Excel is an amazing tool.
It has revolutionized the way we do math in business:
Streamlines complex financial calculations.
Enhances data accuracy and precision.
Facilitates dynamic scenario modeling.
Boosts collaboration and data sharing.
Accelerates decision-making processes.
But there’s a dark side to Excel.
It’s easy to make hidden mistakes.
The more complicated it gets, the less you can follow how it works.
It triggers a Pavlovian reaction of eye immediately glazing over.
That’s why my number one recommendation to founders,
Who need to build complex financial models using Excel,
Is to start your model outside of Excel,
With pen and paper.
And before you come at me,
(Okay, Boomer)
Let me prove it to you:
Which feels more doable in the next 5 minutes?
A. Figuring out that you could estimate monthly revenue in your business like
Revenue =
# of customers last month
* traffic growth rate assumption
* average cart size from last month
OR
B. Reengineering a 3000+ line formula-filled model template created by an accountant in hopes of getting it to properly calculate revenue for your unique business
Start on paper.
Thank me later.
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