The Hidden Traps of Startup Thinking

Cognitive Biases and Superficial Success

Introduction: The Danger of Imitation in Startups

Startups are often heralded as engines of innovation, but many fall into the trap of copying successful companies without understanding what truly made them succeed. This phenomenon — akin to cargo cult thinking — leads startups to adopt trends, rituals, and management fads without grasping their underlying principles. In addition to cargo cult thinking, several cognitive biases and flawed business heuristics contribute to startup failures. Understanding these pitfalls can help entrepreneurs build sustainable, innovative businesses rather than chasing illusions of success.

Cargo Cult Thinking: Superficial Emulation

Cargo cult thinking occurs when startups mimic the external features of successful companies — such as open offices, trendy branding, or charismatic leadership styles — without developing the fundamental drivers of innovation and efficiency. A common example is the belief that simply launching an app or using buzzwords like “disruptive” and “scalable” will guarantee venture capital funding and market traction.

Example: WeWork attempted to position itself as a tech company despite primarily…