WATCH THIS to Stop Overthinking

Summary

• Analysis paralysis is when someone overanalyzes a decision to the point where they don't make one at all.
• I've learned to balance decision-making speed with thoughtful analysis, especially when I was considering starting a business.
• Decisions cut off alternative paths, which can be intimidating, but avoiding risks often stems from a desire to feel safe.
• We should recognize our emotional biases; they affect our logic and influence our decisions.
• Most choices we face in life are reversible, so treating every decision as permanent can lead to unnecessary stress.
• I assess decisions by considering the worst-case scenarios and choosing the one I find most tolerable.
• Action often provides more valuable feedback than prolonged analysis.
• When facing a decision, identify your top assumptions, gather information to validate them, and set a limit on the analysis phase.
• Decisions delayed can lead to missed opportunities, as the market and circumstances change over time.
• Assumptions are crucial to test; they're statements we believe to be true but need to verify to make informed decisions.
• Preferences matter in decision-making, too. It's okay to choose a path simply because you prefer it.
• Through my experience with Acquisition.com, I've learned that direct action uncovers truths that analysis alone cannot reveal.
• Product-market fit can only be confirmed through customers actually buying and recommending your product.
• Conflicting reinforcement signals a true decision: when options are equally appealing and unappealing.
• Avoiding dwelling on past decisions prevents regret and allows for forward momentum.
• Remember, making decisions often feels uncomfortable, but it's necessary for progress and growth.

Video

How To Take Action

I would suggest tackling analysis paralysis by first recognizing it's okay to make decisions without having every single detail figured out. Decisions should take into account risks, but know that most choices we make can be changed later. So, don't stress too much about making everything perfect from the start.

A good way of making a tough decision is to consider the worst-case scenarios. Think about what you could live with if things don’t go as planned. This way, you focus on what you can tolerate instead of only looking for the best possible outcome, which might not always be realistic.

To avoid spending too much time on analyzing, set a limit. Identify your top assumptions about the decision, find information that proves if they're true or false, and then move forward. Don't let the chance to act pass by while you're stuck in thought.

If you're deciding to start a business or take on any new venture, test your main assumptions quickly. This action could be more helpful than pondering the what-ifs. For businesses, product-market fit is a great example – you'll only know if you have it when customers start buying and recommending your product.

Remember that preferences matter too. Sometimes, we choose a path just because it feels right, and that's okay. Take direct action based on what you like, not just on what seems logical on paper. This can be more fulfilling.

Lastly, don't dwell on past decisions. Keep moving forward and learn from the feedback you get from your choices. Making decisions may feel scary, but it's through these actions that we grow and make progress.

Quotes by Leila Hormozi

"Analyzing the situation caused me to procrastinate making the actual decision"

– Leila Hormozi

"The worst thing you can do is not make a decision"

– Leila Hormozi

"At some point you have to be able to put guard rails around yourself so that you're not sitting in paralysis forever"

– Leila Hormozi

"The best thing you can do is make a decision, accept that it could be incorrect, and also have a path to course correct if it is"

– Leila Hormozi

"People vote with their dollars and so at the end of the day is their product Market fit? I don't know, are people buying it and then telling their friends to buy it?"

