The Careful Practice of Amounting

One of the skills that has profoundly impacted my ability to make swift and effective decisions is a skill I call amounting.

At its core, amounting is simple: it’s counting with context.

Counting is a fundamental skill we all learned early on. It’s straightforward — 1, 2, 3, and so on. I think you know the rest. But context adds layers of complexity and intricacy to this basic act.

Context transforms numbers into meaningful insights, and turns counting into an actual skill.

You count all the time in your day-to-day, but practicing counting within context (amounting) can rapidly elevate your decision-making. And you can practice it all the time, anywhere.

It’s not just about knowing the numbers! You want to learn how to understand what those numbers mean in a given situation.

Why Is Amounting Important?

We constantly grapple with determining the “amounts” of things. Whether it’s budgeting, resource allocation, or project planning, identifying the right amount is crucial.

Often, we’re stuck because we can’t pinpoint an appropriate amount, leading to delays and indecision.

A Real-World Example

Recently, we worked on financial projections for BotOracle, our upcoming AI agent platform. The process was a labyrinth of amounting, filled with opportunities for this particular project to stall.

Consider this scenario:

Jam, (our financial wizard), asks, “What should the subscription price be for BotOracle Alpha?”

At this crossroads, I have two options:

1. Guess a number based on my understanding of the context (in this case, the cost of other AI tools like chatGPT, Claude, etc)
2. Initiate extensive research to determine the “right” number.

This is where it get’s fun. If I choose the second option and ask Jam to research, the process becomes recursive. He might return saying:

“Okay, in order to determine the Alpha subscription price, I’m working on the Customer Acquisition Cost (CAC). What will our marketing budget be?”

See the dilemma?

At some point, we have to select an amount and then work backward to assess its viability.

Amounting enabled me to make an informed initial decision, allowing us to move forward rather than getting bogged down in endless data gathering. It’s about making educated estimates within the appropriate context. I guessed that we should charge $25/month for the Alpha, and I was pretty damn close.

If you practice, proper amounting can go a long way towards saving time.

The Role of Context

Simple amounting isn’t a panacea. You can’t just guess numbers and hope they’re correct every time. They won’t be, lol.

Being in context is essential for effective amounting.

In the BotOracle example, I needed to be immersed in the market of AI agents and apps. Understanding current pricing models, competitor offerings, and customer expectations informed my ability to pick a reasonable subscription price.

Another Example: Product Development in oneXerp

This morning, Hameer, one of our CloudFruit developers, asked:

“What status should be set on this oneXerp system-automated process?” — (it’s a process that generates a payment schedule when the user doesn’t know how to pay).

At first glance, this might not seem like amounting, but it absolutely is.

I needed to determine:

• How many statuses do we already have?
• Should we introduce an additional status?

Statuses can quickly become unwieldy. Too many statuses can confuse users and complicate the user experience. We have to find the right amount to keep the system intuitive and efficient.

In this case, amounting helped us decide whether adding a new status was necessary or if we could work within our existing framework. For all those hanging on by the edge of their seats, we could work within our existing framework, no new status needed :)

The Practice of Amounting

So how do you improve your amounting skills?

Immerse Yourself in Context

• Understand the environment you’re making decisions in. Whether it’s market trends, team capabilities, or system limitations, context is king.

Leverage Experience

• Draw from past experiences. Familiar scenarios can provide valuable insights into current decisions.

Be Willing to Make Educated Guesses

• Sometimes, you won’t have all the data. Use what you have to make the best possible estimate.

Iterate and Adjust

• After making an initial decision, monitor the outcomes. Be prepared to adjust your amounts as new information emerges.

What You’re Avoiding

Analysis Paralysis

• You will get stuck in endless data collection without making a decision.

Inefficient Processes

• You will waste time and resources on unnecessary steps.

Missed Opportunities

• You will delay decisions, and that can mean missing out on market advantages or project timelines.

Final Musings

The careful practice of amounting is much more than simply counting and guessing; it’s about making informed decisions swiftly by considering context.

In business, time is often of the essence.

So next time you’re faced with a decision that requires quantification, remember:

Don’t just count — amount.

About the Author

Sam Hilsman is the CEO of CloudFruit? and BotOracle. If you’re interested in investing in BotOracle or oneXerp, reach out to me. If you’re interested in becoming a dev ambassador for BotOracle, visit www.botoracle.com/dev-ambassadors to sign up.