Startups
12 November, 2024 6 Minutes Read
Yes, it is OKAY to hire interim CFO for startups if you are looking for rapid financial growth for your organization. You may not need an interim CFO right when you kickstart your journey. However, you will definitely hire one as your business grows and you have clear goals set. A CFO will also play a crucial role in executing your ambitious moves. A CFO will build a financial model of your business, analyze the transactions, create a budget and make forecasts about the financial landscape. Furthermore, a CFO will assess the risks and devise strategies to mitigate those risks. Overall, in startups, a CFO will promote a “culture of security” by building and managing an agile infrastructure. Moreover, they will have a healthy growth orientation and the ability to depict the best financial stories with the numbers whenever they need to communicate with the CEO, investors, and other stakeholders. “There's no question over the last year, this new wave of technologies has had an impact on CFO decision-making. CFOs are really working to get their arms around all of it and we've seen this not only through our survey but client interactions. If you think about the CFO’s role in the last five to 10 years, more and more responsibility has been put on their plate. They need to grasp and understand these new technologies because they are ultimately the chief allocator of capital in these organizations. The CFO is in a position where they have to make choices and articulate their rationale to the CEO and the board as to how they arrived at their recommendations.”Sandy Cockrell, Former Global Leader of the CFO Program of Deloitte Do you want to know more about the benefits of hiring an interim CFO for your startup and when you need one? Let’s take a deep dive! THIS Is Why It Is OKAY To Hire Interim CFO For Startups 👍 An interim CFO steps into the shoes of your in-house CFO who is about to leave or has left your company. Further, an interim CFO works for a defined period in an organization. They will offer services for a span of three months, or six months or so and maintain continuity until the next permanent CFO is hired. But why do startups prefer interim CFOs over permanent positions? Let’s decode the advantages. 1. Specialized Services Best For Startup Dynamics An interim CFO will be specialized in managing the typical scenarios and challenges in a startup. Thus, they will guide you through various phases of your company and toward achieving the financial goal of your business. Moreover, they will be your voice in the fundraising rounds and the following processes. Mergers and Acquisitions IPO Preparation International Expansion Above all, they will assist rapid upscaling and downscaling of your business, navigating uncertainties and optimizing growth opportunities. Thus, your startup will remain profitable, seated on solid financial ground, and at the same time, steer toward growth. 2. Cost Efficiency You get high-caliber leadership in the form of an interim CFO for your startup. The CFO will be the guiding force in your current capital and growth plans. However, the engagement will be temporary. So, you will not have to worry about the salaries, quities and overhead costs. You will only have to pay the consultation fees. Thus, hiring an interim CFO is ideal for optimizing the limited resources available to a startup business. 3. Objective Representation Of The Organization’s Financial Scenario When you hire interim CFO for startups, you expect an objective viewpoint about the financial health of your organization. So, identifying irregularities in the following areas becomes easier with an interim CFO. Budgeting Cashflow Records Past client deals and transactions Financial control By resolving the said irregularities, an interim CFO helps a startup achieve its short-term and long-term financial goals. Furthermore, they improve decision-making solely based on data. However, being data-driven does not mean that they don’t analyze the market or potential risks. THIS Is When It Is OKAY To Hire Interim CFO For Startups 👍 You will have to bear $440,000 on average as you hire a full-time CFO for startups. However, an interim CFO will only charge you a fraction of this amount, and their role will evolve at the growth stage of your company. To be more specific, it is common to hire interim CFO for startups when the organizations are in a transition phase. Startups also need an interim CFO if they are going for a new round of fundraising. If you are not willing to get an interim CFO onboard, you can also outsource the responsibilities to a fractional CFO with close monitoring. Nevertheless, these are the scenarios when you need to hire interim CFO for startups. 