This Excel feature is robust and allows you to perform everything from relatively simple What-If projections to highly sophisticated scenarios.
What if you could change your life by making a few simple changes? In this article, we’ll explore some What-If concepts that can help you achieve your goals. ..
Making Basic
Projections
In this article, I’ll explore the concept of projections and how they can be used to manipulate information. In particular, I’ll explore how projections can be used to influence public opinion.
What if I increased my taxes by 10%? This projection will show that the business’s bottom line will be affected by increasing their taxes by 10%.
The two other significant concepts are Goal Seek and Excel’s Scenario Manager. With Goal Seek, you try to project what has to happen for you to achieve a predetermined objective, such as, say, making a million-dollar profit, and Scenario Manager allows you to create and manage your own collection of What-If (and other) scenarios.
The Data Tables Method – One Variable
To get started, let’s create a new table and name our data cells. Why? Well, this allows us to use names in our formulas, rather than cell coordinates. This can be useful - much more accurate and specific - when working with large tables, as well as some people finding it easier. ..
In any case, let’s start with one variable and then move on to two. First, let’s consider the role of genetics in weight gain or loss. ..
Column 1: Name Column 2: Age Column 3: Gender Column 4: Address Name Age Gender Address
Merging cells A1 and B1 creates the table title in Row 1. ..
In the Name dialog box, enter B2 into the text field and click OK. Now right-click cell B3 and choose Define Name to bring up the New Name dialog box. In the Name dialog box, enter B3 into the text field and click OK.
As you can see, New Name is straightforward. As for the Scope drop-down, this lets you name the cell relative to the entire workbook, or just the active worksheet. In this case, the defaults are fine.
To rename a cell, first click on the cell you want to rename. Then, in the menu that appears, click on Cell Tools > Rename. Type in the new name for the cell and press Enter. ..
If you click any of these cells, the name of the cell is instead shown in the Name box (outlined in red below) in the upper-left corner above the worksheet.
Sales_2019 = 100% Growth = (Sales_2019 * 100%)
To get different answers based on varying percentages of growth, when we finish the spreadsheet, you’ll simply change the value in cell B3 (now, Growth_2019). But I’m getting ahead of myself. ..
The formula in C5 is used to calculate the average of two values. The first value is the lower value and the second value is the higher value.
When you finish entering the formula, you should get the projected number in cell C5. You can now project your sales based on a percentage of growth by simply changing the value in cell B3.
If you want to change the value in cell B3 to 2.25%, try changing it to 2.25% first. If that doesn’t work, try changing it to 5%. Are you getting the idea? Simple yes, but can you see the possibilities? ..
The Data Table Method – Two Variables
In a world where all your income is profit, our spreadsheets would be much more rosy.
Our projections also need to take into account your expenses. In other words, your projection will have two variables: income and expenses.
Now that we have a variable to track, let’s add another column to the spreadsheet. This column will be called “Date.” We will need to enter the date in the text field of this column and then click on the “Add” button. The Add button should now appear in the bottom left corner of the spreadsheet. We will need to enter the date in the text field of this column and then click on the “Add” button.
Expenses 2019
Expenses_2019
C4 = (5 + C3) This formula will result in a new number, C4, that is 5 + 3.
C5: Modify the formula in cell C5 as follows (add *Expenses_2019 at the end of the parenthetical data.) C5: The cost of goods sold in 2019 is $123,000.
In a recent article, I explored how data can help you create what-if scenarios in your business. By including data in your scenario writing, you can create more detailed and realistic plans that are more likely to happen.
In any case, now you can make projections from two perspectives, income (Growth) and Expenses. Go ahead and change the values in cells B3 and B4. Plugin your own numbers and give your little What-If worksheet a spin.
Additional
Studies
If you want to explore what would happen if a certain event or change occurred, you can use the What-If Analysis feature in Excel. This tool allows you to explore different scenarios and see what would happen if a certain event or change occurred.
- What if the Earth’s climate changed suddenly?
- What if a pandemic swept the world?
- What if a natural disaster struck?
- What if humanity discovered new extraterrestrial life forms? ..
This well-illustrated how-to looks at, among other things, Excel’s Scenario Manager, where you can create and manage your own collection of What-If (and other) scenarios. Introduction to What-If Analysis: Here’s the Microsoft Office Support site’s introduction to What-If Analysis. There’s lots of information here with links to a slew of useful What-If instructions. How to use Goal Seek in Excel for What-If analysis: Here’s an introduction to Excel’s Goal Seek feature.
