Creating a scenario in Excel is relatively simple, but can be time-consuming depending on the complexity of the project. You must first enter the data necessary to create a realistic scenario. This includes all relevant information about your company’s current and future financial and strategic goals, as well as any external factors that may have an impact on future outcomes. Once this is done, you can use various tools within Excel to forecast outcomes based on different scenarios or variables. These tools include pivot tables, data tables, and goal seek. While spreadsheets are certainly a valid tool for scenario planning, it is important to be aware of their limitations. This is especially true as companies scale and their needs and complexity increase. One such limitation is the potential for errors due to manual data entry. Because spreadsheets rely heavily on human input, they are prone to mistakes, which can lead to incorrect assumptions and projections. Spreadsheets in complex scenarios can be challenging. When dealing with large datasets spread across numerous tabs, it can be difficult to keep track of all variables and ensure that everything is working as intended. Plus, they can be somewhat limited in terms of collaboration capabilities.