Data is the fastest growing sector of the cannabis industry, and dozens of cannabis software packages generate millions of records a day. Everyone agrees that having data is incredibly valuable to a business and team, if the tools are available to put the data to work for you.
Focus on the five core data sources
To unlock the power of data, the first step for any team is to clarify, in plain English, what they’re trying to accomplish. This can be goals, objectives, budgets, or any other perspective on where you are today and where you’d like to be tomorrow (or in a week, quarter, or year). Once the team agrees on what everyone is reaching for together, the next step is to understand what data (and what data sources) can support those goals and enable the team.
Over 90% of all business questions can be answered with data from one of the following five sources:
3.Point of sale (POS) software
5.External industry reports/services
Seed-to-sale software is often mandated by state or federal government, so that is usually a good place to start. Every business has revenue and costs that must be intimately understood—so that is another core data source that impacts everything in the business. Sales drive revenue, so mastering the metrics behind wholesale purchase orders and/or retail store orders is also very important. Between seed-to-sale, accounting, and POS software, you will also be able to understand inventory as well as forecast future supply and demand.
Oftentimes businesses will augment software solutions with internal spreadsheets or models, and these files are usually very important for operations, budgeting, and planning. It can be hard, but very necessary, to collate the information in a software system with internal spreadsheets. Automated workflows or Excel-embedded reports can save hours of time, energy, and frustration of doing manual data entry.
Finally, where internal data don’t suffice for business needs, there are other businesses that sell reports, benchmarks, or other industry-aggregated metrics. These are particularly important in investments, expansions, mergers, and acquisitions.
Do you feel like you’ve mastered each of the top five cannabis data sources within your business? Where would you like to deepen your awareness or improve your insights? We always love to hear from you on our contact page at cannabisbigdata.co/contact.