Chapter 3
Planning and Designing Your Financial Model
IN THIS CHAPTER
Determining and designing the problem that the financial model needs to solve
Looking at the difference between two courses of action using scenario analysis
Working with and extrapolating time series data
Structuring your models
Planning and design can sometimes be the most difficult part of building a financial model — especially for those of us whose skills are more technical and numerical than visual. When building your model, you need to pay close attention to the design layout and ensure that it’s clear, coherent, and logically structured. Even a very simple model can become complex if poorly designed, and a well-designed model will be so logical that it will simply speak for itself.
Before jumping in and starting to build the model, take a moment to think about what your model needs to achieve — this will help with the design build.
Identifying the Problem That Your Financial Model Needs to Solve
A financial ...
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