For cannabis companies struggling to stay afloat, investing in research and development (R&D) may appear as a financial burden. However, R&D is an essential component for long-term success. Here are some strategies that struggling cannabis companies can adopt to make R&D more manageable and affordable:
Prioritize: Companies need to prioritize R&D efforts by focusing on projects with the greatest potential for a positive return on investment. This may mean focusing on projects that will improve the quality or efficiency of existing products or developing new products that meet customers’ specific needs.
Partner: Companies can partner with other businesses or organizations to share the costs and risks of R&D. By collaborating with others, companies can access resources, expertise, and equipment that they might not be able to afford on their own. An open concept in R&D is more likely to lead to good innovation and differentiation.
Be Lean: Companies can adopt a lean approach to R&D, focusing on developing minimum viable products and testing them quickly and cost-effectively. This approach can help companies identify and address potential problems early on before they become more costly to fix. Working with partners while being lean can be a good solution.
Consider Outsourcing: Companies can outsource their R&D needs to specialized firms or consultants. Outsourcing can help companies access expertise and resources they may not have in-house while reducing the costs and risks associated with R&D.
Look for government support: Governments offer grants and tax incentives to support R&D projects. At Robust Solutions Pro, we have extensive experience helping companies plan and design R&D projects to access these government funds and tax incentives (SR&ED), which can cover up to 60% of R&D costs. By implementing these strategies, struggling cannabis companies can make R&D a more manageable and affordable part of their business strategy, leading to improved profitability and long-term success.