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VIDEO TRANSCRIPT

This is Neil Portus from Tailored Partners. I work as a freelance CFO for growth companies and I wanted to share what I think is the most powerful, most valuable Excel formula right now during Covid-19:

And that’s the =CHOOSE formula.

So, this video is for startup founders and business owners to show them how they can take their existing Excel budgets and models and by adding in the =CHOOSE formula to their key drivers & their key assumptions model out different revenue and expense scenarios in order to see the impact on the bottom line and make important planning decisions for their company. All in about a minute. Let’s dive in.

Ok, here’s a simple profit and loss statement down to operating income. I’m going to paste in the three scenarios I want to test. I’ll start entering my =CHOOSE formula. The first cell reference will be the one that we will use the toggle between the three scenarios. I’ll lock in that cell reference by hitting F4 which puts those two dollar signs there. You’ll see that I’m using the =CHOOSE formula for each key driver in this model: number of units sold, price per unit, cost per unit & each of the key operating expenses. No need to do every possible input; just focus on the important ones that drive the model. Also, you can have as few or as many scenarios as you want just separate each one with a comma in the formula. I’ll copy this formula down to the rest of the operating expenses and make all these fonts black now that they’re formulas.

Now, we are ready to toggle between our three scenarios to see the impact on operating income.

 

Copyright 2020 Neil Portus | Please see our disclaimers.