One of the fun things to do with spreadsheets is build out different “what if” scenarios around sales, marketing, operations, fundraising, exit opportunities, and more. So many different inputs, data points, metrics, and formulas to test. Only, to do this efficiently and effectively, it’s imperative to have accurate data and tools.
Here are a few thoughts on scenario planning:
- Ask an advisor, mentor, board member, or fellow entrepreneur for an existing spreadsheet to use as an example
- Resist the temptation to just plug in a number (e.g. 2% of calls will result in a demo), and instead use real data from the current team in the current time frame (e.g. use a system like SalesLoft to capture the outbound call, email, and demos scheduled data)
- Build multiple scenarios for each “what if”, including the high/medium/low outcomes or optimistic/average/conservative outcomes
- Run the results by an experienced CFO or entrepreneur and solicit feedback
- Shares the results with key members of the team and use it to inform decision making
Scenario planning is a common strategy entrepreneurs use to grow their business. Build out different “what if” scenarios and make better decisions.
What else? What are some more thoughts on scenario planning?