The beauty of ugly models

Last week at NY Tech Week, something unexpected happened.

​

I bumped into a former student from my Startup Financial Modeling 101 course.

He paused mid-step. Eyes widened.

And then he told his friend, “Wait... I was just talking about her!”

😳

But then he really gave me an ego boost:

He said my class completely rewired how he thinks about finance in his startup.

​

Not because of a sexy new metric.

Not because of some clever Excel trick.

But because of one distinction I taught that finally made the math make sense:

​

The difference between

  • Models built by accountants

Vs.

  • Models built by founders.

​

Here's why:

When most startup founders work with accountants to build models or use model templates built by finance people

They're handed beautifully formatted spreadsheets.

Gorgeous tabs. Drop-down menus. Nested logic.

....And no way to understand how real-world decisions drive outcomes.

​

  • Close another customer?

  • Run a campaign?

  • Build a new feature?

In an accountant-built model, those actions feel totally disconnected from the bottom line.

The math is backwards. The logic isn’t intuitive.

It’s a report - not a tool.

​

What I teach founders is that messy, founder-built models are often better.

Not prettier. Not more elegant.

But better.

  • Because they reflect how you actually think.

  • Because you can tweak them.

  • Because they remind you that modeling isn’t about compliance—it’s about betting.

​

If your model helps you see how actions drive outcomes,

Even if it looks like hot garbage,

It’s doing its job.

​

That’s what clicked for him.

​

And it’s one of my favorite moments to watch:

When a founder realizes that modeling isn’t about being good at Excel;

It’s about getting better at decision-making.

​

Enjoyed reading this article? Subscribe to receive more via email here. 

Know a Founder or Entrepreneur who'd love this content? Please share it!

Previous
Previous

Habits, not projects

Next
Next

How to get fired