Last version published: 19/10/2018 09:57
Publication number: ELQ-59121-2
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How to Make Your Financial Model Look Professional
This tool provides Before and After examples to show you how you can make your models look professional.
How your model looks matters. When it comes to financial modeling, your model has to make sense and look good too.
In this tool, I'm going to:
-Explain to you why the appearance of your financial model matters
-Show a real life founder's model and how I went about improving it in only 3 hours
-Teach you the tips and logic on making your model look professional
Why your financial model has to look professional:
The main two reasons are:
1. It has to be understood by other people
2. It gives credibility
1. When you build a financial model or an Excel file of any kind, someone will always see it, either internally or externally.
If you make a model and you'd like someone in your team to take a look and take action, it's essential that they can actually understand the model. They should be able to look at it and know what is going on without you having to explain it to them.
If the reason you are building a model is for investors to see, then you definitely should care about them being able to follow your logic so that they will then give you money!
2. First impressions count, and if someone takes a look at your model and dreads having to work with it, then they have a pessimistic mindset before they've even started. But, it's not at all likely that you'll be able to change their first impression by completely surprising them.
So wouldn't it just be simpler to provide something that looks great but doesn't have just as much vigor? They might give you the benefit of the doubt. They may not even dig into it as much.
Your numbers are less likely to be real the earlier your business is. The later stage your business is, the numbers will be more so based on real experience, but bigger checks are at play here so they really need to be credible.
The appearance of your model and the clearer the logic, the more your model and forecasts are assumed to be credible and logical.
Credibility is currency.
This tool provides two financial models; one 'before' model, and one 'after' model, along with a step-by-step methodology on how to improve your own. AND, if you'd prefer not to read it, there's a video provided too.
This Best Practice includes
1 'Before' Model, 1 'After' Model, 1 'How-to' Methodology, 1 Video
Alexander Jarvis offers you this Best Practice for free!
download for free
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