031 - Precision Planning: Mastering Cannabis Financial Modeling

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• Introduction
• Hosts: Michael Williamson and Anders Peterson.
• Guest: Ian Miller, CEO of Catalyst BC. 
• Ian's background includes raising significant private equity, working in various sectors including high-end yachts, and being on the founding team of Loop Pay.
• Discussion Topics
• Financial Modeling Challenges
• Unique challenges in creating financial models for the cannabis industry, such as commoditization and margin compression.
• Importance of accurate KPIs and the variability of operator performance.
• Impact of regulatory environments and compliance on financial models.
• Investor Perspectives
• Key factors investors look for in financial models: detail, sobriety of assumptions, and realistic schedules.
• Importance of having skin in the game and available resources.
• Construction and Operational Challenges
• Unique construction challenges in cannabis facilities.
• Importance of power availability and realistic project scopes.
• Common mistakes: inadequate power planning and underestimating the complexity of projects.
• Revenue Projections and Profitability
• Critical variables affecting revenue projections and profitability.
• Speed to market, talent, capitalization, and achieving KPIs are essential.
• Detailed planning and high-quality execution are crucial for maximizing profits.
• Emerging Trends and Developments
• Shift from equity to debt financing.
• Trends in multi-layer horticulture and automation.
• Importance of energy cost analysis and life cycle costs.
• Customer Retention and Market Knowledge
• Importance of knowing your customer demographic.
• Strategies for building customer loyalty and retention.
• Examples from retail operations highlighting the significance of customer service.
• Personal Story and Motivation
• Ian shares a personal story about his father's experience with medical cannabis.
• Emphasizes the impact of cannabis on health and the motivation behind Ian's involvement in the industry.

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