Overview

The Models feature in Lucid Dreams is a powerful tool for creating and managing financial projections and scenarios.

It allows you to forecast future financial performance based on different sets of assumptions and inputs.

By using Models, you can simulate various business scenarios, understand potential outcomes, and make informed decisions about your financial strategies.

Interface and Options Walkthrough

The Models tab in Lucid Dreams is designed to be intuitive and user-friendly, offering a variety of options and functionalities to help you build comprehensive financial models. Here's a detailed walkthrough of the interface and its key components.

Revenues

Add a Revenue Input

• Click on 'Add a input' under the Revenues section to input various revenue streams. This can include product sales, service fees, or any other income sources.

Rename Revenue Inputs

• Easily rename any revenue input to better reflect its source or category by clicking on the existing name and typing the new name.

Move Inputs

• Organize your inputs by moving them to another model if needed. This can be done by selecting the input and choosing 'Move to another model.'

Clone Inputs

• Duplicate an existing revenue input to quickly create similar revenue streams with minor adjustments by clicking 'Clone.'

Inputs

Add Inputs

• Besides revenue, you can add other financial inputs such as cost assumptions, investment inputs, or any other relevant financial metrics.

Rename and Delete Inputs

• Manage your inputs by renaming them for clarity or deleting those that are no longer relevant.

Calculations

Add a Calculation

• Create calculations to link various inputs and generate meaningful financial metrics. Click 'Add a calculation' and enter the formula you need.

Edit and Manage Calculations

• Modify existing calculations or delete them as your financial model evolves.

Outputs

Add Outputs:

• Define the outputs of your model, such as net income, cash flow, or any other key financial indicator. Click 'Add an output' to specify what you want to measure.

Visualize Outputs

• Use outputs to create visual graphs and charts, making it easier to interpret your financial data.

Model Management

Rename Models

• Keep your models organized by renaming them to reflect their purpose or the scenarios they represent.

Delete Models

• Remove outdated or irrelevant models by clicking 'Delete.'

Clone Models

• Duplicate an entire model for scenario analysis or to create a similar model with different assumptions.

Move Models

• Reorganize your models by moving them to different categories or groups within Lucid Dreams.

How to Use the Models Feature in Lucid Dreams

Creating a New Model

• Navigate to the Models tab and click on 'New Model.'

• Name your model to reflect its purpose, such as 'Q3 Revenue Forecast' or 'Worst-Case Scenario.'

Adding Inputs

• Under the Revenues section, click 'Add an input' to input your revenue streams.

• For other financial metrics, use the Inputs section to add cost assumptions, investments, or any other necessary data.

Defining Calculations

• Use the Calculations section to create formulas that link your inputs. For example, you might calculate gross profit by subtracting the cost of goods sold from total revenue.

Setting Outputs

• Define the outputs of your model, such as net income or cash flow, under the Outputs section. These outputs can then be used to create visual representations of your data.

Managing Your Model

• Rename, clone, or delete models and their components as needed to keep your financial planning organized and up-to-date.

• Move inputs or entire models to different categories to better structure your financial projections.

Practical Example

Imagine you want to forecast your company's financial performance for the next quarter. Here's how you might use the Models feature in Lucid Dreams:

Creating a New Model

• Name it 'Q3 Financial Forecast.'

• Add Revenue Inputs:

• Add revenue streams such as 'Product Sales' and 'Service Fees.'

  
• Input Cost Assumptions:

• Add costs like 'Marketing Expenses' and 'Operational Costs.'

  
• Define Calculations:

• Calculate Total Revenue by adding Product Sales to Service Fees.

• Calculate Operating profit by subtracting expenses from Total Revenue.

  
• Set Outputs:

• Define outputs such as 'Income' and 'Expense'

  
• Visualize Data:

• Create graphs to visualize how different assumptions impact your financial outcomes.

Using the Models feature in Lucid Dreams, you can create detailed financial projections, explore various scenarios, and confidently make strategic decisions.