Flexibility – three basic guidelines
We all want our models to remain flexible so that we can continue to update them and use them going forward. Lack of flexibility is a major cause of frustration and excessive maintenance of the models and is the primary reason a model needs to be rebuilt after some time.
Here are three basic tips for keeping your models nice and flexible:
- Never hard-code numbers (put a number in a formula/calculation that can be referenced instead)
- Keep assumptions separate and well organized
- Spend time up front thinking about what you might want to be able to change later
-For example: number of years, market growth, market share