Author: Dave McManus

[ad_1] By Dave McManus Once relatively easy to break into, the cannabis industry now demands a leaner and more conservative approach to financial management along with precise forecasting and a great deal of patience. There are inherent risks, regulatory uncertainties, and financial challenges faced by new market entrants and established operators alike. As the market continues to mature, so will your needs and approach. Let’s take a look at some best practices for cannabis business startups within today’s landscape. Structure, Buildout, and Expectations First, consult with your attorney and CPA regarding the type of business you’ll run in the context…

[ad_1] By Dave McManus With the drive to federalization starting to accelerate, momentum is building around rescheduling cannabis. This would bring a host of changes that are frequently discussed, such as easier access to capital, banking, and the removal of 280E. A crucial big picture issue that is less front and center, however, is the type of competition that shifting legal boundaries will welcome into the sector. Specifically, the likely entry of two formidable forces—Big Pharma and Big Tobacco—could reshape cultivation and distribution. It could spell a dramatic shift for an industry that was built on small- to midsized companies…

[ad_1] By David McManus and Darren Gleeman Cannabis operators have plenty of challenges keeping pace with rampant industry growth. Rising competition, scaling labor, pricing pressure, and of course regulatory compliance create a web of issues that call for creative strategic thinking. Simply put, companies should be seeking every advantage to maintain momentum. An Employee Stock Ownership Plan (ESOP) is a structural weapon that is uniquely applicable yet vastlyunderutilized in the sector. ESOPs provide significant tax benefits, cash flow, and staffing advantages that can boost cannabis companies looking to capitalize on opportunities. At its core, an ESOP creates an employee-owned company…

[ad_1] After a period of solid growth, cannabis markets in many regions, including Massachusetts, have begun to plateau due to heavy competition and market saturation. While more mature states have been hardest hit, others like Vermont or those still in their growth phase are learning from peers and planning for what comes next. What we advise, and what the most profitable and prevailing operators have been doing all along, is to take an impartial look at business operations to determine cost-cutting and efficiency strategies that could boost your bottom line. The following eight areas of focus are a good place…