In particular, if you talk with VCs, they’re going to want to at least get comfort that you know the value of the key variables that drive your business, e.g., advertising rates.A well-designed financial model has a clear purpose, flows intuitively from inputs to final outputs, is well documented, and is easy to use and read.This makes me suspect that some people have the wrong mindset going into the game (models & bottles).” that consultants at Mc Kinsey travel 50-75% of their time. I’m praying that at least these jobs don’t screw up my life…” of the trade-offs between these different options.But he’s still searching for the magic-bullet solution: a way to become a deca-millionaire with no risk and no 100-hour weeks.Then, it ranks them on a scale from 0 to 255 and records those values just as a spreadsheet would.This is a strategic role playing game designed within an Excel workbook, where you outwit over 2000 possible enemies (wait, what?! How artificial intelligence can be programmed into the same tool I use for travel budgets is beyond me.If you start to talk about the pitchbook you had to re-print at 5 a.m.
Outside of your basic SUM function or filtering, I’m about as handy with Excel as a toddler with an abacus.I know some people will ask, “Did Mark Zuckerberg build a financial model when launching Facebook? But then again, very few of us will cofound a billion-dollar company which gets massive traction on day 1.A lot of entrepreneurs waste time and energy on companies which they don’t understand are destined to fail; one of the reasons for that is that they haven’t done any basic financial analysis.But then the other day a friend at a top bank emailed me saying: This brings up a slew of other issues – such as, “Wait, so what then?You’ll get bored in a week of doing nothing” but we’ll put those aside for now.