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Creating an Online Business

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  1. Identify Skills
    7 Topics
  2. Conducting Research
    5 Topics
  3. Online Stores
    5 Topics
  4. Making a Flyer
    7 Topics
  5. Managing Expenses
    7 Topics
  6. Survey Customers
    8 Topics
Lesson 5, Topic 6
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Use Visual Cues to Identify Low Stock or High Costs

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For business owners, it is imperative to have immediate awareness of potential financial issues, such as excessive spending or dwindling inventory levels. Conditional formatting in spreadsheets is an invaluable tool for this purpose, as it visually highlights problem areas, making them easy to identify at a glance. For example, if certain items are incurring higher costs than they are generating in sales, or if more products are sold than are available in stock, these issues can be quickly addressed to prevent financial losses. Conditional formatting alters the appearance of numbers or text in spreadsheet cells based on specific conditions. In the given scenario, numbers in the “Profit” column are turned red when they are negative. Start by selecting the numbers in the “Profit” column and applying conditional formatting. Ensure that the cell range you’ve highlighted appears in the conditional formatting window; if not, click the “range” box and highlight the necessary cells. Set the condition for the formatting to trigger by entering “less than” and “zero.” Afterward, choose a formatting style that changes the color of the cells.

The same conditional formatting technique should be applied to the cells in your summary table to monitor whether your overall expenses are within acceptable limits. Additionally, apply this formatting to the “Current Stock” column to immediately spot if you have oversold a particular item. This function is particularly useful in managing inventory, as it provides a clear visual indication of stock levels. Moreover, the conditional formatting can be adjusted to activate for numbers above zero, which is helpful if you face challenges in quickly restocking or producing new items. By using these conditional formatting tools, you can efficiently keep track of key financial and inventory metrics, enabling you to make timely and informed decisions for your business.