Financial Modeler's Corner

In this episode of Financial Modeler’s Corner, host Paul Barnhurst dives into the evolution of financial modeling with guest Chase Wright. The discussion focuses on modern financial modeling tools and workflows, particularly a new spreadsheet tool called Equals, and how it compares to Excel and Google Sheets. Wright shares his journey from a finance background to working at startups, where he developed innovative methods to streamline financial operations using cutting-edge tools.Chase Wright is a seasoned finance executive with a decade of experience across startups and tech companies like GitLab, Instabug, and Red Hat. Currently the Head of Finance and Data at Uniqode, Chase has a unique blend of corporate finance, data science, and business management expertise. He’s also an advisor to Cacheflow and a limited partner at FOG Ventures. With an engineering background and deep experience in finance, Chase brings a fresh perspective on the challenges and innovations in financial modeling.Key takeaways from this week's episode include:How Chase Wright’s career journey led him to innovate in financial modelingThe role of modern spreadsheet tools like Equals in finance and data teamsHow to use tools like Equals to automate reporting and financial analysisThe importance of balancing curiosity and necessity when developing career skillsThe pros and cons of traditional modeling tools like Excel and Google Sheets versus newer alternativesHere are a few quotes from Chase Wright:“Equals is a modern spreadsheet for data and finance teams, connecting directly to your data sources.” - Chase Wright“Financial models are incredibly helpful, but at the end of the day, it's the intuition behind the model that really matters.” - Chase Wright“Slack integration in Equals makes communicating insights across the company incredibly simple.” - Chase Wright“AI in Equals acts as a copilot, making things like summing columns or adding borders incredibly intuitive.” - Chase WrightIn this episode, Chase Wright shares his journey from struggling with complex models in Excel to embracing the automation and connectivity that Equals offers highlights the growing need for more intuitive and efficient financial tools. He emphasizes that the right tools, combined with critical thinking, can not only improve workflows but also provide deeper insights that drive business success.Follow Chase:Website - https://www.uniqode.com/LinkedIn - https://www.linkedin.com/in/chasewright/Blog - https://medium.com/uniqode-secret-sauce/an-operators-guide-for-managing-your-saas-startup-s-cash-flow-c1dbfc3a1e71Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:45] – Introduction to Chase Wright and his journey[02:54] – The nightmare of VBA models and lessons[04:24] – Educational Path: Finance to Engineering[07:01] – Equals: The modern spreadsheet tool[15:13] – How Equals Simplifies Data Integration[20:02] – Financial modeling: Critical Thinking in Action[31:03] – Rapid Fire Segment: Excel and Equals [39:37] – Conclusion and Final Thoughts

In this innovative episode, Paul Barnhurst experiments with Google’s AI tool, Notebook LM, and transforms previous guest interviews into an AI-generated episode. He explores the insights and best practices in financial modeling, as shared by veterans Scott Rostan, founder of Training the Street, and Ian Bennett, a PwC Australia leader with extensive experience in managing large modeling teams. By leveraging AI, this episode explores how technology can recreate meaningful conversations with industry leaders, providing an interactive look at best practices, common pitfalls, and the evolving landscape of financial modeling. Paul explores advanced technical skills and the human elements that are essential to successful financial modeling.Key takeaways from this week's episode include:Four essential key pillars for excelling in financial modelingStrategies for maintaining simplicity and auditability in financial modelsEmerging tools in Excel and functionality of traditional financial modelingHow financial modeling expertise goes beyond technical skills Insights on the potential future of financial modeling with AI advancements Quotes from the Episode:"Even in the world of complex finance, sometimes the simplest approach is the best approach." - Scott Rostan"It’s about seeing the big picture, understanding your client’s needs and using your modeling skills to craft a solution, not just a spreadsheet." - Ian Bennett"AI will get really good at those technical tasks, cleaning up data, maybe running some basic forecasts, but that just frees us humans up to focus on the stuff that requires creativity, critical thinking, and emotional intelligence." - AIIn this special AI-driven episode, Paul Barnhurst invites listeners to consider how the field of financial modeling is both grounded in foundational skills and evolving with new technologies. It’s about connecting with clients, asking the right questions, and using your skills to drive better business decisions.Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:17] Introduction to the episode[03:57] Lessons from modeling mistakes[06:29] Four key pillars of financial modeling[08:51] Managing large-scale models[13:40] Excel’s power stack and future enhancements[15:14] Modeling standards and best practices[19:38] Excel’s longevity and AI’s role[22:44] The World of fractional FP&A [27:38] AI’s place in financial modeling[33:16] Wrap-up and invitation for feedback

Patrick McMillan, a Fractional CFO and transaction advisor at Amplēo, shares insights from over two decades in guiding companies through M&A. He discusses the crucial role of Quality of Earnings (QofE) in financial assessments during transactions and how it differs from traditional audits. Patrick highlights the importance of normalizing earnings and differentiating between operating and non-recurring items. He emphasizes the significance of soft skills like storytelling in finance, making complex information more relatable and actionable for financial professionals.

