How to test different scenarios.
If you want to test a scenario, you can easily use the toggles to help test a scenario. I recommend running a scenario using the following example.
Scenario Example: Should I hire an employee?
Step 1: Make sure your forecast is spot on.
If you want to determine what you should do as the CEO, you need to first make sure all other variables are accounted for and fixed. This simply means that your forecast is up to date and not missing any critical information.
Step 2: Add your employee and the accompanying benefits.
Step 3: Add additional revenue your company will make because of the new hire.
Always remember, if an employee helps the company make another $10,000 that doesn't mean his or her value is $10,000. You need to remember your margins. If the new employee increases your company revenue by $10,000 but your product/service costs are around 50%, then they are only bringing in $5,000. That $5,000 will be needed to pay for the employee and other fixed costs.
In order to add additional sales from your new hire, select "Service" then select "General." This will allow you to add basic revenue with accompanying variable expenses.
If you have only a couple products or services, you can also just add the same product as you have before and just title it, "new employee revenue" so you can identify that it will come from your new hire.
Step 4: Account for increases in fixed expenses.
You may have costs to train a new hire. Providing a drug test, HR paperwork, and a host of other possibilities all can increase the cost of this employee. Make sure you look over the next few months and years to determine if this is the right decision.
Step 5: Analyze and Test
After you have done this, I personally like to toggle every toggle off for my whole company if they aren't part of new expenses or sales for my new hire. Now I can look at this person as if they are their own business. After this, you will then be able to decide if this is the best decision.
After toggling off anything in my forecast that doesn't relate to my new hire, I looked at the next year. In this case the employee will provide some benefit to my business. I think I will have to hire this person as long as my predicted sales increases and expenses are correct. :)