What if the financial forecast you're betting your business on is doomed from day one?
In this eye-opening episode, we sit down with Jon Morris, who transformed a $10,000 business plan win into Rise Interactive, scaling to $40 million before selling. Now at Fiscal Advocate, Jon reveals why 73% of startups fail due to poor financial planning and shares the brutal truth: we all suck at predicting the future. Discover why lofty goals actually give your team permission to overspend, the industry benchmarks that separate winners from losers, and the three KPIs that matter more than your entire spreadsheet. This isn't about creating perfect projections—it's about building a financial strategy that keeps you alive when reality hits.
The hard reality is that every forecast becomes obsolete the moment you create it. A new client signs, an employee quits, expenses shift—your carefully crafted projections crumble. The solution isn't better crystal ball gazing; it's smarter planning with regular updates.
Most founders fall into two traps: setting unrealistic goals that justify reckless spending, or being so conservative they miss growth opportunities. The answer lies in understanding your industry benchmarks. For service companies, that means targeting a 50% gross margin and 20% EBITDA. When you know these numbers, you can identify exactly where to invest for growth without destroying profitability.
Smart founders focus on three critical metrics: cash relative to monthly overhead, profit margin, and growth rate. These numbers tell you everything you need to know about your business health and guide every major decision.
Remember, whether you realize it or not, you already have a strategic plan—it's what you spend money on. Make those spending decisions intentional by treating forecasts as commitments, not predictions. Use your most recent data to inform the immediate future, and adjust variables strategically when you want different outcomes.
The goal isn't predicting the future perfectly. It's building financial discipline that keeps you alive long enough to figure it out.
Watch the Full Episode on Financial Forecasting with expert Jon Morris below:
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