Did you know that you could predict your annual income with a spreadsheet? Spreadsheets are awesome! I remember a long time ago when I discovered the power of spreadsheets and realized what they could do. Entrepreneurs often have unpredictable income, which could leave one feeling like you don’t know where your money is going to come from. That doesn’t feel good to anyone. Instead, predict your annual income with a spreadsheet!
First, What is a Spreadsheet?
A spreadsheet simply has rows and columns. It’s a table that never ends. You can continue to add rows and columns and you never run out! Everyone had to create some basic tables when they were in grade school and high school. Remember, it was typically Science class that required you to do that to track the data from your experiments. It could also have been math class where they showed you tables of data and you had to analyze and find the averages or the means or ranges. All that fun stuff that 5th graders now learn!
The benefit to electronic spreadsheets are that you can put in formula’s that allow you to repeat calculations over and over again. For example, you could do analysis on the impact to your income if you raised your hourly rate by $5 or $10, etc.
What Spreadsheet Tool Should I Use?
There are 3 major spreadsheet tools available. The one that has been around the longest that you hear the most about is Microsoft Excel. The other 2 are Google Sheets and Apple Numbers. Unless you are attempting incredible complex formulas and calculations, any of the three will do the trick for this exercise. Microsoft Excel has the most formatting options as it has matured over time, while Google Sheets has the least.
Anyone can use Google Sheets for free if you have a Google account. If you have an Apple Computer or iOs device, then you have access to Apple Numbers for free. Microsoft Excel is included as part of the Microsoft Office packages, so if you have Microsoft Word or Powerpoint, you probably have Microsoft Excel.
How do You Build a Spreadsheet?
There are many, many templates available on the web if you search for what you want and then put template or example behind what you are looking for. You can simply download them and give them a try. In the video below, we will build a spreadsheet that allows you to predict your annual income based on your services and classes you might be teaching.