In this episode of Financial Modeler’s Corner, host Paul Barnhurst speaks with financial modeling expert Scott Strachan about the role of financial models in business planning and decision-making. Scott shares lessons from over 30 years of experience in accounting, consulting, private equity, and corporate finance. The discussion covers the importance of modeling for startups, the problems with annual models, the risks of overrelying on EBITDA, and how the FMI certification has helped him stay sharp in a changing industry. Scott Strachan is a Chartered Accountant and Chartered Financial Modeler who has worked across the UK, the Arabian Gulf, and now serves clients in Qatar and London. He has built and reviewed complex financial models for deals worth hundreds of millions of dollars, and now contributes to the Financial Modeling Institute as a content developer and exam writer. Scott is known for applying practical thinking to modeling and helping bridge the gap between theory and real-world execution. Expect to Learn Why annual models are often inappropriate for startups and small businesses The difference between one-time-use models and those built for regular updates How poor modeling leads to funding gaps and business failure Why EBITDA can be misleading in deal evaluation How preparing for the CFM exam can improve your modeling skills Here are a few quotes from the episode: “A model is just an appendix to a business plan. If you don’t understand your market or product, no model will save you.” - Scott Strachan “EBITDA is a fantasy land metric. It ignores reality and tells you what you want to hear, not what you need to know.” - Scott Strachan “Every business fails because of bad management, and that often starts with not modeling your cash needs properly.” - Scott Strachan Follow Scott: LinkedIn - https://www.linkedin.com/in/scott-strachan-ca-a795851a4/?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_app Follow Paul: Website - https://www.thefpandaguy.com LinkedIn - https://www.linkedin.com/in/thefpandaguy YouTube - https://www.youtube.com/@thefpandaguy 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=7079020077076905984 Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save
