In the rapidly evolving landscape of the cannabis industry, the adage, “data is king,” has never rung truer. On a recent episode of Financing Your Cannabis future, hosted by Beard Bros Media Network, three experts—Rachel Wright of Verdant Strategies and 420 CPA, Dina Nagib of Grass Goddess Consulting, and Sonya Kachinski of Acme Cannabis Consulting—shared their wisdom on the necessity of data integrity and analytics for cannabis businesses.
The Importance of Data in Cannabis
The session opened with an acknowledgment of the growing convention season, indicating that cannabis enterprises must hit the ground running as the industry transitions from holiday lulls into a more dynamic business phase. Rachel Wright emphasized that while data may not seem enticing to everyone, it plays a critical role in a company’s bottom line. “If your bottom line is profitable, then your business is ‘sexy’ to investors and stakeholders,” she stated. This sets the tone for why cannabis businesses must invest time and resources into understanding and leveraging their data effectively.
Challenges with Data Integrity
Dina Nagib, whose background stems from pharmaceuticals, discussed the paramount importance of data integrity. “Data integrity is critical,” she said. “When businesses switch point-of-sale (POS) systems, the handling of data can dramatically affect financial analytics.” She recalled an instance where a client’s cost information was dropped during a POS switch, leading to confusion and inaccuracies in financial reporting. This underscores the necessity for cannabis businesses to prioritize clean and accurate data transfer.
Sonya Kachinski also added that without well-organized data, anecdotal information becomes useless. “Data, organized, transparent, and actionable, can save businesses money. Even a 1% increase in efficiency can mean huge savings for a small dispensary,” she remarked. Therefore, businesses need to understand how to extract meaningful insights from their collected data.
Best Practices for Data Collection and Analysis
To ensure effective utilization of data, the experts discussed best practices regarding categorization and naming conventions in POS systems. Inconsistent categorization can lead to significant discrepancies in reports. As Sonya pointed out, “If product SKUs are labeled inconsistently—like using ‘Gorilla Glue’ for one product and ‘GG’ for another—this inconsistency can skew profitability analysis and affect training for retail staff.”
The conversation highlighted the need for businesses to establish clear naming conventions from the outset, which can help avoid confusion and foster more accurate data analysis down the line.
Cultivating a Data-Driven Culture
The panelists emphasized the need for cannabis businesses to develop a data-driven culture. They urged operators—especially those entrenched in the industry before the current data revolution—to embrace modern data practices. “It’s crucial to learn about data now; it’s the difference between being profitable and going out of business,” Rachel stated. She encouraged both seasoned and new businesses to prioritize data literacy within their teams and ensure that everyone understands how to analyze data effectively.
Sonya added that consultants play a vital role in bridging gaps in understanding, stating, “A good consultant does not just present reports; they help businesses connect the dots for sustainable growth.”
The Future of Data in Cannabis
As the cannabis industry matures, so too must its approach to data analytics. Dina described the potential for building robust data dashboards that track essential KPIs and facilitate better decision-making. These tools can enable businesses to view metrics holistically and understand the nuances of their operations.
The trio agreed that while the cannabis industry has made strides in data usage, much work lies ahead. The integration of various systems—such as POS, inventory management, and financial reports—remains a challenging landscape for many businesses. Creating a seamless data ecosystem will be pivotal as the industry continues to grow and face price compression.
Conclusion
The discussion wrapped up with each expert sharing their online presence and availability for further conversations on data integrity and analytics. With increasing competition and changing regulations, the ability for cannabis businesses to harness data effectively could very well determine their longevity in a challenging market.
For those interested in deepening their understanding of data-related strategies in the cannabis industry, connecting with the panelists through their respective channels offers a path forward in ensuring sustainable growth and profitability.
