#472: Ryan Tansom | The Only Financial Model You Will Ever Need

Most owners make decisions in the dark. Sales over here, payroll over there, cash flow somewhere in the background — and no clear way to see how it all fits together.

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In this episode, I break down the 5-year, three-statement model I use with clients to finally show how revenue, margins, OpEx, working capital, cash flow, and valuation all connect. It's the system that turns guessing into clarity, scattered decisions into strategy, and helps you design a business that aligns with your goals for time, cash flow, and long-term wealth.

When owners finally see the whole picture — how their decisions drive EBITDA, how working capital eats cash, how valuation is created, and how comp and accountability align to their goals — they gain the ability to run the company from the boardroom instead of the weeds.

I know what it's like to feel trapped in the grind of running a business. In 2009, I joined my family's $21 million company during a financial crisis, and over five years, we turned it around and sold it for eight figures. While that sale looked like a win on paper, it left me questioning everything. The stress of running the business, the massive tax hit, and the lack of clarity about how our decisions aligned with our goals taught me a powerful lesson: most business owners don't have a framework to make decisions that lead to true freedom.

That's why I created the Independence by Design™ Ownership Framework. It's a system to help owner-operators align their business decisions with their goals for time, cash flow, and wealth. Over the last decade, I've been a part of dozens of transactions and worked with thousands of business owners, helping them design businesses that work for their lives—not the other way around.

On the podcast, I share strategies and insights I've learned along the way, bringing in top thought leaders like Gino Wickman, Mike Michalowicz, Jack Stack, and Bo Burlingham to provide their perspectives. Whether you're feeling stuck, planning to scale, or preparing for an exit, my goal is to give you the tools and confidence to take back control and build a life you love.

This isn't just another business podcast. It's about reclaiming your independence and designing a business that gives you the freedom you deserve.

Top 10 Takeaways

1. Your ownership goals must drive the business model — not the other way around.
2. A business is a system — and the three statements show the whole system at once.
3. Valuation is not a mystery — it’s predictable math tied to cash flow.
4. The "valuation gap" determines whether your dreams are mathematically possible.
5. Revenue must be predictable — and that requires a mapped customer journey and measurable funnel.
6. Margins are an operational scorecard — not just accounting output.
7. Working capital is the silent killer — and explains why the bank balance never matches the P&L.
8. The cash flow statement is the bridge between ownership and operations.
9. Comp plans must be tied to the model — aligning the team around revenue, margin, EBITDA, and cash.
10. The model is the owner’s decision engine — allowing them to elevate into the boardroom.

Chapters:
(00:00) Why ownership goals must drive your business model: time, cash and wealth

(04:22) The valuation gap tab: understanding enterprise value and equity value

(09:30) Projections: building your five-year revenue and growth assumptions

(13:00) Revenue forecasting: line of busi...

Chapters

• (00:00:00) - Independence by Design
• (00:01:51) - Why Your Own Money Is SO Important
• (00:09:37) - Out Year Projections
• (00:17:42) - Adjusted EPS and normalized EBITDA
• (00:19:09) - The Earnings Statement, Cash Flow Statement
• (00:26:38) - Distributions and Cash Flow
• (00:33:44) - The Sales and Marketing Journey
• (00:38:53) - The 3-Step Process for Operations
• (00:45:58) - The Business Valuation Model
• (00:49:20) - The Income Statement Comparison and Budget Comparison
• (00:51:39) - Exporting the Trial Balance from Cash Flow
• (00:57:40) - Grow Your Business With a Fear of the Future