Joey Arsenault uncovers cannabis seedlings at Tilray a medical marijuana grow-op in Nanaimo August 14, 2014. Mail)John Lehmann/The Globe and Mail
For 20 years, I have helped early-stage, entrepreneurial companies succeed in some of the most strictly regulated and complex industries: pharmaceuticals and biotechnology. As the first-ever CEO of Tilray, Canada's leading licensed producer of medical cannabis, I now find myself at the epicentre of one of the world's newest, fastest-growing and most regulated industries. What does one need to succeed as an entrepreneur in an emerging industry, particularly when the pace is swift, the scrutiny is intense and the competition is fierce?
1. Customers come first. Any good business strategy prioritizes the relentless pursuit of exceeding customers' expectations. It is incumbent on young companies to live up to their customer care promises and implement policies reflecting a non-negotiable commitment to world-class service, respect, transparency and responsiveness.
2. Think big. Starting out small doesn't mean thinking small. Take medical cannabis for example. Right now, Canada has the most advanced medical cannabis market in the world. That early leadership translates into a global opportunity to lead in terms of research, development and sharing best practices. Fledgling companies need fearless leadership comfortable with fundamentally transforming the lives of their customers and rising to the challenge of their industries.
3. Have a vision that reaches beyond profit. Building an enduring company requires articulating a vision, mission and value system that employees and customers can rally around.
4. Surround yourself with experts. Last year, Canada radically transformed access to medical cannabis. As the system reinvented itself, changes were needed to help professionalize this emerging industry. For us, that meant engaging a spectrum of experts including those in law enforcement, patient advocacy, scientific research botany and horticulture. In my opinion, developing this kind of trusted, multi-disciplinary brain trust, especially when you find yourself navigating unchartered waters, is a distinct success factor, regardless of the industry.
5. Hire people with passion. Expertise doesn't always equate with ambition or passion. Look for professionals and partners who see both the career and business opportunity and who will join your team because they are motivated by what they can help you build. Make sure they stand behind your vision.
6. Stay focused but flexible. Small business operators can easily become overwhelmed by opportunity. Entrepreneurs are hard-wired to see potential at every turn, but establishing a new company requires discipline. Ask yourself if new opportunities truly serve to build your credentials, enhance your relationship with your consumer, or elevate your brand. At the same time, don't be afraid when opportunity knocks.
7. Innovate. Successful entrepreneurs are vigilant about looking for ways to improve their products and processes. Sometimes, this means significant pivots or investments; other times, simple, candid conversations with your customers. We should always be asking interesting questions whether that's broadly, perhaps in the context of clinical trials, or more personally, sitting down with a customer one-on-one. Those questions and conversations are the impetus of true innovation.
8. Embrace the regulations. It is critical to build strong, effective and accountable relationships with government agencies. We need regulations to help ensure quality and safety. Like any relationship, however, we also need ongoing dialogue that helps set expectations and define sustainable processes that respond to the interests of both customers and business.
9. Operate ethically. Few things undermine success more than a lack of professionalism and ethics. Every business needs to be as committed to ethical, transparent business practices as it is to producing quality products and turning a profit. Trust will drive your success and the lack of it will sink your entrepreneurial ship.
10. Plan for tomorrow today. New businesses can be fraught with day-to-day challenges. A long-term view helps you not only stay true to your original plan, but also helps avoid pitfalls like investing in systems or resources you need to replace in twelve months. Take a hard look at what a year or five years from now might look like in your industry and what you need to do to thrive.
Greg Engel, a pharmaceutical executive with a history of leading early-stage companies to new levels of growth, is chief executive officer at Tilray, a Health Canada licensed producer and a national leader in the production and distribution of premium medical cannabis. At Tilray, Mr. Engel leads a growing team of industry-leading experts working to advance the science, safety, and efficacy of medical cannabis for patients and physicians in Canada and around the world.
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