1. When A Startup Prepares For Fundraising A fundraiser is the most common reason to hire interim CFO for startups. As I have said, the CFO will portray the right financial picture of the organization through numbers. That’s why a CFO is also a good storyteller! Furthermore, a CFO will participate in the fundraising rounds. They will even advise you on the capitalization structures and the process of fundraising through venture capital and other methods like business credit cards, business loans, crowdfunding, etc. 2. When There Is A Need To Manage Ad-Hoc Projects You can hire interim CFO for startups to manage ad-hoc projects like financial forecasts. They can function as additional insight into the financial scenario by double-checking the numbers. Ad-hoc projects are more difficult than they seem, as they demand immediate attention. Also, there needs to be clear planning for the completion of the project within the set timeline. An interim CFO can build an agile and dynamic infrastructure, create a WBS or work breakdown structure and do resource allocation to ensure timely completion of the ad-hoc projects. 3. When You Need A Strategic Direction In the USA, a startup business has an average shelf-life of five years. So, it’s clear that many startups struggle to remain profitable in the long run. An interim CFO can be the savior in this scenario. They can offer you a strategic direction, including the most common “cost-cutting” measure to maintain profitability. Strategic planning also involves developing timelines and milestones and documenting all the decisions made regarding the same. Further, some crucial factors in strategic assessments by a CFO are: Future risk assessment Resource allocation to maximize returns Communicating the financial scenario of the company to the Board and other stakeholders Modeling, forecasting, and transitioning the business, including mergers and acquisitions Bringing innovation and experimentation to ensure a long-term future for the organization Along with these scenarios, you will also need to hire interim CFO for startups when your existing accounting system is not up to the mark or the financial operations lack clarity. Moreover, if your in-house CFO leaves suddenly, an interim CFO can easily fit into their shoes. THESE Are The Drawbacks Of Hiring An Interim CFO For Startups 👎 You can face certain challenges as you hire interim CFO for startups, and the biggest challenge will probably come in the form of integration. Knowledge transfer is another hiccup in the process of getting an interim CFO board and having them fulfill their designated roles. Integration Challenges When You Hire Interim CFO For Startups An interim CFO may need some time to get integrated into the culture and system of the startup. Furthermore, they are well aware of the limited span they are going to spend in the company. Both these factors impact their expertise, and they may not be as effective as expected. Knowledge Transfer Gap When You Hire Interim CFO For Startups You cannot deny the fact that an interim CFO is a stop-gap, and their tenure will last until you have found someone permanent for the position. So, knowledge transfer becomes critical when the interim CFO takes charge and, when they leave, passing all the responsibilities to the new CFO. During both these processes, the interim CFO and their permanent successors can miss important insights. This can impact executing financial strategies. It’s not always easy to pass the baton to the next unless the direction is the same! Moreover, you will hire interim CFO for startups for a limited time span. It will not be easy for them to recognize the unique challenges of your business and feel a sense of belonging. Similarly, the in-house financial team members may find their intervention disruptive. Also read Is It Okay to Use Makeup to Look Younger? Is It Okay To Take Out Business Loans For Startups? Know The Pros And Cons Of Startup Business Loans. Is It Okay To Hire Taxing Company That Outsources For Startups? Managing Your Finances More Effectively.
