Wednesday, October 29, 2008


Ever wondered why almost all projection sheets always predict company breakeven in three or five years (odd numbers ;) )?

Whats so great about the numbers 3 and 5 that have caught the collective fancy of investors and entrepreneurs alike? Any ideas on its origins? Does it have anything to do with the average lifetime/ working-life of a person?


WhoAmI said...
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WhoAmI said...

We've been through this! :)
I think its all about having a nice number to talk about. 5 is nice and round. 3 is playing it safe enough.

And not many people talk about breaking even in 1.3 years!

It's all about saying something the human mind is conditioned by and likes to hear. Our MBA-types loves the usuals such as "where do you see yourself 5 years from now?", "Whats your 5-year plan?" and the like!