Remember all the things that have gone wrong on your projects in the past? Well here is a word of advice, don’t forget them.
he reason for this is optimism bias.
Optimism bias is the tendency for individuals to expect better than average outcomes from their actions.
Like I said, remember on your last project when you underestimated the cost of finishing your project, or thought that you could get the utility companies to do their thing in a reasonable timescale, or that the planners took double the 12 weeks they quote.
Well optimism bias on projects does lead to an underestimation of project duration, an overestimation of people’s abilities & competencies and most crucially an underestimation of the cost.
And its prevalent on all projects. According to studies, it is worst in the early stage planning of projects. You know the phase before most involve any external help.
You know the best time to kill a project
As early as possible to minimise how much money you spend on something that will never work.
This is especially true in property – there are lots of opportunities out there but only a small percentage of them are deals worth pursuing