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Welcome back. Well, there you have it. You've now built your very first Financial Model.
How does it feel? It's fun to play with Excel and numbers and to try and think about how you
can use skills, tools, and critical thinking to assist a business in making strategic decisions.
Throughout the course of this 17-part video series, I hope you were able to walk away
with five different things. Thing number one, case and context matter. Before we could get
to build the Financial Model, we first had to understand what were the drivers of beginning.
Let's try and edit that. Thing number one, case and context matter. The first thing we did is we
understood how Brilliant Beginnings and Derek Milenko thought about their business, its place
in the market, and how they might be able to grow and achieve their strategic business goals.
Second thing I hope you learned is the importance of building the Assumptions page. The Assumptions
page is the key primary input into which we document everything it is that we presume may
happen in the market so that our Financial Model projections going forward will be as
accurate as possible given our expectations. The third thing that I hope you learned is how to
build a series of statements. You saw we did an Income Statement, you saw we did a Balance Sheet,
and you saw that we did a Statement of Cash Flows, and those things in totality helped us to project
our financial future. The fourth thing that we did is we built that Dashboard, which became that
visual indicator of how changes that we might make in our Assumptions could affect our future
Cash Flow projections either positively or negatively. We saw how in Baseline scenarios,
we could see significant change by upgrading our thinking to be more Optimistic scenarios.
And all of those things then helped us do number five, which was understand the importance of
dynamism in building a Financial Model so that as expectations and the marketplace changes,
you can be nimble in changing your Assumptions, seeing how those might impact your financial
future, and then providing the best counsel available to the operators of the business
who are looking to achieve their goals with your help. It's been my pleasure to lead you
through this video series on the fundamentals of Financial Modeling.
25 segments