An important tool in business risk management is the ‘What If’ scenario. These allow you to identify the possible risk to cash flow and profit of future market trends and therefore, to budget appropriately.
‘What If’ scenarios let you test the effects on profit margins and cash flow of the introduction of new enterprises into the business or, let you test changes to established enterprises, such as increasing livestock numbers or producing a new crop.
One of the best ways to test 'What If' scenarios in the budget or worksheet is to make a copy and test the changes on them. The copy will be exactly the same as the original but the names must differ (i.e. Copy of March Budget 2021 or Copy of Sheep Worksheet March 2021 ).
Continue to: Copying Worksheets & Full Budget