FARRIS FORWARD: Navigating the Volatile Waters of the Cannabis Industry: A Guide for Operators

FARRIS FORWARD: Welcome to Farris Forward, a new series of articles curated by Jon Farris and distributed by Highly Capitalized. The series highlights the insights and strategies being deployed by industry insiders and experts, offering a glimpse into the dynamic world of the cannabis sector. As the industry evolves, operators are encouraged to follow Farris Forward every fortnight as key players continually reassess and adapt their strategies to thrive in this vibrant market. The opinions in these articles are Jon’s alone. Copyright 2023 Jon Farris and Highly Capitalized.

LOS ANGELES–In the ever-changing landscape of the cannabis industry, particularly on the West Coast, operators find themselves navigating a market that is as promising as it is precarious. The sector, once a beacon of golden opportunities, has encountered a series of challenges, including regulatory shifts and market over saturation. However, industry veterans argue that with adaptability and strategic foresight, businesses can not only survive but thrive amidst the turbulence.

A Sector in Flux

Just a few years ago, the cannabis industry buzzed with a palpable sense of unstoppable momentum, drawing investors and enthusiasts alike. The market seemed to be on the cusp of a new era, brimming with startups and innovations. However, the sector has since faced a series of challenges, including regulatory shifts, bureaucratic hurdles, and the looming presence of the black market. These factors have contributed to an environment where the pace of change is accelerated, with one industry insider noting, “1 day equals 1 week, 1 week equals 1 month, 1 month equals 1 year, and 1 year equals 10 years in the cannabis industry.”

Adapting to the Pace

In response to the rapid developments, industry leaders advocate for a nimble approach to decision-making. They recommend that businesses reassess their strategies every 90 days to stay ahead of the curve. This approach, while potentially cumbersome, encourages operators to remain vigilant and adaptable, qualities seen as essential in a sector where the landscape can shift dramatically in a short period.

Strategic Diversification and Collaboration

To navigate these turbulent waters successfully, operators are urged to diversify their strategies, creating multiple pathways and contingency plans. Experts suggest a focus on horizontal integration, fostering partnerships with other operators to build a cohesive and complementary team of specialists. This approach, they argue, can outpace vertically integrated companies, offering a more flexible and responsive business model.

Furthermore, businesses are encouraged to leverage existing infrastructures, optimizing resources and capital expenditures to remain lean and agile. This strategy not only conserves resources but also facilitates quick pivots in response to market changes.

Visionary Leadership in Uncertain Times

Despite the sector’s volatility, industry leaders emphasize the importance of having a clear and compelling company vision. Drawing from business literature and personal experience, they propose a three-pillar vision framework comprising a profound ‘Why’, a set of core values, and a 10-year target. This vision serves as a guiding light, fostering alignment and inspiration within the team and instilling confidence in decision-making processes.

The ‘Why’ encapsulates the deeper purpose driving the business, transcending mere profit motives to ignite passion and action. Core values, the backbone of the company culture, outline the non-negotiable principles that guide the organization’s actions. Meanwhile, the 10-year target sets an ambitious, long-term goal, encouraging the team to think beyond the present and strive towards a shared, inspiring future.

What’s Next?

As the cannabis industry continues its relentless whirlwind of evolution, operators are urged to redefine their approach, grounding their businesses in fluid, adaptive strategies tailored to the sector’s unique challenges. By fostering adaptability, innovation, and collaboration, businesses can not only weather the storm but potentially set the pace for the industry’s future.

In this race, it isn’t sheer power or intellect that will see businesses through, but their ability to adapt and innovate. By embracing the chaos and forging partnerships that bolster strengths, operators can shape the next chapter of the cannabis industry, rising like a phoenix from the ashes to ride the wave back to the top.

Jon Farris Bio: Jon Farris is a seasoned entrepreneur with a significant decade dedicated to the cannabis industry. Weathering the tumultuous storms of the 2007 real estate crash, as well as the cannabis downturns of 2018 and 2021, he’s not just survived — he’s flourished. Emerging as an authoritative voice in the cannabis sector, Jon imparts wisdom on both survival and growth. Whether guiding a startup or rejuvenating a mature company, he offers invaluable insights to enhance every phase of the business journey.