Most common mistake I see starting with new customer is very simple – lack of deep analysis about market fit, need for specific product and so on.
Some time ago, I discussed with the now-former client some numbers used as a basis for product development. Numbers were a little bit crazy, at least in few different ways.
- All numbers based on predictive analysis were too round and too large (forty thousand billion USD for one segment, sixty for another, and so on.)
- The client was totally unaware that similar products are already available on the market in the model of the shelf product ready for implementation.
- When I asked about the data source, the answer was odd: “We got numbers from the undisclosed website and United Nations”. Okay. Undisclosed site is NOT KNOWN for being widely used, and I found quite a few discrepancies on data and materials I am sure about. On the other hand, I am not aware that the United Nations provides any such data. Their data are solely based on organizational purpose and not more.
- Target was insane; get one percent of all business company is dealing with. Globally. In the next two years.
What was wrong with that?
Quite simple. Lack of any proper analysis. Someone cannot round the numbers on a matter of scale. It is not possible to create a normal business model or business plan based on that.
Why is that happening?
The answer is simple. People are often too confident doing something they are not educated to execute or problem with ego or the Dunning Kruger effect. Let put it this way. I know how to write code in Python, use R, or something similar. But I know people who are experts in particular areas. I am willing to buy their services as in the end; it will cost me less.
Deep analysis is basic thing starting doing something. I advise to do it before. Dive deep.
We are all different.
Have a nice day,