Every decision has a default answer baked into your industry. Your job is to know whether the default is right for YOU.