Every skill — whether it’s product, marketing, hiring, or just decision-making — moves through 4 levels of competence.
But most people never get past Level 1.
Not because they don’t want to improve. But because Level 1 feels like confidence. It tricks you into thinking you already know enough — when in reality, you’re flying blind.
Here’s the breakdown:
1. Unconscious Incompetence
You don’t know what you don’t know.
And worse — you think you do.
Everything seems simple because your worldview is narrow.
This is the “man with a hammer” stage — like Charlie Munger said, “To the man with a hammer, everything looks like a nail.”
You’ve got one tool or one approach that worked before, so you assume it’ll work again — no matter the context.
I’ve seen this firsthand.
An entrepreneur I knew built a solid business early in their career. They figured, “I’ve cracked the code.” So they tried to repeat the playbook — same tactics, same mindset — in a new business… and it failed.
Why? Because they didn’t actually understand what made the first success happen. They thought it was their “system,” but it was really timing, market tailwinds, or something else they hadn’t factored in.
That’s Level 1 in action: confidence is high but clarity is low. Dangerous combo.
2. Conscious Incompetence
Now you know what you don’t know — and that’s a beautiful thing.
You’ve moved past illusion and into clarity. You can finally define the problem. You can point at it and say, “Okay… that’s where I’m stuck.”
And more importantly, you stop pretending. You stop sharing opinions in areas you haven’t earned yet. You start learning instead of posturing.
This is where real progress begins.
Most people don’t talk enough about how freeing this level is. Once you’re here, you can focus. You can make smarter decisions, seek better mentors, and build skill without ego getting in the way.
It’s humbling — but it’s where momentum starts.
3. Conscious Competence
You’ve got skill now — and you know it.
You can explain your decisions. You can teach others. You can break down what’s working and why.
It still takes deliberate effort, but you’re no longer guessing.
You’re thinking through every step. This is where most professionals operate.
4. Unconscious Competence
Now it’s second nature.
You’ve done it so many times it’s ingrained. You’re playing the game on instinct, but you’ve earned that right through repetition.
But here’s the twist:
You only get here by first admitting how little skill you have at Level 2.
Final Thought
Most entrepreneurs stay stuck at Level 1 — stuck in the mindset that “what worked once will work again,” never realizing they don’t even know what made it work the first time.
If you can make it to Level 2, you’re already ahead. Because now? You can see the problem. And once you can see it, you can solve it.
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