In the cannabis industry, you have the ability to place yourself at all different stages of the supply chain from cultivation to retail.

But a business model that doesn’t get analyzed enough is vertical integration, where you have a footprint in every part of the supply chain.

It’s capital intensive but has plenty of benefits compared to specialization if you can pull it off.

In this episode, we explore:

• What is Vertical Integration?
• 7 Benefits of Vertical Integration
  • Better, Cheaper Products
  • Capturing Full Margins in the Value Chain
  • Control of Product Quality
  • Dependable Supply Availability
  • Nimble Operations/Product Offerings
  • Control Over Product Retail Pricing
  • Attractive to Big Investors
• 3 Benefits of Specialization
  • Creating a Comparative Advantage
  • Potentially Better ROI
  • Strategic Acquisition Target
• Vertical Integration Profitability Analysis
  • Importance of Data Systems
  • Understanding Retail Profitability
  • Profit Center Analysis
  • Assigning Retail Sales to Profit Centers
  • Allocating Direct Expenses
  • Allocating Indirect Expenses
  • Profit Center Margin Analysis
• Visual Example of Financials

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