What is Analysis Paralysis?


In business Analysis Paralysis is paralysis based on the premise that by delaying decisions or committing to a particular business decision, there's more time to gather new information, conduct analysis and present recommendations to the business problem.
This premise only holds true for a while though.


Warning Signs of Business Analysis Paralysis
How can you tell that you’re starting to get down and in danger of becoming paralysed in your entrepreneurship journey?


  • Deadlines and due dates keep being extended
  • Team members express frustration
  • Second guessing a decision after it’s made
  • No decision or action is made
  • Continual collection of more data
  • Repeatedly putting off decisions until later
  • Postponing decisions in hopes that a better option will present itself
  • Seeking more options when you already have enough
  • Constantly reviewing the same information you’ve already gathered
  • Fearing you will make the wrong decision
  • Waiting so long to decide that we miss the opportunity to do so

Common Causes Of Analysis Paralysis

Information Overload - Big Data, Big Money – however is not always the case. This form of analysis paralysis is when you gather too much information, spending your time and energy collecting information instead of making decisions. It’s really a nerdy form of procrastination.

Intellectual Curiosity - Intellectual curious individual, instead of simply accepting things the way they are without having the desire to know how or why they came to be, they become curious. intellectually curious people automatically seek information before making a decision. This only becomes a problem when the information seeking results in so many options that they cannot make a decision.

Perfectionism - Perfectionists tend to strive for perfection, so why would they do anything if they knew failure was a potential result? Perfectionism analysis paralysis is the need to find the “right” answer before making a decision. It’s either perfect or it’s not going to happen. This form of paralysis can slow down your entrepreneurial journey quite significantly if not kept in check.


Preventing Analysis Paralysis

A quick way to resolve analysis paralysis is to choose one thing to see through to its completion. Make this one area of business your obsession. Know the common excuse traps that you fall into and push past them.

The problem with this way of thinking is that it’s almost impossible to get all the information needed to have a 100 percent guaranteed outcome, so it’s better to accept and not strive for 100 percent guarantee.

Deploy an incremental development or agile approach, in which the details of the problem and solution are learned during the course of startup journey. This saves you resources to analyse “everything” in advance.

When your startup operates in the industry of your expertise, you may just need to take action with or without research, particularly if the timing is right. One of the skills that business owners learn is to trust their instincts, insights and use their experience in their decision making. If they make a mistake they learn from it and promptly correct it.


When you’re scaling up your startup you have to take a lot of information into account before making big decisions.
Big data is big in business, but when does too much analysis lead to paralysis and not progress?


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