Understanding Assumptions: Financial Institutions (and All Adults)

As many of you readers know, I’m going through an extensive process as DEUCE arrives at an opportune moment. It’s a high consequence environment and I love high consequence environments.

Skin in the game forces best practices.

When there are real consequences, we are forced, like water, to move towards the best route for success (or face those consequences). It’s funny how when risk is present, incredible logic comes to play. That’s the part I love. It’s rigorous.

For example, as I navigate due diligence with the bank, they don’t just want to see financial models, projections, and typical business plan-type information. They want all that and they want to know my assumptions.

That’s right, there’s not a financial institution in the world that will do meaningful business with you without a formal dive into the assumptions at play. The funny thing about that is it’s like pulling-absolute-fucking-teeth to get grown men and women to consider assumptions between them in nearly any relational activity. Yet, no bank would dare avoid that topic. I find us humans to be largely defensive, reactionary, and stubborn in “real world” interactions.

Meanwhile, we’re all bathing in assumptions that pose great risk.

Ironically, you likely delve into large bank dealings a few times in your life, but will have semi-consequential interactions with other adults every week for our entire lives. Assumptions are in question every time between you and the banks (because logic) and assumptions are rarely on the table between you and every other human in your life (because we’re ridiculous).

“What are the assumptions here?”