I Was Wrong About AI Consulting (what I learned)

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AI Summary

Summary: Entrepreneurship Journey and Lessons Learned

• Background:
  • Quit corporate data science job to pursue entrepreneurship.
  • Initial plan: Sell data science services to fund product development.
  • Worked at Toyota as a data scientist, left after a year despite promotion opportunity.
  • Freelanced in grad school, grew a YouTube audience, planned to leverage these in consulting.
• Consulting Experience:
  • Took 36 discovery calls, landed two contracts, one expanded to a $25,000 project.
  • Realized consulting didn’t align with long-term goals, passed on opportunities.
  • Consulting was more complex than anticipated, with non-technical challenges dominating.
  • Sales process was time-consuming and difficult as a solo operator.
• Challenges in Selling AI Services:
  1. AI seen as a luxury, not a priority for businesses.
  2. AI projects require experimentation, adding uncertainty and reducing perceived value.
  3. High-ticket contracts need multiple client interactions, hard for solo consultants.
• Shift in Focus:
  • Consulting consumed time meant for content creation and personal projects.
  • Advice from a product entrepreneur: focus on product development, not consulting.
  • Realization: Entrepreneurship is hard; pursue what is fulfilling.
• Adjustments Made:
  • Removed discovery call option, passed on major contract.
  • Consulting taught valuable skills in sales, marketing, and customer interaction.
• Key Takeaways:
  1. Trust is crucial in differentiating clients from prospects.
  2. Importance of discovery phase to avoid solving the wrong problem.
  3. Focus on one main sales channel; for the author, it was YouTube.
  4. Sales aren’t guaranteed until payment is received.
• Revenue Streams:
  • YouTube channel, Medium blog, and ad hoc consulting calls generated $766.38.
  • YouTube growth from 2,000 to 18,000 subscribers, revenue increased significantly.
• New Plan:
  • Post one YouTube video a week.
  • Benefits: Focus, clear goal, and multiple positive outcomes.
  • Commitment to one platform is necessary for success.
• Reflections:
  1. Must choose between a successful consulting business or YouTube channel.
  2. Mindset shift: from “Will this work?” to “How can I make this work?”
  3. Trust in oneself to figure things out and adapt.
• Conclusion:
  • Emphasizes the importance of focus and commitment in entrepreneurship.
  • Encourages viewers to trust in their abilities and adapt their strategies.