In The Surprisingly Large Cost of Telling Small Lies Rebekah Campbell looks at the problem with lying in the context of entrepreneurship and creating products:

Peter maintains that telling lies is the No. 1 reason entrepreneurs fail. Not because telling lies makes you a bad person but because the act of lying plucks you from the present, preventing you from facing what is really going on in your world. Every time you overreport a metric, underreport a cost, are less than honest with a client or a member of your team, you create a false reality and you start living in it.

And it’s extremely difficult to get out of that reality once you’ve created it.