– Leila Hormozi

Full Transcript

do you ever have analysis paralysis and maybe life feels like this this is what you're going to feel like when you're making a decision I just did a live about overcoming procrastination and a lot of people brought up analysis paralysis and so that's why I wanted to talk about it today I think what we first want to do is Define what analysis paralysis is and I'm going to give it my own definition because I don't like the dictionary so I would Define analysis paralysis as somebody who is compulsively analyzing a decision or situation to the point that they are not making a decision but rather spending their time analyzing it rather than executing here's the thing I actually tend to be the type of person who I always want to get all the information before I make a decision and I tend to fall into the Trap of wanting to get more information wanting to do an analysis wanting to build out a test case wanting to build an argument for each side and I have had to really learn how to B balance making a decision quickly with analyzing my options I think that the most relevant time that this happened to me was when I was trying to decide if I wanted to start a business honestly it was a cycle that was probably 18 months of just staying in my head do I start a business if I start a business what business do I start okay well do I have the skills to do that do I have the money do I have the resources and then okay well if I start a business what if these things happen I should weigh out all these options and I should make sure that before I go into this big decision that I thought about all the different ways it will affect my life analyzing the situation caused me to procrastinate making the actual decision because what is making a decision it is cutting off the alternative path when you get married you cut off the path of sleeping with other people of dating other people and you've committed to this path of this one person and I look at other decisions in life as the same way and I think that can be intimidating for people at times and so because of it we feel much more comfortable gaining more information but most of the time what people do when they're in this situation is they're trying trying to gain all the information possible so that they can just affirm the biases they already have that keep them feeling safe which is usually not taking a risk and staying where we are the reason that I have realized over time that is only useful to gain information to a certain extent is because at some point what you realize is that most decisions are not made based on logic our emotions and our biases affect how we interpret logic and so they will sway us no matter what so what is more important is that we become aware of our biases and of our emotions around the situation and then realize how they might be working against us and here's the thing is that most of the time many things that we will make decisions on will not pan out for us there are going to be many times that we hire somebody and they're not the right fit there are going to be many times that we take a risk to start a business and we have to shut it down and start a different one there going be many times that we take a job and then realize a year later it's not really a job for us us does that make it a bad decision or was it just the next step and now you've got to take another one and I think that a lot of the times what weighs on people is they make reversible decisions with an irreversible decision filter and the reality is there are a few decisions that are that way in our lives but many of the ones that people get caught up in are absolutely reversible rather than thinking you know is this going to work or not I just look at what's the worst case scenario if I take path a b and c and then I really visualize living through that worst case and which worst case do I find most tolerable or which one would I prefer to live out and that's often how I like to use making my decisions because the reality is if you're trying to make decisions thinking that everything is going to work every time and every decision you make is going to be amazing I think that's wrong lots of decisions are going to be mediocre at best but the goal in my opinion is just to not make any that are going to be the nuclear bomb on your life that are going to basically zero out all the other good decisions that you've made here's how I like to frame it for myself in the time that I'm spending analyzing this decision so instead of 30 more days of analyzing if I took those 30 days and just tested it out tried it which one would give me more information to make the next best move after 30 days and what I have found is that a lot of the time just doing it gives me way more information and feedback than sitting there twiddling my thumbs reading books calling people I think that when you're confronted with a decision the first thing you need to ask yourself is what are my assumptions that would make this a good or bad decision and then list out the top three and then allow yourself the time to gather information or data to figure out if those assumptions are true or false once you've done that what more information do you need but at some point you have to be able to put guard rails around yourself so that you're not sitting in paralysis forever if you don't make the decision then you will have the decision made by default because eventually it'll get made for you things change environment changes Etc I can't tell you how many people want to start a business and they've got an idea for what that businesses and then 5 years later after thinking about it for 5 Years homie the Market's it's gone there's no more opportunity anymore the same thing can be said with any other decision that you're making in life maybe now finally you've decided this is the girl to marry well guess what buddy you waited too long and now she doesn't want to marry you the worst thing you can do is not make a decision the best thing you can do is make a decision accept that it could be incorrect and also have a path to course correct if it is an assumption would be a statement you believe to be a fact that is crucial in determining if the decision is good or bad so say you want to start a chain of healthy food restaurants and you're like I've got this idea and I want to start them and I think I want to start them in Miami because people really like to eat healthy in Miami and I think that the price range of between $17 and $25 per plate is going to be right based on the income level okay so some of the assumptions the things that we're stating as facts are that people in Miami will want to eat this food okay well how do we know that's true people in Miami make a certain amount of money and because of that they will be able to afford this food how do we know that's true a lot of times there's statements that we believe to be facts that we need to test in order to figure out is this a good decision or not I think it's helpful in chunking it down to having between one and three assumptions that we want to determine are they true or false and then that's it you limit your yourself to those things now I would say the only other piece on top of that is that a piece that is not always factored into decision- making might also just be preferences you might realize that something might not be the ideal decision or path to take but you still prefer it and that's also okay to say I get that this may not be the best decision but I prefer this decision when we started acquisition. comom I had some assumptions that we tested and I found out some of them were false I assumed that because of our social presence people would be compliant with our recommendations and always adere here I have been proven false by that that is not correct another assumption that we made is that if you take minority stake in a business you have less expectations than if you take majority I have seen that to be the reverse is true but all of these things are things that I could have spent years trying to figure out or I could just get in the arena and do it and be okay with the fact that it's going to be imperfect we're going to make changes we're going to iterate you know who expects a business that's between 1 and 4 years old to not be iterating and making changes you know you should expect that you're going to be doing a lot of that because there's a lot of assumptions you find out if they're true or not and you take that feedback and you adjust your behavior that's what learning is I think in so many instances especially in business people are like well will they want this will they not people vote with their dollars and so at the end of the day is their product Market fit I don't know are people buying it and then telling their friends to buy it I think a lot of why people stay stuck and don't make a decision and call it analysis paralysis is because they have conflicting reinforcement they have some negative some positive which means usually is it even a decision if it's like this way clearly you're going to yourself and this way you're going to succeed that's not a decision that's just common sense so a decision is when you have two options that are equally as appealing and unappealing and so you have conflicting reinforcement a true decision is made when neither path seems better or worse than the other you're not going to feel good because the reality is is that every time you make a decision and you cut off the alternatives you lose what you could have had but here's the thing I think regret comes from constantly looking back on the path not taken and one thing I do not allow myself to do and I actually think this is something I do very well is I do not look back at the things that I could have should have wish I would have done because all that does it makes us feel bad it doesn't help us move forward the key to solving for analysis paralysis is to make a plan ahead of time I want you to remember it is never going to feel really good cuz things that feel really good are common sense decisions always feel scary and uncomfortable and especially when you have multiple options and all of those things could work or not work do not allow your feelings and your desire for relief of those feelings to dictate the decision