Extrapolate v Interpolate
There exist at least two ways to set hours and revenue goals for your accounting practice:
1. Look to past observable data and extrapolate to draw conclusions about what’s possible for an unknown future.
”I’ve done 15% growth for the last 5 years, therefore I will shoot for 15% growth in future years.”
2. Decide the future data point you want to create, and interpolate between a known future point and today.
”Given that anything is possible, and everything is possible, what I want to create is _____.”
Extrapolation is a good method, if it leads you to what you want.
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