Experts agree the California leisure marijuana market is extraordinarily difficult due to excessive tax charges, big illicit manufacturing and consumption in addition to an unsure financial system amid the coronavirus pandemic.
But whereas a lot of that is unfair to authorized marijuana enterprise house owners, one additionally should preserve issues in perspective: California is a brand new market with “brand-new baby regulations,” cannabis legal professional Katy Young mentioned Tuesday through the MJBizConNEXT Direct digital convention.
“It’s a challenging environment, it’s difficult to make money, but it’s not impossible to turn a profit,” Young mentioned. “Everyone is learning as we go along …. I do see the market improving over time as regulations mature.”
Young’s feedback got here throughout a panel dialogue titled, “Key Market Insights to Embrace the Future. Searching for Stability: Surviving in California’s Cannabis Market.”
Ideally, in fact, tax charges can be slashed, all municipalities can be required to permit rec gross sales and the illicit market can be squeezed out by statewide entry to protected, high-quality and competitively priced merchandise.
But, in the absence of main reforms in California, the specialists hit on quite a lot of key factors in the seek for stability in the market:
- Young, managing companion of Ad Astra Law Group: A large enough conflict chest to survive the ups and downs. She additionally suggested having a litigation price range.
- Robert Hunt, principal of Linneae Holdings, a non-public fairness agency: Manage your total provide chain. Picking your distributors and suppliers is vital, he mentioned. And “cash flow is king.”
- Avis Bulbulyan, CEO of Siva Enterprises, a cannabis enterprise improvement and consulting agency: Understand the road of enterprise you’re in and your place in the provision chain – and perceive the wants of others in the provision chain.
- Virgil Grant, founder and CEO of California Cannabis West Coast, a Los Angeles-based marijuana operator: To plant your roots and develop a sturdy enterprise, you want to perceive the business you’re working in, plus the tradition and other people you’re servicing.
– Jeff Smith