As we all wait for federal cannabis policy reform, marijuana businesses continue to face challenges. To overcome obstacles and stay afloat, some operators concentrate on innovation, others play small and some focus on their balance sheets. However, some have managed to scale their operations and guide their businesses to success.
Questions remain, like how to reach critical mass and how to get to the point where a growing company becomes self-sustaining and no longer needs additional investment to remain economically viable.
Secrets to successfully scaling a marijuana business will be fully discussed at the upcoming Benzinga Cannabis Capital Conference on April 16-17, by such industry titans as Seth Yakatan of Katan Associates International, Bryan Gerber of Hara Supply, and Jon Levine of MariMed MRMD.
Operating Within Constraints
Yakatan, co-founder and partner at Katan Associated International and a LinkedIn creator, has more than 35 years of experience as an entrepreneur, corporate finance professional and recovering investor. He actively supports public and private companies in sectors such as life sciences and cannabis to obtain corporate finance and asset monetization objectives. He’s behind $1 billion worth of raises and sale of 22 companies.
Speaking of investment complexities, Yakatan previously told Benzinga that "cannabis is just constrained from a capital perspective, and it's constrained functionally now for three reasons." According to him, those three reasons are federal illegality, unprofitable investments and underperforming obstacles.
Not being optimistic about regulatory changes happening any time soon, he advises companies to use what they have and operate the best they can within the market's constraints and to remain ready for eventual reforms.
In addition to Yakatan, experts who will share strategies for achieving sustained growth in a competitive market include Brian Gerber and Jon Levine.
‘Unsexy' Alternative
Gerber is a co-founder and CEO of the world’s largest manufacturer of cones and combustibles, Hara Supply. The company operates 250,000 square feet of the highest-quality production across 15 facilities, producing 100 million cones monthly for mainstream brands such as Jeeter and Zig-Zag. It is the first in the industry to be ISO, GMP and Health Canada-certified.
"We always like to say we’re that sleeping giant behind a lot of companies," Gerber recently told Forbes' Will Yakowicz.
Publicly traded cannabis companies like Verano Holdings VRNOF, and Curaleaf CURLF are also among Hara's regular customers. According to Forbes' estimates, the company is more than just profitable with revenue of some $75 million per year. Based on the number of cones produced a month, Hara accounts for 30% of the market.
The entire cone industry, based largely in Malaysia, Indonesia and India produces approximately 350 million cones a month. Hara controls some 30% of the market in terms of volume.
“Gerber acknowledges that Hara's business model is decidedly unsexy, particularly within the cannabis world,” Yakowtich noted in Forbes, in that Hara does not touch the cannabis plant.
Consistency And Love
Jon Levine is CEO and president of one of the most financially sound companies in the cannabis industry, MariMed. After 10 years in the cannabis space, 13 years in credit management in banking and manufacturing and 19 years in commercial real estate development, Levine has guided MariMed to outstanding success.
At the 2023 Benzinga Cannabis Capital Conference in Miami, Levine shared with the public that the road to success is consistency and loving what you do.
"We love our flower and we really care about the product that we put out," Levine said, adding that the company remains consistent with every cannabis flower it grows and every product it sells.
Come and learn how to reach critical mass from these three extremely successful industry veterans.
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!
Photo: Courtesy of 24K-Production via Shustterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!