Building an Operating Model
Learn how to build a dynamic financial operating model in Excel from scratch just like the investment bankers do it. We make it super simple by taking you step by step through each line using the example of a lemonade stand.
Meet Your Instructor
Strategy & Analysis, Netflix
Nihaar has built a career at the intersection of finance, strategy, entrepreneurship, and Media & Entertainment. His experience includes working as Head of New Business Development for Sean 'Diddy' Combs, in the Content Strategy & Analysis Group at Netflix, and in investment banking. Nihaar holds a B.S. in Finance from the Wharton School at the University of Pennsylvania.
Understand what a financial operating model is and what attributes make for a good one.
02 Why You Need an Operating Model
Learn why operating models are critical for making more informed business decisions.
03 Revenue and COGS Assumptions
We take you step-by-step through the assumptions section of your model, focusing on the inputs and structure that will drive the revenue and cost of goods sold components of the income statement.
04 The Income Statement Part 1
Begin assembling your income statement by connecting it your revenue and COGS assumptions. Then build out the assumptions that will drive your operating expenses.
05 The Income Statement Part 2
Finalize your income statement by connecting the operating expenses section, identifying capital expenditures and filling out the the depreciation and tax lines.
06 The Balance Sheet
Finalize your model by connecting your balance sheet to your assumptions and income statement tabs.