Why Some Cannabis Companies & Leaders Will Never Get It Right

…and how to avoid the fatal consequences

The holiday season is a time of reflection, and I’ve been busy.

Despite solid fundamentals and the potential for reform in 2025, the cannabis sector is in a dark period both financially and psychologically.

In a capitalistic economy but especially in emerging industries, most companies will fail. This is a fact, and cannabis is no exception.

I don’t say this with glee or to come back later as one of those “I told you so” guys. Lots of jobs, investor money and careers will be negatively impacted.

However, this is not an inevitability for every company.

We can’t forget the sage words of English theologian Thomas Fuller who wrote, “the darkest hour is just before the dawn”

This post is a missive of hope – and a call for hard-headed thinking and decision-making.

Going into 2025, every leadership team must recalibrate their thinking and emotional state. First off is obviating 3 self-defeating sins:

(1) Trusting you have all the relevant facts

(2) Thinking you have all the necessary competencies

(3) Believing you can do everything

At the root of these misperceptions are some management and psychological flaws, such as:

--> Having the wrong people in the wrong roles;

--> Trying to strategically do too much with too little;

--> Lacking key data management and analytics capabilities;

--> Clinging to false assumptions in areas like market growth and consumer needs;

--> Suffering from hubris, ideology and bias - or an inability to face contradictory facts as well as admit and learn from your mistakes;

--> Underestimating the time and effort it takes to optimize production (quality, yield, capacity), drive down costs and build consumer-relevant brands.

These missteps should not be a revelation for introspective managers. They are addressable if there is a genuine desire to face internal and sector challenges and the will to do what’s necessary, when necessary. Otherwise, 2025 will be the last year for many businesses.

As usual, Shakespeare got it right 425 years ago. In the play, Julius Caesar (Act IV, Scene III), he wrote-

“There is a tide in the affairs of men, which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life Is bound in shallows and miseries”

The Bard spoke of the importance of timing and making decisions when the opportunity or necessity arises. In cannabis, that time is now.

Next week, I will publish my 2025 New Year’s resolutions for the cannabis industry.

#2025 #planning #strategy #LPS #MSOS