(This is an abridged version of a story that appears in the July issue of Marijuana Business Magazine.)
Recessions are a time for cost control, but they can also herald opportunity — especially if your industry proves as resilient as cannabis appears to be in the current downturn.
Deciding where to cut costs and/or where to invest in times of economic uncertainty requires research and careful consideration as well as the discipline to rein in expenses and eliminate excess.
These times also demand the foresight and nimbleness to spot opportunities and move on them quickly. Identifying the right investments or costs to cut isn’t easy, so Marijuana Business Magazine gleaned insights from executives across the industry:
- Assess what are essential costs and what are not.
- Be ready to delay state expansion plans.
- Alternately, consider accelerating expansion plans.
- Consider sharing licenses through partnerships.
- Manage your workforce effectively.
- Don’t gut your marketing department.
- Retrain your existing employees to take over new responsibilities.
- Renegotiate bills and contracts.
- Leverage recessionary discounts into bulk buys and higher margins.
- Create an inventory-management plan.
- Be aware that THC delivers more bang for the buck.
- Recessions offer opportunities to introduce cheaper products.
- Dream up products by using inputs in new ways.
- Control costs through partnerships.
- Keep an eye out for real estate deals.
- Don’t wait to take these steps in bad times; make them habits in good times.
To read more detail about these strategies for getting your business in fighting shape, click here.
Omar Sacirbey can be reached at [email protected]