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Andy Singh of Nuvata: 5 Things I Wish Someone Told Me Before I Started Leading a Cannabis or CBD Business

An Interview With Candice Georgiadis

“How to navigate sale cycles and buyers in the industry. I was very confident that Nuvata would get into a lot of stores when we launched, but in reality, it was very rough. I wish I would have known that it would take several weeks to get into one store and that we needed to be more competitive on pricing and pitching.

As part of my series about “5 Things I Wish Someone Told Me Before I Started Leading a Cannabis Business” I had the pleasure of interviewing Andy Singh.

Nuvata gets it. From the cheery and brightly colored outer housings and oh, so intensely flavored oils, to their uniquely potent, proprietary strain balances, let’s just say that these memorable oils get me stoned! I’m excited about the taste and the smell and of course the buzz as they do it all for me. Nuvata makes my life easier and shall I tell you about all the compliments that I get from people when they see Nuvata for the first time? Well, there are a lot of interested people who know what time it is, cannabis speaking that is. Nuvata should be from another planet, because there is nothing that I’ve ever tried from this planet that even comes close to the intensity and awareness of this vape pen. I know the news has been all bad as of late surrounding bootleg oils from uncertain sources. Do yourself a favor, close your mind for a moment. Sure there are bad actors, but Nuvata is all about goodness, wellness, happiness and synchronicity. I’m a massive fan. Nuvata is purely delicious! Rest your mind, this is purely delicious.

Thank you so much for doing this with us! Can you share with us the story about what brought you to this specific career path?

I was always an appreciative cannabis consumer. I’ve used cannabis at different frequencies throughout my life, it’s helped me a lot in several ways. Additionally, I’ve always had a knack for studying origins. As an Indian, I have an indigenous attachment because it was culturally utilized centuries ago in India. Culturally, there was always love, admiration, and appreciation for plant medicine.

Upon graduating from university, I started a logistics business. It became a successful business, but I never had that passion needed to take it to the next level. When California legalized cannabis in 2016, I had the most powerful tool I needed to get into the cannabis industry: My dad’s blessings (as I come from a conservative family). My father rose above stigma and saw the opportunity while acknowledging cannabis is herbal medicine.”

Can you share the most interesting story that happened to you since you began leading your company? Can you tell us what lesson you learned from that?

It’s been fascinating watching the industry change throughout the years. Some states are riding the wave better than others. For example, California hasn’t reached its full potential due to entry barriers, licensing requirements, market fragmentation, the illicit market, and high taxes. Many regulators didn’t know what they were doing — the cannabis industry was new for both the people getting into the industry and for those high up in the government.

I’ve seen a lot of companies start with a lot of funding and end up going bankrupt. In this industry, being well capitalized doesn’t mean that you’ll be successful– burning too much money, operating at a loss, or having to raise more funds puts you in a tough position. So, one thing I’ve learned is to operate your business sustainably and to keep your growth parallel to the industry. For instance, there are only 900 retailers in California that are trying to service 45 million people. We need at least 5,000 retailers to match California consumer demand and flush out the illicit market, which is going to take several years. So in California, you need to be mentally prepared to grow your brand organically by taking it slow and steady.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

The most challenging part for Nuvata was getting our products into a store. The process could take anywhere from 4–6 weeks — and that’s if the first attempt was successful. If the buyer wasn’t interested, you had to go back months later and make a second attempt. We were also trying to get into several stores at once. Each store has a different personality and different buyers, so it was very challenging. When we launched in 2019, we hadn’t realized how saturated the market was and how tough it would be to get into these stores. Even though no one was doing it like us, with a carefully curated form factor, beautiful packaging, phenomenal flavours, and great effects, we still had trouble getting attention from physical stores.

I definitely overspent on marketing during that time, but it still wasn’t enough to get our products into stores. So the learning lesson here ties back to the idea of operating sustainably, leveraging leaner tactics for sales and marketing, and paralleling your growth with the industry.

Are you working on any exciting projects now? How do you think that will help people?

We’re very excited to expand our offerings. Currently, we’re working on the launch of our Flow series, a CBD-dominant ratio line with new flavors, which will help people achieve the therapeutic effects of a high-CBD strain without strong psychoactivity. Additionally, we are expanding in newer markets outside California for early 2023.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?

I don’t think I could have achieved what I have without my dad. He helped teach me ambition and willpower and he was a financial supporter from the beginning. His financial support allowed me to make some investments in the cannabis space. Eventually, I launched Nuvata, and it’s been amazing so far.. My dad gave me a jumpstart in the very beginning, and I’m so grateful for his support.

This industry is young, dynamic and creative. Do you use any clever and innovative marketing strategies that you think large legacy companies should consider adopting?

  • Requested to Omit

Can you share 3 things that most excite you about the Cannabis industry? Can you share 3 things that most concern you?

