Cannabis path to profitability requires close look at operating models

(This story is part of MJBizDaily’s premium subscription service, Investor Intelligence.)

For investors, it is critical to know the details of how a cannabis company in this hypergrowth industry plans to bridge the gap between its current money-losing reality and the vision of a profitable future.

The “lose money now, make money in the future” operating model is not unusual for a relatively new industry. Companies are spending tremendous amounts of money to establish first- or early mover advantage, win market share, establish brands and expand geography.

The journey to profit will require operating model leverage (profit margin expansion).

Investors need to know where that leverage will come from.

To access the full story and in-depth cannabis investing analysis, click here.

2 comments on “Cannabis path to profitability requires close look at operating models
  1. Maxcatski on

    Well, I still can’t believe that no one can make money selling pot. The black market managed to be profitable every single year.

    Yes, spend money to make money. But make money, not losses!

    Reply

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