Q – How did you get involved in the cannabis industry?
Diaya Roth: After 20+ years in corporate financial analytics, it was a no-brainer. Legalization has revolutionized all things cannabis. From real estate to real science, mom and pop shops to global IPOs and pot stocks. With 33 states currently offering some form of ‘legal’ cannabis, thousands of new businesses have launched in the last decade. Entrepreneurs from Alaska to Florida are experiencing massive challenges; ever changing laws, constant competitive price pressures, tax issues, financing and more. It’s never ending. Accounting and financial awareness are the lifeblood to the overall health of any thriving business. Yet, it’s intimidating to calculate the plethora of variables – but without it, businesses fail.
I thrive by helping business owners monitor, analyze and maximized their profits. Period. To know is to overcome. Financial analytics can reveal astounding intel. By identifying key performance indicators, production channels, sales channels, and trends, cannabis operators will be able to meet the challenges and overcome their competition.
Q – What are the greatest challenges for today’s cannabis business owners from a financial perspective?
Diaya Roth: Equality of financial opportunities. Imagine not being able to have legal access to banking or the ability to write a check or secure traditional lending? It’s not fair, easy or fun. Unlike any other business, current federal laws and international treaties place unfair limits on cannabis owners. Banking, lending, taxes and payment processing are the most obvious. The signing of the Farm Bill in 2019 may relieve some obstacles for hemp operators – but medical and recreational marijuana is still a taboo for banks. The SAR (suspicious activity reports) requirements handcuff banks from helping marijuana businesses. As an activist and analyst, I support local and national organizations that work legislatively to remove these obstacles.
Q – How do cannabis entrepreneurs overcome the massive challenges of financial viability?
Diaya Roth: If it were easy, everyone would do it. Over the last decade we’ve been able to see booms and busts. The cost of producing cannabis in accordance to state laws, fierce price competition, and lack of access to traditional banking tools makes success more challenging. But I like a challenge. This playing field makes it essential to monitor all things from Key Performance Indicators to Return on Investments. This isn’t always easy in the high paced daily grind of running a cannabis op. It’s often wise to have a dedicated experienced financial analyst to monitor, analyze and identify areas of loss and opportunities for increased revenues. It’s gratifying to help startups grow, and corporations expand by focusing on the absolute fundamentals of business – making money.
Q – What methodology does a financial analyst bring to cannabis operations?
Diaya Roth: Financial analysis is used to analyze whether an entity is stable, solvent, liquid or profitable. By evaluating your company’s financial statements on a regular basis, business owners gain important insights and valuable information that can drive important business decisions for a more profitable future.
A comparative analysis of the company Financial Statements will show how much money a business makes and retains, where you spend your money and where your money comes from. Business trends become more evident. We get a clearer view of trends such as customer retention rates, product revenues, product loses, overhead costs of the business and more. We can see what a business owns and what it owes compared to the revenue coming in to support it. Once we focus on where your company is winning and where your company is losing, we will together plan and execute a strategy based on the data to improve, grow, and expand your company.
For more information visit us at https://www.diayaroth.com