There are so many aspects of the cannabis industry that are exciting to me.

  1. “The novelty of the cannabis industry. Cannabis is an entirely new industry and we’re the first people to be a part of it. Cannabis regulation makes me think of the post-prohibition era when alcohol companies came in for the first time. The cannabis industry is primed for a massive explosion, and we’re paving the way by molding it with the popular vote. We’re only in the beginning — and that’s one of the most exciting parts.
  2. The opportunity for new brands and companies to rise. There is no Coca-Cola or Budweiser of cannabis. People always say, “this brand will be the next one.” Someone could launch a very strong and innovative brand, do everything right, and become one of the top five brands in California — but rankings are not permanent. This industry is so dynamic that there are still opportunities to make a name for yourself. I think that’s an inspiring place to be in the industry.
  3. It’s a fun business to be a part of! The cannabis community and the culture of the industry is really like no other. The networking mixers, investment mixers, and conferences all have such a fun, welcoming vibe. You get to interact with many different people — The diversity we have is unlike any other industry.”

There are a few parts of the cannabis business that are concerning, just like with any other industry.

  1. “The continued presence of the unregulated market. In California specifically, illegal operators only get a slap on the wrist when they’re caught. There are no real repercussions or hard consequences. Regulated cannabis products are much safer and of higher quality. Both the products and the business itself in the unlicensed cannabis market are much more dangerous. That’s the scary part — if they get caught, they’ll start up again. Illicit operations harm the legitimacy and safety of the cannabis industry as a whole, so it’s tough.
  2. The over-regulation of taxes and fees. In most legal states, you have the state taxes and then you have the city taxes. This double-whammy is tricky because it eats away at the profitability of your business. It’s so difficult to operate a cannabis business, and excessive taxes take the juice out of all the hard work. When restructuring taxes, regulators need to consider the long-term business feasibility of all of the industries and businesses in their state. Section 280E at the federal level is still one of the biggest challenges for a cannabis business.
  3. The difficulties with banking and access to capital. The cannabis industry still doesn’t have the accessibility that other industries have. I think when regulators decriminalize cannabis at the federal level, it’ll open many financial opportunities. Cannabis companies would gain access to so many financial resources and products if cannabis was decriminalized and the industry was treated as a standard business. There are a few initiatives in progress; the SAFE Banking Act went to the House of Representatives multiple times, but it’s been shut down by the Senate. Another bill to decriminalize cannabis completely has been approved by the house but is still sitting in the Senate. There is a constant back-and-forth and conflicts of ideology, but I’m pretty optimistic that our persistence will inevitably lead to reform.”

Can you share your “5 Things I Wish Someone Told Me Before I Started Leading a Cannabis Business”? Please share a story or example for each.

  1. “How to navigate sale cycles and buyers in the industry. I was very confident that Nuvata would get into a lot of stores when we launched, but in reality, it was very rough. I wish I would have known that it would take several weeks to get into one store and that we needed to be more competitive on pricing and pitching.
  2. How to balance a budget. As I mentioned, we spent way too much on marketing in the beginning. I wish I would have recognized the reality of our sales growth to stabilize us better instead of over-anticipating.
  3. The importance of having backups for our vendors. We work with multiple vendors from sourcing to service providers such as raw material providers and a co-packer. Sometimes, one of these vendors has its own internal issues, which screws up our supply chain. I wished I’d planned for multiple options. If one couldn’t perform, I would have had backups who could to avoid hurdles in our sales demand.
  4. The importance of relationships within the cannabis industry. I wish I’d participated in and joined the right allegiances and organizations. If you’re a part of the cannabis industry, you’re part of the ecosystem and are connected with other people who you can network with and potentially partner with. Recognizing this earlier on would have helped me in my startup phase.
  5. How to partner with a movement or other organization Many retailers, especially in California, will only work with brands that are partnered with a nonprofit or similar organization. Showing you care about specific causes helps your brand image and business performance.”

What advice would you give to other CEOs or founders to help their employees to thrive?

“As a leader or CEO, you have to empower and understand your employees. You have to care about what they care about. For example, if you put someone in a role where they can’t use their best traits and skills, you’re doing a disservice to both your company and your team. Additionally, you need to empower people through your leadership and make your gratitude evidently known for their contributions to the company. It’s very important to help the people who work for you feel appreciated and have them positioned to be as successful as possible in their defined roles.”

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂

“We really are one, derived from the same thing. I’d love to inspire a movement of love and just being able to celebrate each other with unity. Many people in the world have been closed off from that kind of support, and it may create toxicity within. Many people need a reminder that they’re not alone, mental health is very important and I uphold that dearly and plan contribute more towards it.”

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Thank you so much for the time you spent on this, and for your excellent insights!

Andy Singh of Nuvata: 5 Things I Wish Someone Told Me Before I Started Leading a Cannabis or CBD… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.