Analysis Paralysis

The Internet is a blessing and a curse for business owners. The good news is you can discover the uniqueness of your business idea or product offering. The bad news is, you can find out how not unique they are. The better news is, it really doesn’t matter. There is room for everyone—if you take action.

One of my newest clients has an appealing and humanitarian concept for an online business involving products as well as community-building. She discovered many look-alike companies during her research. In her words, “I freaked out!” Wisely, she shared her feelings with supportive peers who consoled and counseled her. “It’s called ‘competition’ and you can handle it,” they advised. She will. More on how in a minute…

Then, a colleague told me how many hours she has been spending researching her business ideas on the Web. She was thorough and sincere and had accumulated mountains of knowledge about her industry. She studied the market up, down and sideways. She knows her competitive advantage and her target audience. But her income had stalled. I gave her one word of advice, “Act!”

What both of these small business owners experienced is analysis paralysis—the frozen state of inaction that comes from information overload. When this is your diagnosis, here is my prescription:

• Avoid paralysis by being crystal clear about what you need to know.

  o Develop a list of criteria that you are checking for.

  o Stay within a specific range.

  o Don’t let the surf carry you out to sea.

• Limit your research by time or quantity

  o When researching the competition allow yourself one to two hours per day for three days (or a similar formula) to accumulate a well-rounded picture of what’s out there.

  o Decide how many Web pages you’ll review to feel comfortable that you have gotten a fair reading on the marketplace For example, when looking to hire a Web designer, get 5-10 referrals and then examine 8-10 designs by each.

• Commit to taking an action by a specific date.

  o Plan a direct mail or email campaign.

  o Write your business plan.

  o Hire the expert you’re seeking.

• Make yourself accountable. Here’s where your goal buddy, mastermind group or coach becomes vital to your success.

Both of these entrepreneurs have boldly taken action and moved out of the comfortable harbor of research. They have enough information. Now they are sailing toward the payoff of productivity.