Spreadsheets have been around a long time before software programmes were invented because they are simply a series of columns and rows on a sheet of paper.
When spreadsheets were done manually there was far more thought put into them BEFORE starting because they were much more difficult to change and adapt along the way.
With the advent of programmes such as Microsoft Excel, users have been given far greater flexibility which makes it much easier to add a row or column.
As a result many spreadsheets are developed ‘on the run’ with very little planning before starting the development.
While this is great in a brainstorming sense, if you are developing something specific like a sales spreadsheet it pays to give some thought to the overall development BEFORE you start so that you end up with a well thought out and useful spreadsheet.
Here are 5 Simple tips which can help you do the planning necessary to develop a decent sales spreadsheet.
TIP 1
What’s the context for this spreadsheet?
In a sales environment it is very easy to think that all customers are alike and every time you report on customers you need to look at your whole business. This is not necessarily the case and you may want to look at only the top customers in your business. This will change the overall layout of your spreadsheet and allow you to focus the value of the sheet to more specific information.
TIP 2
What’s the purpose of this spreadsheet?
This may be a spreadsheet where you’re trying to look at sales by product or conversely you may be looking at sales by customer. These two different purposes will determine the type of information that you want to include in the spreadsheet. If you don’t define this upfront then the spreadsheet can become cluttered with lots of useless data which adds nothing to the value of the spreadsheet
TIP 3
What controls should I build in to make sure the information is correct?
In developing a spreadsheet you need to think from a programming point of view to get the maximum value out of your sheet.
There are lots of options for including self balancing items to self check any errors in your spreadsheet.
A good way to do this is to decide what you’re balancing to. I see many sales spreadsheets that don’t balance to anything and in these circumstances you could enter incorrect information and never be aware of it.
At the most basic level, you should decide what overall number for sales that you’re balancing to and include that as part of the arithmetical calculation in the spreadsheet.
TIP 4
Who are the readers of this information?
Spreadsheets that are developed for an audience of ONE can be developed in whatever format you like but those that are developed for the purpose of distributing valuable information need to be developed with the audience in mind.
Questions you might like to ask yourself would include:
- What position do the readers hold in the business?
- How much time do they have to look at sales information?
- What would they be looking for from this spreadsheet?
TIP 5
How much detail should be included?
Over the years I have developed literally thousands of spreadsheets which have included detailed sales information right through to consolidated financial information.
The question of detail is always the hardest because there is a natural conflict between swamping the reader with information and leaving valuable details out which might jeopardize the overall picture. I believe that using the concept ‘Less is More’ is extremely valuable in dealing with sales information.
This allows the readers to quickly get to the essence of the spreadsheet and keep a focus on what you’re trying to communicate within a defined context.
What’s your experience with sales spreadsheets?
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