For any startup founder, the path from concept to execution is fraught with challenges, particularly when it comes to scaling. In 2023, Better Nature, a plant-based food startup, encountered these obstacles as it expanded into major European retailers like Tesco and Lidl. The surge in demand strained production, supply chains, and cash flow, putting pressure on the company’s financial operations.

Here, Chris Kong, the co-founder and co-CEO, shares three vital lessons that guided Better Nature through this rapid growth phase: maintaining regular communication with investors, effectively managing cash flow, and seeking external financial expertise.

1. The Power of Consistent Communication

One critical lesson Chris learned during Better Nature’s expansion was the necessity of keeping investors informed. In 2023, the fundraising landscape became particularly daunting due to economic uncertainties. Investors grew more cautious, requiring a narrative of consistent progress alongside a great product.

Chris discovered that investors appreciate a clear trajectory—what he refers to as "lines rather than dots." By consistently sharing quarterly updates and remaining active on platforms like LinkedIn, Chris ensured Better Nature stayed prominent in investors’ minds. This ongoing dialogue fostered trust and engagement, which proved essential during fundraising efforts. Keeping investors in the loop not only instilled confidence in the company’s growth but also positioned Better Nature as a compelling investment opportunity.

2. Cash Flow Management: The Lifeline of Scaling Operations

As Better Nature entered retailers like Tesco and Lidl, the demands on production and financial resources increased significantly. Managing cash flow became an important consideration. Without careful planning, fulfilling large orders could have led to financial strain.

Chris understood that effective cash flow management was crucial during this period. One practical strategy was using financial tools like Mimo. By adjusting credit terms and carefully timing payments through Mimo Flex, Better Nature was able to maintain a steady cash flow while meeting retailer commitments. This approach allowed the company to efficiently manage the increased demands from customers while keeping its financial operations on track.

3. Knowing When to Seek Help

As Better Nature scaled, the financial complexities of the business outgrew Chris’s capacity to manage them alone. While he had a solid understanding of finance, the demands of a rapidly expanding company required more specialized expertise. Recognizing this, Chris decided to outsource the finance function to a third-party firm with deep industry experience.

This decision proved to be a game-changer. By bringing in external experts, Better Nature was able to benefit from their experience and insights, including benchmarking the company’s performance against similar businesses. This external perspective provided clarity and confidence in financial decisions, helping to ensure that the company’s growth was on solid ground.