Lean Analytics

Chapter 1. We’re All Liars

Let’s face it: you’re delusional.

We’re all delusional—some more than others. Entrepreneurs are the most delusional of all.

Entrepreneurs are particularly good at lying to themselves. Lying may even be a prerequisite for succeeding as an entrepreneur—after all, you need to convince others that something is true in the absence of good, hard evidence. You need believers to take a leap of faith with you. As an entrepreneur, you need to live in a semi-delusional state just to survive the inevitable rollercoaster ride of running your startup.

Small lies are essential. They create your reality distortion field. They are a necessary part of being an entrepreneur. But if you start believing your own hype, you won’t survive. You’ll go too far into the bubble you’ve created, and you won’t come out until you hit the wall—hard—and that bubble bursts.

You need to lie to yourself, but not to the point where you’re jeopardizing your business.

That’s where data comes in.

Your delusions, no matter how convincing, will wither under the harsh light of data. Analytics is the necessary counterweight to lying, the yin to the yang of hyperbole. Moreover, data-driven learning is the cornerstone of success in startups. It’s how you learn what’s working and iterate toward the right product and market before the money runs out.

We’re not suggesting that gut instinct is a bad thing. Instincts are inspiration, and you’ll need to listen to your gut and rely on it throughout the startup journey. ...