operations

Cannabis market participants are increasingly seeking more certainty across all elements of business risk. Price risk management is one of these key elements. In Part 1 of this article, our content partner Cannabis Benchmarks introduced the concepts of market price risk, volatility,...

Preparing to Sell Your Cannabis Business

The $2.1 billion Trulieve-Harvest acquisition is paving the way for a boom of M&A activity in the cannabis industry. 

A financial forecast is a roadmap for growing your business sustainably – here's how to build one. 

• A financial forecast helps you to track your progress month to month and know how your business is performing compared to the plan.
• Track variables such as seasonality, tourism, weather...

 

The faster your cannabis operation hits break-even, the sooner you become profitable – here's how. 

• Start keeping track your sales, number of transactions, weather, events in the areas, specific promotions, and headcount for the day and even big news headlines for every day.
• Examine...

Small business owners around the country are in need of help as more and more states ask their citizens to stay at home. Cannabis is no exception.

The physical layout of your cannabis dispensary can influence your sales, customer service, and overall growth. 

• The layout of your cannabis store impacts how you schedule and utilize your employees, control your inventory, and serve your customers.
• The layout is influenced by your...

These four key performance indicators are vital to keeping track of your operation's growth and success. 

• Dispensaries that just look at sales will miss bigger picture indicators of their business's health. 
• Other KPIs you should track are normalized sales, average gross margin, labor...

Recognize signs of fraud and embezzlement at your cannabis operation before it becomes a bigger problem.

• One way to spot embezzlement is if cash logs do not reconcile correctly against daily POS reports.
• If you start receiving notices that you're late on tax payments, that could also...

Learn how much of your cash is for taxes and for business operations to avoid penalties down the road. 

• Start with your taxes: calculate what your expected tax bill would be for each month, quarter, and year – that's what you need to have as your savings goal.
• Make sure your team is...

 

Learn whether a cannabis nursery is the right investment for your business. 

• Nurseries are a great way to diversify your cannabis operation.
• Nurseries can be quite lucrative if you focus on perfecting a strain. 
• Cannabis cultivation, excise, and sales taxes apply differently to ...

To grow sustainably, evolve your cannabis business by centralizing certain business functions at headquarters to create economies of scale and specialization. 

• Outsource inventory management, purchasing, accounts receivable and payroll to a central headquarters to take administrative...

A functional interview can help make sure you have the right employee working in the right role for their skillset. 

• A functional interview assesses an employee’s knowledge, skills, and experience.
• After a business combination, use functional interviews to determine what each employee...

Investments in real estate, licensing fees, and partnership agreements offer the opportunity for new revenue streams – here's how. 

• Lease a bigger space and invite other operators to open a business under your license, and use space in your location. 
• You may not sub-license cannabis...

The short answer: no. But there are other options.

• Federal regulations outlawing the sale of cannabis mean cannabis operators can’t file for bankruptcy.
• Garvin v. Cook and the case of Way to Grow, Inc. indicate the courts won't change their mind. 
• Cannabis and hemp operators facing...

The 280E regulation forces cannabis operators to pay their employees in cash – here's how to do so safely.

• Whether members of your workforce is classified as "employee" or "contractor" impacts how you pay them and what taxes you take out.
• Make sure every employee signs a receipt verifying...