The perception of rationality and magical thinking

[mstajminakter15]

For example, if a business starts out with modest revenues, it's easy to get stuck on those numbers and not adequately project future growth. This bias can lead to conservative decisions and failure to fully exploit growth opportunities.

To overcome this bias, it is important to adopt a long-term mindset and consider the potential for exponential growth. This requires a deep understanding of how compound interest works and a willingness to challenge our assumptions and cognitive biases.

Another factor that contributes to our difficulty in projecting future numbers is the perception of rationality. We tend to view ourselves as rational beings and view projections of large numbers as magical thinking. This leads us to be conservative in our estimates and to fail to fully exploit the growth potential of our businesses.

To overcome this bias, it is important to adopt an open mindset and be willing to challenge our assumptions. This requires a deep understanding of how exponential growth works and a willingness to consider optimistic and ambitious scenarios.

In addition, it is useful to learn from successful examples and study business cases canadian biotechnology email list that have experienced exponential growth. This can help us better visualize the growth potential and adopt a more ambitious and proactive mindset.

What is the 78 Matrix?
The 78 Matrix is ​​a model that maintains that if you manage to gain new customers on a sustained basis and they do not churn, you will have a very interesting business in the future. This model is based on two essential pillars: gaining new customers on a sustained basis and minimizing churn or customer loss. Recurring payments are what make SaaS businesses extremely attractive, as they ensure constant income and facilitate long-term planning and projection.

How does the SaaS model affect business projections?
The SaaS model impacts business projections by introducing the concept of recurring revenue and compound growth. This means that revenue accumulates and generates more revenue over time, which can lead to exponential growth. However, this exponential growth is difficult for most people to project due to our tendency to think linearly and underestimate the cumulative effects of compound growth.