Dianne Zélie June 1, 2021 Spreadsheet
Lester loved his numeric universe, but this was not how he had envisioned his life unfolding; flying hither and thither from his hometown of Hershey to wherever his firm wished to send him. Just because he was 38, single, and still living with his folks didn‘t mean his employer should take advantage of him which, in fact, his company did on a regular basis. After all, Lester had other important interests, too. The ”Four Bs” he called them: Botany, bowling, bugs and Buddy Holly. Myriad plants crowded his tiny room in his parent‘s house, forcibly sucking carbon dioxide out of anyone who entered. Bowling trophies – ranging in size from tiny silver cups to massive bronze edifices shaped like the Empire State Building – claimed space not dominated by flower pots, planter boxes, and hanging baskets.
So why does data that inevitably finds its way into a Microsoft Excel spreadsheet often suffer from the problems outlined above. The reasons are many. If the data is imported, it may have been sourced from a combination of other spreadsheets, databases, systems, reports, word documents, emails or web pages. If the data has been entered manually it may have been poorly done so by an inexperienced computer users such as administrative or junior staff with a lack of understanding for data structures. Excel is easy to use and widely accessible, so an inexperienced colleague can quite easily update your spreadsheet with a false sense of confidence and inadvertently enter new data incorrectly. And finally, unlike a fully functional software system, data entry in Excel generally has no automatic validating rules, unless carefully setup by the spreadsheet‘s creator.
Angel Investors are typically much better investors for a long-term business plan that Venture Capitalists, although they do not come usually with the incredible network to help you succeed. Venture Capitalists are more interested in themselves and making money on their investment then what you get out of it or the future of the business with you in it. An angel investor is interested in you, the future of the business and the possibility of making a whole lot of money on their investment. Please consider all this when presenting your business plan to an Angel Investor.
In a well-designed spreadsheet, any output can be calculated from the raw data. However, that‘s not always enough. Sometimes the output is fixed and the raw data is variable. Let‘s say you run an investment company and want to offer your clients a fixed return. An Excel expert could create a very complex model to calculate the likely return on investments over a fixed period. You could then calculate the internal rate of return being offered to clients. The problem is that you‘re not interested in the return offered to clients; that is, after all, fixed. Instead you‘re concerned with how much money you expect to draw from the investment fund, whilst still offering your investors a satisfactory return. If you have $1 and owe investors a quarter, you can calculate your profits using a simple formula.
When presenting your business plan to an angel investor you must understand that they will be very interested in your spreadsheets and proformas, but you must also realize that it is typically an entrepreneurial optimistic approach, which causes problems with proformas. Therefore, you should have dueling spreadsheets; that is to say the spreadsheets, which take your best guess and double the time, double the expenses to compete with your optimistic approach. You should be able to present both of these to your Angel Investor; who chances are is a retired business person with a little bit of financial savvy.
It does have one severe limitation. Goal seek is not a formula. It does not permanently reside in the spreadsheet or the selected cells. Therefore you have to re-run Goal Seek each and every time you change the spreadsheet. Often this is acceptable because you have created a model specifically to calculate that one parameter. Having said that, there will be occasions where this is inadequate. What are the plans for your meeting or convention this year? Does it start with a budget or did you even do one last year? If you did one, did you do it the easy way with a Budget Spreadsheet for Meetings? Let us discuss your needs and see what forms and budgets can be facilitated the easy way. If approached correctly, you can cut your ”Hassle Factor” by more than half with the right event template.
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