In this episode of Financial Modelers Corner, host Paul Barnhurst welcomes Ruby Liu, Director at KPMG Australia’s Valuation Team, to dive into intricacies of financial modeling. Having led KPMG Australia’s Sydney modeling team and worked as the head of corporate finance in the energy sector, Ruby’s vast experience spans from transactional modeling for infrastructure assets to advising clients on valuation and capital raising. Ruby Liu brings over 16 years of professional expertise in corporate finance, financial modeling, and valuations. This episode offers practical insights on managing complex financial models, optimizing processes, and the challenges of transitioning models from transactional to operational use. Ruby’s guidance provides a valuable learning opportunity on how to build efficient and user-friendly financial models. Her deep knowledge and hands-on experience make her a key voice in the field of financial modeling. Key takeaways from this week's episode include:The key differences between transactional and operational models and how to adapt them for long-term use.Why keeping the model user in mind is crucial for building effective financial models.Ruby’s top strategies for creating models that are simple, visually appealing, and efficient in calculation speed.Insights into the challenges of working with large, complex models and how to manage issues.How Ruby’s experiences at KPMG shaped her understanding of the financial modeling landscape.Here are a few quotes from Ruby Liu:"The most efficient model isn’t the one with the most complex formulas, but the one that’s easy to understand and use." - Ruby Liu"In financial modeling, the goal is to fit the user’s purpose, not dazzle them with complexity." - Ruby Liu"I think AI can help build models, but we’ll still need human oversight to interpret the results." - Ruby LiuIn this insightful episode, Ruby Liu offers a masterclass in financial modeling. From her candid reflections on the pitfalls of overly complex models to the importance of keeping the end user in mind, Ruby’s practical advice is invaluable for both novice and seasoned modelers alike. Follow Ruby Liu:LinkedIn - https://www.linkedin.com/in/liurubyFollow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:13] - Introduction to the episode and guest[03:01] - Worst financial model and lessons learned[08:28] - Ruby reflects on her evolving perspective on the industry [12:47] - Ruby’s leadership experience at KPMG’s Sydney team[16:47] - Insights into Ruby’s current role in valuations[22:14] - Different valuation methods; income and market approaches[25:57] - Converting transactional models into operational ones [41:16] - Rapid fire questions segment with Ruby[47:49] - Advice for modelers and contact information

In this special solo episode, host Paul Barnhurst, also known as "The FP&A Guy," reflects on key insights gathered from past episodes of Financial Modeler’s Corner. With over 40 episodes under his belt, Paul dives into recurring rapid-fire questions posed to expert financial modelers worldwide. From circular references to VBA use and Excel's future, this episode offers valuable wisdom on the art and science of financial modeling.Paul Barnhurst, an accomplished financial modeling professional and host of the podcast, takes center stage. Paul is the founder of “The FP&A Guy” and has earned the prestigious Advanced Financial Modeler (AFM) certification from the Financial Modeling Institute (FMI). His wealth of experience and insights makes this solo episode both engaging and informative.Key takeaways from this week's episode include:The most common preferences of expert financial modelers on key technical decisions.Why dynamic arrays and other Excel functions are becoming increasingly important, and the pace of their adoption.Insights into how artificial intelligence (AI) could impact financial modeling and whether it will replace human modelers.The importance of good design principles in financial models, as shared by leading financial modeling experts.Fun and practical Excel shortcuts used by seasoned modelers to boost efficiency and accuracy.Here are a few quotes from Paul in this episode:"Circular references are dangerous because most people don’t really understand what’s going on, and it can lead to other errors in your model." - Paul Barnhurst"If at all possible, don’t use VBA in your model. The less you use it, the simpler the model is." - Paul Barnhurst"I’m of the belief that AI will build models for us. It’s a question of when, not if." - Paul BarnhurstIn this special solo episode, Paul Barnhurst takes a moment to reflect on the lessons learned from over 40 episodes of Financial Modeler’s Corner. He shares key takeaways from the rapid-fire questions posed to some of the top financial modelers in the world, offering a wealth of advice on best practices, common pitfalls, and emerging trends in financial modeling. As always, he invites listeners to reach out with feedback, questions, and guest suggestions, reinforcing the show's commitment to fostering a global community of financial modeling enthusiasts.Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:09] - Introduction and background[03:18] - Circular references in models[04:55] - VBA in financial models[06:45] - Dynamic arrays: the future of excel?[16:50] - Will excel ever die?[18:16] - AI and financial modeling[20:31] - Financial models as corporate decision-making tools[22:26] - Favorite excel shortcuts from top financial modelers[30:34] - Closing thoughts and invitation to audience

