Supported a start up in Organic farming to focus on profitable growth and fund raise

Background

2 highly educated corporate professionals quit their jobs to start a D2C organic farming business. While the Company had a significant runway, a clear roadmap to being profitable was missing. This could be a show stopper in future expansion and funding plans and hence CFO Bridge was engaged to help the Company turn profitable.

Observations and Approach 

CFO Bridge team worked with the Company over a period of 2 years in the flowing areas 

Clearly defining a 5-year roadmap and a rolling annual budget and working towards achieving the same. 

Tracking the progress against the plan and course correct on an ongoing basis. This helped in keeping the 5-year roadmap revised and updated periodically.

Implemented a Monthly MIS to measure and analyse channel level profitability thereby focusing on improving channel mix. 

Completed working capital assessment for each channel and ensured optimum levels for each channel.

Introduced concept of CAC/LTV to ensure all investment decisions were taken on data-based approach of ROI/impact on sales and profitability.

Impact

The Company has a clear path to profitability, and this has helped in subsequent valuations and the 2 rounds of fund-raising, that we supported. 

Greater control over fixed/ discretionary spends – improving break-even levels and lowering cash burn.