While making decisions we often make wrong assumptions. We assume the future is going to be moving in certain directions based on what we "feel" about the "market trend".
For example, we see some 5 businesses giving Rs 1000 per Rs 100,000 investment every month, and it's been going on for few years... and we make wrong assumptions such as, 12% return per annum you can get from any business, or this model of "fixed profit" is possible for any business, or that these profits are calculated correctly etc. Or the number of gents boutique shops are increasing in the market meaning that there is a growing demand for gents boutique; etc
Nothing can be true. We realise it was a stupid business model only when each of these business start to fall , one by one.
When making decisions, humans try to predict future. They predict future by looking at past and present trends. But trends may not reflect true state of affairs, unless it's backed by proper studies. Studies might bring out not so beautiful facts.
So don't go by assumptions based on wild guesses or general "public" opinion. Base your future prediction based on assumptions which are based on right studies.
Clarity of Thinking is important for Right Decisions. If you can't assess these facts by yourself, engage experts to help you.
Best of luck for you and your enterprises!
Business Insights from
Ameen Ahsan Strategy Consulting
7558-900-800 | www.ameenahsan.com
7th Floor, Hilite Business Park, Calicut