In this episode of Financial Modelers Corner, host Paul Barnhurst welcomes Paul Medici, founder and CEO of Medici Financial Modeling. They dive into the art and science of financial modeling, sharing horror stories, insights, and practical tips on how to avoid common pitfalls. The discussion revolves around the importance of simplicity and structure, and how mastering the fundamentals can save time and deliver better results.Today’s guest is Paul Medici, the Founder and CEO of Medici Financial Modeling. With over a decade of experience, Paul specializes in building bespoke financial models and custom data automation tools for corporate clients across the US, Canada, and Europe. His expertise spans a wide range of industries, including financial services, healthcare, manufacturing, mining, real estate, retail, technology, and even charitable organizations. He holds an MBA from the University of Toronto and a Master’s in Geological Science and Engineering from Queen’s University.Key takeaways from this week's episode include:The most common mistakes in bad financial models and how to avoid them.How a background in geology led Paul Medici to a career in financial modeling.The importance of understanding revenue and cost build-ups in different industries.Why practicing financial modeling on personal projects can enhance your skills.Key shortcuts and techniques to speed up your Excel modeling process.Here are a few quotes from Paul Medici:"All bad models have one thing in common: they're not user-friendly, difficult to update, and time-consuming." - Paul Medici"Most corporate models start simple but turn into 'Frankenstein' models over time as people add complexity." - Paul Medici"If you're thinking about financial modeling, practice by building models for everyday tasks like personal budgets." - Paul Medici"The key to mastering financial modeling is understanding how the financial statements and supporting schedules link together." - Paul MediciFrom his early career in geology to teaching advanced Excel at top investment banks, Paul brings a wealth of knowledge to the conversation. He emphasizes the importance of building user-friendly models, practicing regularly, and finding the right balance between complexity and functionality. Follow Paul Medici:Website - https://medicifinancialmodeling.com/LinkedIn - https://www.linkedin.com/in/paulmedici/Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:27] - Introduction to the episode and guest [03:15] - The worst financial model story and lessons learned.[07:17] - Career transition from Geology to Finance[12:40] - Challenges in modeling different industries[19:22] - Favorite industries and financial models[22:17] - Bespoke data automation tools[25:47] - Teaching Excel and financial modeling courses[34:29] - Advice for FMI Certification[39:03] - Rapid fire: financial modeling preferences[44:13] - Final advice and contact information

In this episode of the "Financial Modelers Corner," host Paul Barnhurst welcomes Gilbert Hangartner, a financial modeler with a background in science. The discussion delves into the intricacies of financial modeling, the importance of simplicity in model construction, and the application of Monte Carlo simulations to understand risk. Gilbert shares his insights on how to approach financial modeling by asking the right questions rather than having complex formulas.Gilbert Hangartner is a seasoned financial modeler who transitioned from a career in science, specializing in chemistry and physics, to financial modeling and risk analysis. His scientific training gives him a unique perspective on financial modeling, treating it as both a creative process and a technical discipline. Gilbert emphasizes the importance of simplicity and clarity in building effective models and is an advocate for using models as tools for communication and strategic decision-making.Key takeaways from this week's episode include:Understanding the importance of simplicity in modeling The debate on whether financial modeling is more of an art or a scienceSimplifying a problem and understanding the question before diving into model building.Introduction to Monte Carlo simulations for risk managementA discussion on the limitations of Excel and future of financial modelingHere are a few quotes from Gilbert Hangartner:"A good model is not about complexity; it's about clarity and answering the right question." - Gilbert Hangartner"For me, modeling is a creative act, much like writing a song or painting a picture." - Gilbert Hangartner"Multi-dimensional modeling is key; real-world problems are never just two-dimensional." - Gilbert Hangartner"The future of financial modeling lies beyond Excel; it’s time for more advanced, structured tools." - Gilbert HangartnerIn this episode, Gilbert Hangartner offers a fresh perspective on the world of financial modeling and challenges the conventional wisdom that financial models must be complex to be effective. Whether you're a seasoned modeler or just starting out, Gilbert's insights on Monte Carlo simulations provide valuable guidance on how to enhance your modeling skills and approach.Follow Gilbert:LinkedIn - https://www.linkedin.com/in/gilbert-hangartner-71754047/ Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:16] - Introduction to the episode and the guest, Gilbert Hangartner[01:57] - The worst financial model horror story shared by Gilbert[04:42] - Discussion on the importance of simplicity in financial modeling[06:10] - Gilbert explains his transition from science to financial modeling[10:11] - Art or Science? The nature of financial modeling[13:45] - Strategies for asking the right questions when building a model[17:16] - An overview of Monte Carlo simulations for risk modeling[28:31] - The advantages of Quantrix over Excel [44:47] - A contrarian view on the future of Excel in financial modeling[47:48] - Closing Remarks and Contact Information

