Applying the Pareto Law for forecasting
So with an understanding of the power law in its concept, does anyone know of an excel formula or model for figuring out what level of growth is needed by the 20% to break-even?
the numbers to consider:
I have written 50 checks for $100,000
Suppose 40 of them collapse to 0
suppose 8 of them have a 5x exit for me
What would the other 2 need to reach as exit value to maintain breakeven, and then growth?
What should i be considering in my model for this question?
Is this something that can be easily modeled in excel? Has someone put something like this together?
the numbers to consider:
I have written 50 checks for $100,000
Suppose 40 of them collapse to 0
suppose 8 of them have a 5x exit for me
What would the other 2 need to reach as exit value to maintain breakeven, and then growth?
What should i be considering in my model for this question?
Is this something that can be easily modeled in excel? Has someone put something like this together?
