In this episode, we had the privilege of speaking with Jon Morris, the founder and CEO of Fiscal Advocate. Jon’s story is a masterclass in entrepreneurship, starting with his first company, Rise Interactive, a digital marketing agency he grew from a one-person operation to nearly $40 million in revenue with 250 employees. After successfully selling that business, he created Fiscal Advocate, a company dedicated to helping service-based businesses master their finances.
Jon’s journey to becoming a “fiscal advocate” was born from a pivotal moment in his career. His business coach pointed out his unique ability to glean critical insights from financial numbers. This led him to realize that many founders struggle with finance, and he could leverage his expertise to help them. Jon’s new mission is simple: to help companies understand and optimize just three key numbers—year-over-year revenue growth, profit margin, and cash flow.
Knowing When to Exit: A Founder’s Dilemma
When asked about his decision to sell Rise Interactive, Jon offered three compelling reasons. First, he was looking for diversification. What started as an idea that was worth “zero” eventually became 99.9% of his personal wealth. With a family to support, he knew it was time to diversify.
Second, he felt a sense of “déjà vu.” Every year, he would get excited for “game day”—the first business day of the new year. But in 2019, while he knew the company was set for a phenomenal year, the excitement was gone. He felt he was simply running the same playbook he had already mastered. Finally, personal family matters required him to step back and devote more time to his loved ones.
These reasons are a powerful reminder that an exit strategy isn’t just about the financial numbers—it’s about personal growth, a sense of purpose, and life’s changing priorities.
The Three KPIs Every Service-Based Business Must Master
Jon revealed that most founders who come to him have hit a growth plateau, often around the $20 million mark. The reason, he says, is almost always found in their financials. He shared three critical KPIs that every founder should become obsessed with:
1. Gross Margin
This is the money you have left over after paying all your employees, freelancers, and tech expenses to service your customers. Jon stressed that for service-based companies, the sweet spot is between 50% and 60%. A margin below 40% often means you’re losing money, while a margin above 60% might signal that you’re either under-delivering or burning out your team. A higher gross margin gives you more capital to reinvest in your business and drive growth.
2. Sales and Marketing Spend
The second KPI is the percentage of your revenue you spend on sales and marketing. Jon noted that while most of his competitors would spend almost nothing, Rise Interactive had one of the highest percentages in the industry. As a result, they grew faster. He asked, “How come I’m the only marketer that actually believes in marketing?” This is a crucial lesson: if you want to grow, you must budget for it and actively invest in it.
3. Innovation
The third KPI is the money you spend on innovation. Jon’s philosophy is simple: never lose a customer due to performance. His goal is to make his company better on December 31st than it was on January 1st. By investing in innovation and focusing on reducing churn, you build a sustainable and valuable business.
The Role of AI and the Power of Customer Obsession
When asked about the impact of AI, Jon was optimistic. He sees AI as a powerful tool, much like Microsoft Excel. He believes it will absolutely help decrease operating costs and increase gross margins by automating manual, repetitive tasks. He gave an example from Rise Interactive, where they automated social media reporting, which not only saved thousands of hours but also improved the accuracy of the reports for clients.
Jon’s final lesson was perhaps the most profound: love the customer. He believes that if you care more about the customer than the solution you’re selling, you will build a great business. He advocates for “radical responsiveness,” a policy where his team responds to a client within 30 minutes, even if it’s just to acknowledge the request.
Looking ahead, Jon revealed that Fiscal Advocate is launching an AI CFO within the next 60 days. This AI will connect to a company’s financial data, allowing founders to ask any question at any time of day and get an immediate, data-driven answer. Jon’s journey is a powerful testament to the fact that while building a great business is a science, the ultimate secret to success lies in a deep commitment to your customers and your purpose.
About the Host, Navin Shetty
I’m Navin Shetty, a B2B business leader, entrepreneur, and the host of The PowerTalk Show, where I unpack the strategies that fuel business success. I specialize in crafting data-driven strategies that supercharge lead generation, elevate brand awareness, and drive customer acquisition for both startups and established businesses.
As the founder of Business Talks Weekly, my online publication, I curate actionable insights and trends that empower business leaders and innovators to stay ahead of the curve. It’s more than just content—it’s a community where ideas spark and sustainable growth takes root. If you’re ready to take your B2B growth to the next level or explore innovative investment opportunities, let’s connect and turn your ideas into impactful success stories.
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