Marijuana Business Magazine May-June 2020

May-June 2020 | mjbizdaily.com 55 in new ways. “The best entrepreneurs are those that think outside the box and support their innovation with financial data,” Colon said. Start with your price strategy: Do your prices align with actual market demand? Then turn to your product strategy. “More products do not mean more revenues,” he said. Analyze the data you have to answer these questions: • Which of your products are in the highest demand? • Which provide the best margins? • Are there cross-selling/upselling opportunities you could be employing to generate more profit from a single customer? • Where are you seeing waste? COMMUNICATE WITH YOUR PARTNERS—THEN KEEP COMMUNICATING You have many partners, from your vendors to your landlord to your customers. In times of crisis, they’re stressed, too, so make sure you’re communicating changes and challenges to them. “Proactive communication demonstrates you recognize the problems and are taking control of the crisis,” Freeman said. This helps build trust in times of trouble. Colon and Freeman suggest executives: • Expedite receivables and ensure quick payments to optimize cash flow from accounts. • Create a detailed invoicing process that is customer-centric. • Quickly advise partners of delays or disruptions. This allows them to optimize and adapt and can help prevent future problems. • Use existing communication tools to stay in front of customers. Let them know how you plan to meet their needs. • Consider personal calls to key customers. Such moves “will be remembered long after the crisis is over,” Freeman said. • Make sure they are listening to their partners and consider seeking input from outside advisers for a more well-rounded outlook. DON’T FORGET THE TAXES “Careful tax planning at this stage, informed by a deep understanding of re- cent tax code changes, can have a major impact on immediate cash flow and long- term tax burden,” Colon said. Tax-relief programs are being intro- duced at all levels of government, from federal to local. But not all of these programs will be available to cannabis companies. Make sure you understand what does and doesn’t apply to your business and consider consulting tax experts to keep you on the right side of the tax code during a crisis. Download the free COVID-19 Scenario Planning Calculator at mjbizdaily.com/covid-19- scenario-planning-calculator . Adult-Use Cannabis Sales by Day and Market: Percent Change Vs. Same Day in 2019 California Washington state Nevada Colorado