Projections are based on assumptions

When looking at business opportunities one of the things we get exposed to are financial projections. Most have a good deal of math behind them which certainly gives the appearance of legitimacy.

The problem with these type of projections is they are all based on assumptions. While the calculations might be spot on, if the assumptions are faulty, the conclusions will be faulty.

When looking at any projections, don’t just look at the numbers, look at the assumptions as well.

Have a great day!


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