In this episode of Financial Modelers Corner, host Paul Barnhurst is joined by Giles Male, who brings his unique perspective on the rapidly changing landscape of financial modeling. Together, they explore how the latest advancements in Excel—such as dynamic arrays and Lambda functions—are revolutionizing the way financial models are built and used. Giles also provides invaluable advice on the importance of simplicity, adaptability, and effective communication in modeling.Giles Male is a CMA-qualified accountant and a seasoned financial modeler with extensive experience in bid analysis and complex financial modeling. As a co-founder of Full Stack Modeler, Giles is passionate about training and mentoring the next generation of financial modelers. He holds the prestigious Master Financial Modeler (MFM) accreditation from the Financial Modeling Institute, making him one of only seven individuals worldwide to have achieved this honor. Giles brings a wealth of knowledge on modern Excel and its application in financial modeling.Key takeaways from this week's episode include:The importance of embracing modern Excel techniques, including dynamic arrays and Lambda functions.Insights into the changing landscape of financial modeling and why simplicity is often more effective than complexity.The challenges and rewards of transitioning from traditional modeling methods to modern approaches.How Giles's experiences in ultra-marathon running have influenced his approach to problem-solving and pushing beyond perceived limits in both personal and professional contexts.Practical advice on maintaining model integrity, including the use of structured standards like FAST or SMART while adapting to specific project needs.Here are a few quotes from Giles Male:"Simplicity is the biggest lesson I’ve learned in my career. Complex models might seem impressive, but they’re often impractical." - Giles Male"A good financial model should be as complex as it needs to be, but as simple as possible." - Giles Male"There’s a visibility fog when reviewing your own models. Stepping away and coming back later is essential." - Giles MaleIn this episode, Giles Male offers a wealth of insights into the evolving world of financial modeling. He emphasizes the importance of simplicity, the transformative power of modern Excel, and the critical need for clear communication in model design. As the industry continues to evolve, Giles’s focus on adaptability, continuous learning, and user-centric design serves as a guide for both seasoned professionals and newcomers alike.Follow Giles:Website - https://www.fullstackmodeller.com/LinkedIn - https://www.linkedin.com/in/giles-male-30643b15/ Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:18] - Introduction to the topic and guest Giles Male[05:31] - Lessons from complex models[07:12] - Giles shares his career journey into financial modeling[16:10] - Achieving master financial modeler accreditation[17:19] - Giles shares practical project insights[28:42] - Defining advanced modeling skills[34:00] - The future of excel and financial modeling[41:50] - Excel shortcuts and best practices[47:47] - Conclusion and contact information

