What’s the biggest challenge facing the cannabis industry right now, and how are you and/or your company addressing it?
To me, the biggest challenge in our industry today is the credit & collection crisis. Previously running a CO cannabis company in 2015, I was tired of chasing past due customers for payment. Today, cannabis operators are extending credit terms without proper diligence, data and credit protocols, leading to a massive issue of past due A/R and collections. Many bad actors are taking advantage of these brands, leveraging trade credit and purposely not paying their vendors on time.
The Cannabiz Credit Association (CCA) is tackling this problem as the first and leading cannabis reporting and monitoring platform. With over $1B of collections/AR data being reported to the CCA by some of the industry’s biggest names, the CCA is finally able to shed light on bill payment behavior to allow credit decisions to be made backed by data, and not by hearsay. Also, CannaBIZ Collects, the nation’s leading cannabis collection agency, and sister company to CCA, is helping operators collect their tough past due collections on a purely contingency basis.
Where do you see the most exciting opportunity for growth and innovation in cannabis?
I see the most exciting opportunity for growth and innovation with leveraging data and insights into the cannabis industry. For decades the industry has been mostly “relationship-based”, which obviously is a key element to any sales team.
However, in order to make better decisions to protect your company, leveraging good data for example with credit decisions or new market analysis, is key to utilize data & insights for decision making. With Cannabiz Credit Association, we are proving that companies can stay out of trouble by sharing information and doing the necessary diligence prior to extending trade credit to customers.
This can save thousands of dollars in lost money for these brands and millions of lost dollars in the industry over time.
What’s one piece of advice you would give to someone looking to break into the cannabis industry?
Main piece of advice: find a niche and stay in your lane. Find one problem, solve it, and do it very well.
What is the most important thing you have learned from your experiences in the cannabis industry?
I have learned that cannabis is not an easy game. I previously ran a cannabis company in Colorado and decided to start multiple ancillary companies to serve the entire industry versus being plant touching in one market. It’s much more difficult to make money than people think with a plant touching business. So if you are starting or growing a business in cannabis, make sure you find a unique angle or really know your market before jumping in.
What do you want your legacy to be as it relates to the cannabis industry?
Regarding my legacy in the industry, I hope I’m simply known as someone that has conducted honest business and found solutions to problems that make a direct impact. I am excited each day to help operators (especially mom and pops) collect lost money after being taken advantage of, or help them protect themselves in the future.
I hope our work will be recognized to have helped move this industry forward with more accountability and integrity, as I pride myself on being someone that values fairness and good business practices.
Do you have a comment for Brett?
