Part 4: We're ready to start building a model

A note on how this section of the book works.

We're finally ready to start building a model.

Financial modelling is a skill that only gets better when you practice it.

I, therefore, want to make it easy for you to "model along" with each section of the book.

Each of the sections in this part of the book will therefore work as follow:

  1. There will be a "start model" available for download at the start of each chapter.
  2. We will refer to the section of the case we are modelling.
  3. I will share some notes about the steps in modelling this case section. My notes will regularly reference the Core Modelling Skills from Section 2. So, for example, when we need a new Corkscrew, I'll say, "Add a new corkscrew (Core Skill 8)". You'll be able to refer back to that skill.
  4. I will share an "End model" with all the modelling complete for that section.

If you want to practice, your process each chapter should be:

Step 1: Download the start model

Step 2: Read the part of the case we are modelling.

Step 3: Have a go at modelling it yourself.

Step 4: Read my notes on modelling this topic.

Step 5: Update your model if needed. Compare with the End model for this section.

We’re going to begin with the Start Model and look first at adding the core financial statements plumbing.


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