Hey, guys. Alonso here on this Panopto, I will show you how to do some basic Excel for your budgeting exercises.

So let's get into it. So first things first, Let's just start by remembering what Excel is and how does it work.

All right. So, every time you will open a new document, you will see this, which is a sheet or a workbook.

All right. So and in these sheets, as you can see here, we have like, cells.

All right? And each of these cells are organised in two axis. A horizontal axis represented by letters and a vertical axis represented by numbers.

All right, So in Excel, we can either digit in these cells, we can either digit number, a letter or a code or formula or a symbol.

You may say, okay. And symbols, symbols are the way we are going to communicate with a program.

If you want to learn a little bit more about symbols into formulas, we will be using into this exercise.

Take a look at this, there you go.

These are the formulas that we will be using today. And I would highly recommend you guys to understand how these formulas work.

As you can see here, every single time we feed a formula to a program, we need to start it with an equals symbol.

The equals symbol at the beginning in the cell. Will let the program know that we are about to code a formula.

So now the basic formulas that all that I showed you will be necessary.

And they're really basic is just adding and subtracting, multiplying and dividing.

But in order for you to create your own budget in Excel, you will need, of course, information first to back all our projections.

Right. And this information, which will depend entirely on the product or service that you will be developing for your eSport pitch.

And you can find all this information by using reliable sources on the Internet.

So take your time. There is, however, some necessary information that we will need to research before we even start our eSports budgeting.

Like, for instance, we will need the total market value.

No. Which, by the way. This tool right here.

If you click in between two cells, this line with arrows will show up.

And with that click and drag, you will be able to extend or expand the cells that you're working in.

All right. Those are really handy useful tool for you all to have.

So we will need like total market value of the service or the product that you will be pitching.

And for example, if I want to create, let's say, a new keyboard, I would take a look for like total market value of keyboards.

Right. And important thing that we will need to find out will be like market share, which is basically just how much money.

Right. It is basically just, um.

What is the percentage? That you will be acquiring on this market.

So this is recommended, of course, for you guys to be conservative or even pessimistic since our products are new to the market, ideally.

Um, and I think a conservative approach would it be for you to get from 0.001% to 1%, depending on your product campaign strategy investment

It's entirely on you. But try to be reasonable.

Another important thing that we will need to consider will be the price per unit.

And again, we can find this. We can try to find the average selling price for our products or services that are similar to ours.

So we can use the Internet for that. And then we will need our cost per unit.

And on this situation specifically, look for that percentage of the price that the costs represent in the product or service that you are offering.

And finally, we will need to learn about our sales tax or GST in New Zealand skates.

I'm just going to put tax in here. Tax and of course, attribute values to it.

Correct. So let's get for a second that my total market value is, let's say $50 million, right?

My market share. I am aiming for it to be let's be conservative and I'm going to put it like 0.01% of the total market value.

Our price per unit, um, let's put it like 50 bucks, like a game, like a new game.

And our cost per unit would be if we do a research,

let's say that the cost per production on the unit, it is approximately 70% of the price of the unit.

All right, so it's but 70% of the price of the unit.

If we want to like, of course, have this specific cost per unit, we just need to multiply the percentage per pair the price for the units.

Right. So it's just equal and we multiply and we have that our cost per unit is $35 on the 50.

And then I think that tax in New Zealand 15%.

Then again, we are not we haven't started yet with our budgeting, but we are making sure that we have these numbers clear.

All right. If we know that our market share is 0.01%, that means that the value of it is again,

total market value multiplied by the percentage of the market that we are trying to acquire.

What is it? Okay.

Yeah, There was an issue here, so remember to use commas instead of thoughts sometimes that are dots, sometimes are commas.

So make sure you take those out. But anyhow, after we have this, just make sure that all the answers are that correct value.

Let's organise this a little bit. So this total market value, it's in US dollars.

So if we right click on a cell, this small window will open up and here we have like several tools that we can use into cells and for accounting,

which is the thing that we're doing right now, we'll make sure to select English or United States dollars.

You can select, of course, a Kiwi dollars as well. That is completely up to you.

In this case, I will be using USD price per unit again.

This is in USD, so let's do the same. And rest or goes for sale and tax.

Okay, cool.

So if we have if we have the market share right, which is how much money we're expecting to get basically on this year and we have the price per unit,

which is the sale price of our units, Can we figure it out, The total number of sales as a unit, What's unit number sales. I think we can, can't we?

So this equals to the total market share, divide it into the price of our units and we have, we have a total number sale of 100 units.

Cool.

Cool. All right.

So now we have everything that we need, every information that we need in order for us to continue with our budgeting or start with our budgeting.

Of course, like I mentioned before, besides our formulas, there's a couple of key things about Excel, that are really useful.

It is an amazing way to organise information.

So as I show you before, they make sure that all the sales have the proper number or the monetary value or the percentages.

Remember that you can do that either clicking on the cell, then right click.

So it's left click on the cell, then right click and select the value of the cell.

Or you can click and drag and select all the different values from all the cells that you're choosing, Right?

Cool. So now what do we need?

First things first, we're going to start accounting for production, and we're going to try to separate everything.

Production. And in here we have total units sold, unit units sold, and we have find out that is 100, right?

