TRANSCRIPT
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Welcome back. Before we get started then on building the Financial Model, let's cover
five different things in terms of instructions that will get you set up for success in this
fundamentals of Financial Modeling video series.
Number one, we will be working in a Microsoft Windows based environment and using Microsoft
Excel as our primary build software tool. That matters because if you're working in
separate environments, it may look a little bit differently than the way that it shows
on my video. And while you'll be able to pause the video and go and look at external sites
to see how does that maybe look in a Mac environment, say, as opposed to a Windows environment,
it will be accessible to you, but it may be a little bit different in terms of how you
interact with the videos and the software to build the model.
The second thing then, if I was you, the first thing I would do is go out and access the
case study and give it a good read through. You'll learn all about Derek Milenko and
his Brilliant Beginnings company that we'll cover a little bit more when we get to video
number three. Once you have that case study in hand then, you need to make a decision.
Are you going to, number one, decide to build this completely from scratch, just based off
a brand new blank sheet in Microsoft Excel? This will give you a greater challenge and
a more real life view of how models are built from the bottom up. If you don't feel like
that is a challenge you're ready to undertake now, the other thing you can do is access
the template that has been built and provided for you as part of this video series. In that
template you'll see things like the sheets have already been pre-constructed, with column
widths set up, with all of the words typed in for the line items and the accounts, as
well as headers and footers and the tab names, and so it's a great starting point if you
just want to focus in on building the formulaic structure of the model.
After you have those things in hand then, the case itself, Microsoft Excel, and then
maybe the template if you want it, your responsibility will be to sit down and watch these videos
which are intentionally constructed to be small, bite-sized chunks, no more than five
minutes, and designed so that you can stop, pause the video, look to see what is being
done on the screen, and then replicate it in your own environment. Lastly, you are also
provided in the case study with a series of appendices, one showing you the answers for
your Baseline set of Assumptions, and one showing you the answers for the Optimistic
optional set of Assumptions, so that you can see whether or not what you're building matches
what we built when we built these videos for you. In the next video then, we'll go over
the case study in more detail so you can have some context of how Derek Milenko plans to
use a fundamental Financial Model to help drive Brilliant Beginnings next steps. We'll
see you there.
35 segments