4
Market Sizing
Analysis
and
Attempting to come up with a
cookie-cutter model that can be
inserted anywhere around the
country simply does not work
based on the overwhelming diversity in cannabis law. A smart,
direct, hands-on cannabis company operating in a state will follow
specific guidelines of that state
and thus cater their business processes to that particular market.
Other business models deal with
the same problems and would
have to adapt to specific state and
county laws, and this is common
practice in agriculture and manufacturing businesses. General
best practices can be established
that are emulated and matched
to a particular market. The cannabis industry is just getting to this
level of maturity and is showing
promise in developing models
that can be adapted to a greater
range of markets.
Wise investors will look for
opportunities in emerging state
markets that show a high potential of acting harmoniously within
the state’s market models. New
or experienced investors in the
cannabis industry need to look
for companies that can grow
quickly and have the ability to
manage modular high-growth
markets. When investing in an
established company, analyze
revenue and cash flow to ensure
that there is enough capital for
expansion.
As we’ve seen already above, the
cannabis industry is regulated by
CANNAINVESTOR Magazine
the states in which the businesses operate. When it comes to
marketing, there are very specific cannabis industry rules that
must be followed when it comes
to either licensing, branding, IP,
or franchising. Companies must
know the barriers to entry for
investors and license holders,
the qualifying medical conditions
for patients in the state in order
to get medical cards, and medical cannabis companies understanding patient needs as well as
potential clients in order for the
business to know that they have
a large enough market to sell to
is of utmost importance. Often,
operations that spread around
the country do not consider key
facts about the market that they
are entering and establish themselves too early in markets that
will not produce significant sales
for years.
stimulate growth and generate
revenues as well as prove their
capabilities in handling present
and future financial obligations.
Once you apply your investment
criteria and understand your
investment g