So we don't need to type it in again. We just need to hit equals and then copy the cell that we want and immediately we'll get the number in there.

All right. Then we have our cost structure per production, which is already have the unit sold.

So now we do like a little separation and we type in price per unit and total sale price per unit and total sales.

Okay. And we have that because we have the price per unit, which is again by our research, $50.

Correct. And we have the total number of sales which is, which are the units sold, which is hundred.

So we can have hundred times.

50 equals 5000.

Right. So that's our total number of sales.

Then what do we need to do? Then we need to put our costs.

Cost per unit in total costs. Cost per unit and total production cost.

Okay. We have that our the cost of our units are 70% of that 50, which makes it like those that 35.

So we can just click on the cell that we did the math on 35 and we have the total cost

of production of course will be like the cost per unit times the number of units sold.

Correct. So it's. Now we have our total production cost.

And then in order for us to identify and calculate our gross profit, which is just the.

Result from the sales that we have been. The result were sold off subtracting that cost from the sales.

So it's basically total sales minus the total production costs.

And then we have our gross profit. And then we have our expenses in here.

You can put everything that is related to the costs that are not production related.

So that means, for instance, like any sort of menstrual fee for internet, any sort of rent, things like rent.

Let's say some labour not specifically related to production, but let's say some labour.

Let's say that transportation or storage.

Right. Now let's invent numbers here. That's sort of changes a little bit, a little bit better.

Like 50 millions is not going to cut it, for our example. So let's say that our value is one more zero.

Now we're looking at it a little better. So we have our gross profit, $15,000 with a market share there.

We have 0.01%. That is a little too shy.

Let's change that for. Let's change it to 0.1%.

What if we didn't change it for 0.1%? There we go.

Now we're talking to, like, a big difference How?

0.1 0.01%. All right, Perfect.

So as you can see, we don't need to modify anything like this.

These are made by simple formulas.

So in order for you to change a thing or you missed your calculations or you had, like, any sort of information wrong,

just go again to your numbers, change these numbers and they will automatically be updated on your business structure formulas.

Anyhow, let's let's think about for a second.

Let's say expenses. Let's say rent equals and let's say that we paid $1,000 a week for the money that we're getting, let's say.

So it's like a thousand times four times 12.

Let's say that Labour we are hiring someone that helped to help us for $50,000 a year.

Or you can do you can you really, to be specific with this, right.

Later on on your business structure transportation, let's say that between gas and depreciation from your vehicles, you get like five grand.

And then storage. Let's say that we we use that certainly that we because we maybe use the rent,

the place that we're producing to storage or units let's delete the for a second unnecessary.

All right. So after we have found our gross profit, we subtract the expenses and then we'll get our operative profit,

which would be, of course, the subtraction of all the expenses with our gross profit.

So again, equals our gross profit or B 17 minus, and we can click and drag all the different negatives, right?

Let me change this for a second. And let's look at everything up.

on our expenses Let's say in here.

But all expenses. And it's going to take this first for it to be a little bit more organised.

So all expenses will be just to drag folds.

If we want to add. So show you. It is the sum of.

Okay, cool. 103. Later on, we will change this.

We can do it now. Of course, we just do English and states can.

For my technician in the States. Cool.

And now we just need our operative profit, which would be the subtraction of the total expenses to our gross profit.

Okay, Our operating profit is 47,000. And this is.

Before Taxes. Now we need to find out our.

It would be like our profit. Now we have, like, extraordinary.

There's just accounting guys. Sorry. We have, like, extraordinary income or expense.

We will not use this don't worry. And now we have comparative.

We have profit before taxes. Profit before taxes.

Which in this case, of course, will be the same. I will not ask you guys to do this, but you'll be the same as our operative profit.

And then we have taxes, which is the GST, and that's 15% almost taken.

So we need to equals. We need to multiply our profit before Taxes times the tax.

Four Texas times our Taxes.

Perfect. And then in order for us to find out the final.

In order for us to find the final revenue, it will be just that the deduction of the taxes from the profit before taxes.

It's. GST and this is our here revenue for our product.

How cool is that? Now let's make sure to organise this in a way that it is visually appealing.

I'm going to grab everything. We're going to go to insert and we're going to go to tables.

We're going to hit. Okay. Now we're going to have this.

That way we have everything organise, which is good. And then we're going to highlight all the important cells which are basically total sales.

Going to make sure to highlight those, we are going to highlight total production cost we are going to which by the way, this needs to be in dollars.

Good. We are going to highlight.

Total expenses. Operative profit.

Profit before taxes and revenue.

And this way we have our own budget for the year with the projection of having a 0.1% market share.

How cool is that? And check this out.

If you want to change this. Let's say that is in this scenario, right?

If you want to change this, let's say that this is a pessimistic scenario.

If you want to change it to a really optimistic scenario,

the only thing that we need to do in order to that is just change this number instead of making it one, let's make it five.

And see how automatically will change all the numbers in your tables.

That way, whenever you're presenting your information, you can have different scenarios with different market shares.

Right. A pessimistic scenario can be like the 0.1%.

Right. You copy paste this like this. Then you have a realistic scenario which is 0.25%, and then you have optimistic scenario with 0.5%.

Of course, explaining why you think that it will be that percent.

That's right. And it will automatically change for you guys.

That's it for me. Hope you guys enjoyed.