What is a Delusion?
A delusion is a firmly held false belief that persists despite evidence or logic that contradicts it. Delusions are often a symptom of a mental disorder or neurological condition. Key aspects of delusions include:
- The belief is demonstrably false or implausible.
- The person holds an absolute conviction in the belief, regardless of lack of evidence or proof against it.
- The belief is not shared by others in the person’s culture or subculture.
- The delusion resists change even when the person is presented with conflicting information.
- There is often an emotional or personal investment attached to the belief.
Challenging or arguing against delusional beliefs is typically ineffective, as the convictions are held regardless of contrary evidence. Gently leading the person to question their beliefs can sometimes be helpful.
Common Delusions of an Entrepreneur
Here are five common delusions of an entrepreneur:
- Curse of knowledge: Overestimating how much other people know or understand about their product/idea. Assuming it is self-evident when it is not.
- Optimism bias: Overly optimistic estimates of the chances of success, sales projections, and benefits. Underestimating risks, costs, and potential for mistakes.
- Planning fallacy: Failing to account for unexpected events and challenges. Believing they can control outcomes more than they really can.
- Overconfidence: Believing their abilities, skills, and likelihood of success are greater than they objectively are. Failing to recognize their own limitations.
- Illusion of control: Believing outcomes depend almost entirely on their own plans and actions rather than external factors. Underestimating the impact of competitors, market changes, and other variables outside their control.
Summary
A delusion is a fixed false belief that persists despite reason or evidence, often rooted in some form of impaired or disordered thinking. The key defining characteristic is the absolute certainty with which the person holds the belief.
Common delusions lead entrepreneurs to overestimate their chances of success, underestimate risks and challenges, and believe they have more control than they actually do. Avoiding these biased thought patterns and grounding estimates and plans in objective data is key.
