I applaud the individuals in the Cannabis Industry for their vision, passion and staying power. This industry is filled with enthusiasts who believe in the plant and its potential to positively impact the economy, ancillary businesses, social equity, and our communities. Over the past five years, I’ve had the privilege of attending tradeshows and meeting countless people in the Cannabis industry, and I can say watching an illegal industry build with the hope of becoming a legal industry has been amazing, frustrating, and inspiring all at the same time.
Working on the construction side of cultivation facilities has allowed me to stay connected to the
Cannabis industry without being fully immersed. While I enjoy Cannabis on occasion, I don’t believe it’s the answer to everything. However, I do believe it’s an extraordinary plant where we will discover many
health benefits in the future and be able to enjoy recreationally like distinct fine wines and beyond. It’s time for the Cannabis industry to step up, grow up and embrace reality. To do that, we need to get rid of a few misconceptions that I’ve seen in the early stages of developing a Cannabis company and its cultivation facilities, including the following.
1. “I’ve already been running an illegal Cannabis operation and doing well. When it’s legal, I’ll make a fortune.”
Not so fast. Running a legal business, following regulations and paying people fair wages is not
that easy. Before working at DAG Facilities, I ran a business for 20 years and know firsthand how challenging it is to make payroll, sell new business, maintain high product quality, and find the right employees and partners. It seems that many new Cannabis companies rush ahead without proper planning. Instead, they need to take the time to map out every detail of their business and their cultivation facility. Get a clear understanding of what they’re building and how much it will cost, what it will yield, and who is going to be in charge of what. The more a company plans, the more prepared and realistic it will be about what it’s going to take to succeed.
2. “My guy grows the finest weed in (insert your state here). He’s going to kill it for me!
Just because someone you know has grown some award-winning strains doesn’t mean he or
she’s ready to manage a full-scale facility and business. You can be a great cook, but not know
how to run a catering company.
When stepping up to a larger operation, make sure to know your limits. While it’s great to
understand the basics of cultivation, managing a multi-million-dollar business and facility
requires expertise in construction, engineering, design, environmental controls and operations.
Recognize your strengths and hire the right professionals to handle the rest.
3. “This technology is going to make my life so much easier.”
When attending trade shows, it’s easy to get excited by dazzling new equipment such as
automated trimmers, mold-fighting machines, energy-saving devices or technology that can
watch and record your plant every second of the day. But diving into all this tech too soon is like
buying a fancy pair of boxing gloves before learning how to fight.
Companies can’t rely on gadgets if they haven’t nailed the basics first. It’s important to perfect
the lighting, water, nutrients, and humidity before geeking out on the latest tech. Set aside
space for R&D to test new solutions, but don’t let the shiny objects distract you from the
fundamentals.
4. “I’m going to grow as much as I can because everyone just loves my weed!”
Unless a business has guaranteed sales, starting conservatively and efficiently is important.
Maximizing canopy size might sound like a good idea, but it’s one of the most common mistakes
I see. Successful businesses are all about efficiency. Cannabis entrepreneurs need to be
concerned with building a well-oiled machine where they can easily add on capacity if sales and
the market demand it. Building a business means being agile and winning the long game.
“Everyone loves weed. That’s why I’ll eventually succeed.”
The industry is catching on that running a successful Cannabis business is extremely difficult. Money is hard to find, and consolidation has been going on for years. Just because a company is selling Cannabis, a high cash crop, doesn’t mean it is going to succeed even if it becomes federally legal and rescheduled or descheduled. Passion for the plant is not enough. Planning a cannabis business is an intense, upfront effort, just like training for the Olympics. It requires precision, careful budgeting, and discipline. Lay the foundation properly, build a great team, brand, and operation and you just may cross the finish line ahead of the competition.
