Why Doesn’t My Model Match Reality? How to Know and What to do When Your Model isn’t Working

Financial Modeling helps build financially successful businesses. But what if your model doesn’t match reality?! 

 

Sarah and Producer Chelsea are discussing the importance of regularly comparing your models to your actual business outcomes, how to identify if your model doesn’t match reality (because as you’ll hear it is not always obvious!) and, of course, what to do about it.  

 

Sarah shares a recent instance where she recognized that a founder's model and reality weren’t matching up, how a Good Food Founder identified that labor costs were higher than modeled causing profit margin and cash flow issues, and the steps she’s taking to get her business back on track. 

 

Whether you’re a modeling expert or novice, this episode provides valuable insights for aligning your theoretical models with real-world data so you can make informed decisions, mitigate risks, and position your business for long-term success.

 

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