What is COMPASS?

News 9 min read

Emerging markets are new frontiers, brimming with exciting opportunities, as well as speculation and potential risks. Understanding the complexities of a nascent and highly fragmented market like cannabis or hemp doesn’t happen overnight. It takes years of experience learning lessons through both failure and success. 

In many ways, Gateway Proven Strategies “GPS” is a think tank consisting of industry pioneers, along with a wide range of subject matter experts (“SMEs”) both within and outside the cannabis and hemp space. The collective wisdom of these academics, entrepreneurs, seasoned executives, former law enforcement & regulatory agents, politicians, and thought leaders, is leveraged to drive solutions for our clients. We have an in-depth understanding of what makes businesses, especially in emerging markets, succeed, and the shortcomings or missteps that could lead to failure. GPS collates that collective wisdom into an algorithmic system that quantitatively measure a company’s success potential. The result is COMPASS: a comprehensive assessment guiding the client toward improving their odds of success, pairing investigative due diligence with predictive analytics for investments in industries like cannabis and hemp. 

COMPASS started life as a supplemental, industry-specific due-diligence program leveraged by GPS’s President and Co-Founder, Bob Hoban to service Capital Groups requesting advice on investment opportunities. GPS’s Chief Operating Officer, Deanna Callahan, built on this foundation and converted qualitative criteria into a quantitative algorithm. The COMPASS algorithm measures companies against key performance indicators (KPI’s) that account for industry-specific nuances. (As for the navigation-centric name, well, we are “GPS” after all.)

COMPASS is an acronym for Comprehensive Opportunity Measurement Predictive Analytic Scoring System, but its function certainly lives up to its shortened name. Historically, the magnetic compass was an important advance in navigation because it allowed mariners to determine their direction even if clouds obscured their usual astronomical cues – such as the North Star. At GPS, our COMPASS is an important advancement in navigating the nuances of emerging markets – like the nascent cannabis industry – because it allows entrepreneurs to determine the best point of entry, market positioning, and strategy to steer their business toward success. It also serves investors and acquirers well in their voyages.

Today, COMPASS has evolved into a rigorous 150-point scoring system, viewed through 10 distinct lenses, and it has been leveraged to quantify the success potential of dozens of opportunities, uncovering critical gaps and valuable opportunities for our clients. COMPASS provides insight on predictive measures of the survivability of a company as well as its ability to diversify through future market changes. It leverages a combined 200+ years of industry expertise – and that is no exaggeration – we did the math! Its metric of evaluation is cutting edge and molds to serve both plant-touching cannabis operations as well as ancillary companies. We are proud of what we have developed but like any great innovation, COMPASS is fluid, continuing to evolve as our expertise grows.