9 October, 2021 8 Minutes Read
Are you planning to grow cash crops? But before that, do you want to know some basic information about cash crops? You have found the right place to get your answers. Here in this article, we will talk about cash crops. Starting with the cash crops definition and examples of cash crops, we will try to provide you with all the necessary pieces of information. This way, you will be able to decide whether you should go with a large farm that raises cash crops or a smaller one. What Are Cash Crops? In simple words, cash crops are those crops, which are usually grown to sell in the market environment for more profit. In a more explained form, in agriculture, the most commonly used cash crop definition is any type of crops, fruits, grain, legume, or other plant crops that are specifically grown not for consumption by the farmer but to be sold for more profit. At present, in the West, a vast majority of farmers grow at least a single cash crop. So that they can get profit from their agricultural endeavors, here are some cash crops that are grown in the United States. Sugar cane. Corn. Wheat. Cotton. Vegetables and fruits. Soybeans, along with oil-producing plants. In case you think that there is only a set of crops to fall under the category of cash crops, let me tell you you are absolutely wrong. Any type of crop can be a cash crop as long as it is being grown to earn some profit by selling it in the market. The main point of cash crop is that it is not at all used for the formers’ consumptions, and particularly for the market environment. This is the reason why they are usually grown more in quantity than just to feed the farmers. Read Also: Is Real Estate Investment Trusts A Good Career Path? Most Popular Cash Crops The popularity of cash crops is measured on the basis of how much of a cash crop is produced in a year. Here is the list of the most popular cash crops. Wheat. Rice. Corn. Sugar cane. Sugar cane is grown in more amounts than any other kind of cash crop. It is used for creating sweets, drinks, chocolates, desserts, and many other types of foods. Most Planted Cash Crops Here is a brief list of those cash crops, which are planted over the greatest area of land across the globe. Soybeans. Rice. Corn. Wheat. Across the globe, all these crops are planted on over 1 million square kilometers of land. Solely wheat is planted on over 2 million square kilometers of land across the world. As these crops form the primary staple grains of the world’s most culture, all these crops are most popular. In parts of Europe and North America, wheat is the staple grain. On the other hand, corn is the staple in South and Central America. In most of Asia, rice is the staple. However, soybeans are an oil-producing crop; this is why they are also on the list. Soybeans are used for producing oil worldwide. Read Also: How To Start A Food Truck Business? How To Grow Cash Crops? I hope you get enough knowledge about cash crops to plan your cash crop business. At the same time, you are also required to know how to grow them before starting your business. Here I will offer you a brief guide on growing the most popular cash crops. 1. How To Grow Sugar Cane? I have already mentioned that sugar cane is the most grown cash crop across the globe. Now additionally I will guide you on how to grow sugar cane in some simple steps. The very first thing you need to do is selecting healthy sugar cane plants. Consider thick stems, which are capable of producing healthy plants. The sugar cane stems have joints, and new plants sprout from the joints. Now cut the stems in one foot-long piece and ensure that every piece has 2 to 3 joints. If you find any flowers or leaves at the joints, feel free to remove them. Sugar cane plants require full sun, so choose an appropriate spot. Dig four-inch deep furrows. Sugar canes are planted horizontally. Before planting, moisten the furrows. Ensure that the water is fully drained and there is no remaining. Now plant the sugar cane by placing the stems upright and horizontally. Now, wait for the sugarcane to grow. You also need to take good care of the plants, use fertilizers in the proper amount, if needed, mix fungicides with the soil, use insect repellent sprays that are specially for plants. 2. How To Grow Rice? Rice is one of the most grown cash crops in the south Asian region. However, the demand for rice across the globe is considerable. Here you will get a guide to growing rice. When it comes to rice seeds, there are a lot of varieties. So, choosing the proper rice seed is vital. Elect a sport that receives direct sunlight and has acidic soil. While growing, rice plants need light and warmth. For preparing the seeds, soak them in water for at least 12 hours but not more than 36 hours. Now remove them from the water and sow them in rows. It will make your watering process easier. You need to plant the seed during the spring or fall season through the soil. And fill the field with at least 2 inches or 5.1 cm of water. You need to observe the water level and keep the soil always wet. Once the seedlings grow, space out or thin them in order to avoid overcrowding. It is advised to maintain a gap of 4 inches apart in rows. Let them grow up to 7 inches at least, which will take around one month. Now your duty is almost done. So, wait for the rice grains to mature. 