How Do I Create A Scenario?

Our scenario tool is a powerful way to see the effect changes in revenue and expenses will have on the cash balance. The basics are the same for each scenario you'll create.

  1. Click on the Scenario tab at the left of the page. 
  2. Select Add Scenario.
  3. Name your scenario. We suggest a short and easy-to-understand name - like ‘Hire A New Employee’ or ‘Change Payment Terms.’
  4. Select a colour that is different from the default teal.
  5. You can add a description if you like, but it’s not required. 

You’ll notice two scenarios listed now - Base Case and your new scenario. The Base Case scenario is your regular forecast. It’s recommended to treat your Base Case scenario as your default - the forecast representing the present-day situation. Each new scenario starts by duplicating your Base Case - thus, you will see the new scenario colour exactly overtop your base case cash balance graph. 

Note that the transaction graph is still the default teal, and underneath the company name at the top left, it says “scenario base case.” The scenario name and colour indicate which scenario is currently “open,” meaning any changes you make to the forecast will apply to that scenario.

Editing the New Scenario

  1. To select your new scenario, click on the name - the colour of the transaction graph, and the name will change.  Make sure that you have your New Scenario selected. 
  2. Open the Forecasting Rules drawer
  3. Make the changes to your estimates based on the scenario you are testing out.

You’ll see how the cash balance graph differs from the base case graph as you make your changes.

You can also add multiple scenarios to present options to your client or test out best and worst-case scenarios. You can include as many scenarios as you’d like - however, the more lines you add, the more complicated it will be to decipher. You can also hide scenarios from your regular view as needed or delete them if the scenario is no longer valid. 

Bonus: Helm co-founder Kelvin uses the scenario tool to compare what they expect to happen with the best and worst-case scenarios. He then explores what the impact would be if the company incents their client to pay early.

HubSpot Video