Why Cannabis Businesses Will Fail



While the number of businesses that have failed is relatively small, many more failures are coming.

Summary:
Limited License States
Population Matters
Adjoining States
People Make or Break It
3 Skillsets You Need
The “But I’m Not a Stoner” Bias
An Overpaid C-suite

Let’s use Flow Cannabis recent failures as a learning example;

By vowing to help underground cannabis farmers in the Emerald Triangle become legal growers, Flow Cannabis Co. became the vanguard of the historic Northern California growing region. “At the end of the day, I felt like they used the farmers and the product that they got to be able to attract more investment capital.”

The business recently weathered layoffs and executive departures, including its president, chief operating officer and a co-founder of the company as well as the interim CEO.

Further accelerating Flow Cannabis’ fall was the fact its high-stakes wager was predicated on the federal government legalizing marijuana.

Flow Cannabis fell victim to many of the same factors that have undercut cannabis and mainstream businesses alike.

Its plight offers lessons for cannabis industry executives and investors, as well as small marijuana farmers, by shedding light on key issues that can trip up a company, an investor or, in this case, an entrepreneur.

Think overly ambitious goals, ill-advised assumptions (Uncle Sam would legalize marijuana sooner than later), tumbling wholesale marijuana prices and failure to read contracts carefully. A limited market makes success likely. A team that covers all the bases, is not filled with ego, and is paid reasonably will do well.

The future will see more cannabis businesses go under than have so far, but much more money will be made than lost.

Show Notes:
Why Cannabis Businesses Fail
https://www.benzinga.com/markets/cannabis/22/01/25148915/why-cannabis-businesses-fail
Once-high-flying Flow Cannabis Co. falls to earth amid woes, offering lesson for others
https://mjbizdaily.com/once-lofty-future-of-flow-cannabis-co-and-flow-kana-brand-now-uncertain/

Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/

Episode 878 The #TalkingHedge…
Your Cannabis Business Podcast.
​Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com

Music Info:
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018Artist: LuxrayBeats

Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data

Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.

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