Cannabis 2025: Five New Year Resolutions

“Complaining is not a strategy. You have to work with the world as you find it, not as you would have it be.” Jeff Bezos

It wouldn’t be almost New Year’s Eve without some resolutions.

And not a moment to soon. 2025 will be a pivotal year for all MSOs and LPs – and a ‘make or break’ year for some.

While market dynamics remain difficult and regulatory reform is uncertain, there is still plenty of growth to capture, operating efficiencies to leverage and strategic capabilities to build.

Let’s run a thought experiment. If I was a typical cannabis CEO or Board, I would pledge to:

1. Undertake a strategic planning process

Now is the time to begin acting like a disciplined, fact-driven organization. There are enough data and industry lessons to make those hard strategic decisions. For example, should we exit markets and categories where we have little chance of showing a profit let alone winning?

2. Retool my operating model

The conventional way to organize and run a complex weed business may no longer be enough to significantly drive down costs and improve operational metrics.

We will uncover some ‘out of the box’ ideas to align capacity to demand, improve execution speed and achieve ‘total quality performance.’

For example, we can most definitely outsource non-core business functions and cull underperforming SKUs.

3. Prioritize key capabilities that enhance our value proposition

Recognizing that we can’t cut our way to growth, we will build value generation capabilities such as data analytics and leveraging ‘open source’ innovation technologies & practices.

4. Fix the balance sheet and cap table

Our sickly statements make it hard to attract new investors, reduce the cost of capital and make strategic decisions on a timely basis. We will refinance near term debt maturities with (hopefully) more attractive rates, secure more equity (if possible), scrap obsolete inventory and tidy up that cumbersome cap table.

5. Pay attention to corporate hygiene

Poor administrative practices are one of those ‘dirty little secrets’ in many weed companies. Addressing them is important to running a proper business, attracting the best partners & talent, and raising capital.

Hygiene opportunity areas include enhancing governance, adhering to codified professional practices and instituting proper reporting.

There are more resolutions to make but I am mindful that change and pivots are hard, and every business faces competing priorities.

What are your 2025 resolutions?

Call me. I help leadership teams solve difficult strategic, cost & organizational problems and capitalize on growth opportunities.

#governance #costreduction #balancesheet #planning #2025 #resolutions #MSOS #LPS