# Scenario Planning
## Overview
By creating multiple contingency plans, businesses can strategize for potential outcomes and adapt accordingly. This feature proves invaluable in diverse scenarios, such as the following.
* Analyzing best and worst-case scenarios for sales growth to manage cash flow effectively.
* Crafting A/B/C plans for fundraising to align spending and hiring strategies with fundraising outcomes.
* Conducting sensitivity analyses on metrics like churn rate or growth rate to gauge their impact on the financial runway.
* Planning for aggressive hiring quarters to understand their immediate impact on burn rate or financial runway.
### Creating a Scenario
Initiating scenario planning involves ensuring that the main financial plan is set up on the Main Scenario.
This Main Scenario serves as the baseline or most probable scenario. Subsequently, additional scenarios can be created by navigating to the Financials page, clicking the dropdown arrow under Main, and selecting the "+" sign.
A window will prompt users to name the new scenario and specify the scenario to copy from, with the default being Main.
Once named, users can select Add new scenario to finalize the new scenario.
### Switching Between Scenarios
Lucid Dreams offers multiple methods to switch between scenarios.
### Navigation Bar
* Utilize the dropdown menu in the upper left corner of the interface to access, edit, or delete scenarios.
### Financial Report
* Switch between scenarios within the Reports section for analyzing reports or setting up fixed forecasts by clicking on the Main field above the Financial Report header.
### Hiring Plan
* Quickly switch between scenarios when planning future or existing hires.
### Models
* Easily review scenarios within any model by navigating the table outlook below the Inputs, Formulas, and Output columns.
### Merge/Sync Button
* Use the sync icon to bring in new data from the Main Branch to all scenarios, ensuring consistency across variables.
## Additional Tips
* Utilize the sync button to bring in Actuals to all scenarios after month's end.
* Delete and recreate scenarios if significant changes are made on the Main branch to avoid overlooking variable changes.
* Note that changing a variable in a model will halt future merging from the model altogether.
* Promote a scenario to Main by clicking on the gear icon next to the scenario name and selecting "Promote to Main" to replace the Main/Expected case with a scenario that occurred.
### Scenario Comparison
After creating multiple scenarios, users can compare them through the Financials or Dashboard page:
### Financials
* Easily compare scenario runways and forecasts by switching between scenarios on the Financial Report.
### Dashboard
* Add different scenarios on the dashboard or build standalone dashboards for specific scenarios to compare metrics such as bank balance, revenue, and expenses.
Overall, scenario planning can be a critical tool in reforming raw financial data into actionable insights!
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