3. How To Grow Wheat? Wheat is another most planted and popular cash crop across the globe. Bread is an essential meal in almost every part of the world. So, now we will learn how to grow wheat. Before you can start growing wheat, you need to think about is the space you have; it will determine how much wheat you will be able to grow. There are two types of wheat, winter wheat, which is planted in the fall and harvested in early spring. Spring wheat is planted during the spring and harvested in the fall. You are required to choose which one you want to grow. All your plants should get full sunlight. So, choose a location as per that. Always avoid shady places. Now that you know the important things, here are the steps you need to follow to grow wheat. Step 1: Prepare Your Seed Prepare your seed 6 to 8 weeks before the soil freezes for winter wheat. For spring wheat, the wheat plants can be planted as early as you will be able to work on the soil. Step 2: Fill The Soil Now you are required to fill your soil 6 inches or 15 cm deep. Then in case, it is needed, you need to spread the compost as well. While sowing the wheat seed, you have to ensure that you are planting one seed per one inch. Step 3: Spread The Seed Once you spread the seed, rake it again with a metal rake. Ensure a gentle raking over the seeds. This way, they will get worked into the soil. Step 4: Cover The Seed Now with a thin layer of soil, cover all the seeds. For spring wheat, the covering should be at least 1.5 inches or 3.8 cm; for winter, the number will be 2.5 inches or 6.4 cm deep. Always ensure that the layering of the upper soil is not exceeding more than 7.6 cm or 3 inches. Step 5: Properly Irrigate The Seeds Your newly planted seeds always need water. So ensure that part. The cooler the weather will be and the more it will rain, you will need to water the area less. You should ensure that the soil has enough moisture to grow the wheat. In case there is no rain and the planting area is going through a dry spell. Water it. Protect your crops from pets. Wait for the grains to be mature enough. Read Also: How To Start A Landscaping Business: 8 Simple Steps Frequently Asked Questions [FAQs] Several times I have been asked questions regarding cash crops. However, I am covering this particular topic, so I thought of answering some of the most common questions that might also offer you the much-needed information handy. Q1. What Are Examples Of Cash Crops? Instead of feeding livestock or family consumption, cash crops are usually grown for direct sale in the market. Spices, cotton, sugarcane, cocoa, and coffee are some of the most popular examples of cash crops. However, food crops, for example, corn, wheat, and rice are also grown as other cash crops in order to meet the global food demand. Q2. What Is Cash Crop In Agriculture? In the agricultural crop, a cash crop is purposely made for strictly selling in the market environment for as much money as possible. Most cash crops, such as grains, opium, cotton, and many other products, are usually grown in a monoculture environment, where the farmer only grows a single product on a piece of land. Q3. What Is The Most Profitable Cash Crop? Throughout the year, several cash crops have become high-yielding favorites of the farmer, for example, soybeans, wheat, corn, and rice. But if we consider it on a global level, then corn, rice, and wheat are the most valuable cash crops. In America, corn and soybeans have secured the top position among the pack and bring around $50 billion every year in total. Q4. What Is The Best Cash Crop For A Small Firm? Here is the list of the best cash crops for a small farm. Bamboo. Lavender. Especially mushrooms. Garlic. Basil. Christmas trees. Cilantro. Ginseng. Chives. Soybeans. Corn. Arugula. Sorghum. Cherry tomatoes. Saffron. Hostas. Goji berries. Q5. How Are Cash Crops Grown? Cash crops are basically those agricultural crops, which are mainly grown to sell for a profit in the market. Typically it is bought by parties separately from the farm. In order to differentiate the marketed crops from other subsistence crops, the term cash crops are used. Subsistence crops are those that are used to feed the producers’ own livestock or are usually grown as food for the family of the producer. Q6. Why Did Many Farmers Grow Cash Crops? The other name of the cash crop is profit crop. It is an agricultural crop that is specifically grown to sell in the market environment for profit. In those least developed countries, cash crops are usually those types of crops that attract demand in more developed nations. That is why they tend to have some export value. Final Talks I hope the above pieces of information about cash crops have helped you in understanding the whole concept of cash crops along with other necessary information. Now, if you want to start your cash crop business you can start your planning and select the crop you want to grow and sell in the market. Read Also: 1. Facebook Social ToolKit - Chrome Extention 2. Become A Media Manager With These Guides 3. How To Delete A YouTube Channel? - Step by Step Guide
