The cannabis business is tough. Competition is increasing, consumers are demanding higher quality products, and prices are falling significantly. Many operations are struggling with sales velocity, compliance costs are rising, and with new tax, labor, environmental, and regulatory requirements, many operating in the farming space are failing, fast.
This piece will summarize an oral presentation I give designed to help farmers achieve financial success despite the challenges listed above. This 9 point plan, if taken seriously and executed well, can help you not only survive, but thrive in what promises to be an increasingly crowded space. Subsequent posts will flush out these topics in greater detail.
- Understand the Operating Environment – the farming space entails significant risk, but offers significant opportunity as well.
- Conduct a Feasibility Study – given your skill set, expenses and production parameters, can you operate in the new financial paradigm?
- Professionalize and Formalize Your Operation – Create your mission and vision statements, and determine your target market and product offering appropriately
- Focus on the Profit Function – Clearly understand revenue and costs
- Understand Developing Resources & Stay Connected and Informed – Get plugged into industry data and developing resources
- Work Smarter (and maybe harder too) – Create farming and business systems and put in the time necessary to be successful
- Be Thankful and Honor The Plant – Working with the plant is a blessing, remember that always and behave according
- Care For Yourself Physically and Mentally – Farming cannabis is not for the feint at heart, physical and mental strength are important for longevity and success
- Manage Business and Personal Finances Prudently – Solidify company financials and undergo a personal financial planning process as well