Page 11 - Newsletter July - Sep 2020__

PERSPECTIVES BY SKC
4. Possibility Assumptions
While making plans, a common mistake made is of assumptions related to possibility. Most business plans talk about a particular demographic and their share of the demographic as a percentage. For example, there are 1.3 billion people in India, 20% (260 million) of them are below 18 years old. Nearly 2% of them belong to the higher middle classes with an annual income range of US$40,000 to US$60,000. They usually spend at least 1% of their annual income on this proposed product. The possible market size of 13 mil people with an average spend of US$400 to US$600 makes it an attractive market. These kinds of possibility calculations are the possibility of assumptions. When these go wrong or different facts emerge, a lot of damage is done.
5. Experiential Assumptions
These sets of assumptions are the basis of the previous tangible (Profits & Losses) and intangible (Pleasures & Pains) experiences we have had. Every new business plan gets affected by these experiential assumptions resulting in us becoming apprehensive and doubtful or at times overconfident of the expected outcomes. A mistake we live to regret.
Author:
Sameer Kamboj
Co-Founder and Chief Mentor SKC World
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