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Both The Results and The Process Matter For Your Food Business

Our featured podcast this week talks about how financial processes are needed for food businesses to make key management decisions and clearly communicate with their stakeholders. Food companies need processes to discover what new products their customers want and where they expect to find them, and they need processes for evaluating financial performance.

Accountants and financial staff are often process-oriented people, meaning they have a systematic way of approaching problems, iterating solutions and evaluating the success of those solutions. Process-oriented people are needed because they provide structure and order to what could be a chaotic and unstructured approach to problem-solving.

While processes are valuable, food entrepreneurs, like most entrepreneurs, are very results-oriented people. They like to get things done and focus on the bigger vision rather than focusing exclusively on processes, sometimes even important financial processes. This can be a problem if their accounting systems are out of whack or if they don’t regularly review their financial performance.

However, their results orientation allows them to focus on other key aspects of the business. Good food entrepreneurs are constantly talking to and engaging with their target customers to make sure they are solving problems that actually exist. This helps them stay focused on their target customer and ultimately, the goals of being profitable and growing the value of their food business. Perfect financial processes don’t matter if the business is not providing something of value, and what customers value is constantly changing.

Food businesses need both process and results-oriented people and the healthy tension their (sometimes conflicting) orientations create. Both kinds of people seek to understand the financial reality about their business performance. Good financial staff ground themselves in the truth of writing their assumptions down, seeing if those assumptions were true and learning as a result. Good food entrepreneurs do the same but also ground themselves in the truth of their customers, where they are headed, and thus, where the good business opportunities lie.


And now, our roundup of the best food and beverage finance news, events and resources from around the web…

Food and Beverage Business Models

Business Model Insights

Raising Capital

Raising Capital

Grocery Store Shopping

CPG/National Brands

Grocery Store Produce Section

Market Trends

 Regenerative Agriculture

Farming and AgTech

Mergers and Acquisitions

Deals/M&A

Events

Industry Events

Categories: Insights Newsletter