Recent developments such as Ontario-based, Canopy Growth Corporation missing low end revenue targets, and MedMen Enterprises of Culver City laying off 190 employees serve as a warning sign fast that the growth phase is over and only the fittest will survive. Data can be the secret weapon to help cannabis companies thrive in this environment of uncertainty.
Time, money, and resources are the lifeblood of a company and missteps can prove to be fatal. This is especially true in the US cannabis market where the product is not federally legal, bank financing is difficult, investors are cautious, and there is robust competition from the black market.
Why is Data so Important in the Cannabis Market?
Cannabis business owners face a unique legal challenge in the US:
- State-by-state legalization of cannabis prevents products from being transported across state lines.
- This resulting in operational inefficiencies, high general costs of operation, and difficulty in scaling any related business.
- This in turn impacts companies operating in comparatively small markets where the consequences of mistakes are amplified.
For example, a company facing decreasing demand in one state can’t simply ship the product to another market where demand is higher. They are forced to eat losses that are avoided in more traditional markets.
To gain an idea of how legalization state-to-state might change, follow this link to view predictions on which states might be voting to legalize cannabis in 2020.
Three fundamental ways data can help your business:
- Identify opportunities for growth or improved efficiencies
- Highlight potential solutions
- Track progress
Exactly what data you need depends on the specific nature of your company. Some types of data can help you understand the operational aspects of your business. Other types of data can help you understand your customer. The nature of the data can also be different. Some data simply tells you “what is” and others tell you “why it is.” It is this combination that can help companies make the best decisions.
Contact Sugata@csequence.com to explore how we can help you get the data you need to run your business.