In this episode of Financial Modelers Corner, Paul Barnhurst dives into the intricacies of financial modeling, focusing on cash flow forecasting and continuous planning with FP&A expert Randy Brown. Randy shares his unique journey from music school to becoming a financial consultant and emphasizes the importance of practical financial strategies, especially in volatile markets.Randy Brown is a seasoned financial consultant with a rich background in FP&A, corporate finance, and financial modeling. After initially pursuing a career in music, Randy transitioned into finance, where he has built a successful career, particularly in cash flow management and continuous planning. His approach blends technical financial skills with real-world business acumen, making him a sought-after consultant in the industry.Key takeaways from this week's episode include:The critical importance of cash flow forecasting for business stability.Practical steps to build a 13-week cash flow forecast.Why continuous planning is more effective than traditional annual budgeting.Common pitfalls in financial modeling, including the dangers of circular references and external workbook links.Randy’s insights on managing finances for small to medium-sized businesses, especially in distressed situations.Here are a few quotes from Randy Brown:"The minute you create a budget, it’s meaningless. The business environment changes too fast for a static plan." - Randy Brown"For cash flow forecasting, it’s all about identifying your sources and uses of cash and laying them out on a calendar." - Randy Brown"The flexibility of working from home and being my own boss was the number one driver for becoming an independent consultant." - Randy Brown"Learn relational data structures; understanding how data relates will improve every analytical task you do." - Randy BrownIn this insightful episode, Randy Brown shared his wealth of knowledge on financial modeling, continuous planning, and the critical importance of cash flow forecasting. His emphasis on the importance of relationships, the simplicity of effective cash forecasting, and the pitfalls of traditional budgeting methods offers a fresh perspective for financial professionals striving to improve their modeling practices.Follow Randy:Website - https://www.instagram.com/randy_brown/LinkedIn - https://www.linkedin.com/in/randyjbrown/ Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode:[01:28] - Introduction to the episode and guest Randy Brown[07:27] - Insights into Randy’s background and career journey[13:17] - Continuous planning vs. annual budgeting[20:36] - The benefits of fractional consulting[23:37] - The Importance of cash flow forecasting[28:01] - Building a 13-Week Cash Flow Forecast[34:53] - Key considerations for cash flow management[42:48] - Rapid fire financial modeling questions[48:28] - Final advice and closing thoughts

In this episode of Financial Modelers Corner, host Paul Barnhurst delves into the intricacies of financial modeling in the e-commerce industry with guest Drew Fallon, a seasoned e-commerce entrepreneur and co-founder of Iris, a cutting-edge FP&A tool for e-commerce businesses. The discussion offers valuable insights into the unique challenges of financial modeling in a rapidly evolving digital landscape, particularly in direct-to-consumer (DTC) businesses.Drew Fallon is an experienced entrepreneur in the e-commerce and CPG sectors. He began his career in equity research, working on high-profile IPOs like Airbnb and Corsair. Drew later co-founded and served as CFO for Mad Rabbit, an e-commerce brand that achieved significant growth under his leadership. Currently, he is the co-founder and CEO of Iris, a financial modeling platform that integrates AI to help e-commerce businesses automate their financial forecasting and analysis.Key takeaways from this week's episode include:The key components of effective financial modeling for e-commerce businesses.How cohort forecasting and customer retention play crucial roles in revenue prediction.The importance of understanding fulfillment costs and their impact on gross margins.Why many e-commerce brands fail due to poor financial modeling and how tools like Iris can help.Insights into Drew's journey from equity research to building successful startups in the e-commerce space.Here are a few quotes from Drew Fallon:"The number one thing to focus on with these e-comm businesses is the returning revenue number. If you mess up the forecast for your returning customer, it's the easiest way to mess up the gross profit forecast." - Drew Fallon"E-commerce is a tough business on working capital. It can be really challenging if you don't model out your cash flow accurately." - Drew Fallon"If you get the gross profit wrong, then you get the CAC wrong. And then all of a sudden you're losing money, and you die." - Drew FallonIn this insightful episode, Drew Fallon emphasizes the critical importance of precise financial modeling in the e-commerce sector, particularly in managing customer retention, fulfillment costs, and the dynamics of working capital. His experience in scaling e-commerce brands and developing Iris underscores the need for specialized tools and methodologies to navigate the complexities of this industry. Whether you're an entrepreneur, financial modeler, or simply interested in the intersection of finance and technology, this episode offers valuable lessons on how to build sustainable, profitable e-commerce businesses.Follow Drew:Website - https://www.irisfinance.co/LinkedIn - https://www.linkedin.com/in/drew-f-74947b117/  Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpaguy8376  Follow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit www.fminstitute.com/podcast and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:10] - Introduction to the episode and guest Drew Fallon.[04:44] - Drew’s background and E-commerce journey[11:52] - Discussion on Drew’s passion for startups and its challenges and rewards[17:04] - Key elements of financial modeling specific to e-commerce[28:16] - Operational metrics and cost assumptions and how they affect overall financial health.[35:06] - The advantages of using Iris in e-commerce financial modeling.[41:53] - Quick insights into Drew's financial modeling preferences[47:08] - Drew’s advice for aspiring financial modelers[49:30] - Final thoughts and how to connect with Drew