Let’s face it: Running a profitable cannabis dispensary is not as easy as you thought it would be. Whether you were once running a plumbing business or a Wall Street hedge fund, the visions of easy money in the cannabis business have, for most people, not come true. The cannabis industry is complex, heavy on regulations, taxed near to death, and at the end of an 80-hour workweek, you are lucky if you eke out a slim profit. Fun times, indeed.
This challenging environment is now even further complicated by the current pandemic, disruptions to supply chains, shrinking capital, and a dwindling customer base. The fact is, there are many dispensaries across the nation that are facing really tough times. Some may end up in costly and drawn out legal battles as stakeholders fight to get back scraps of their investments. Other dispensaries may be encountering partnership disagreements – because nothing can separate once harmonious owners faster than a stack of bills and no money to pay them.
Fortunately, there are some warning signs that indicate if a dispensary is in trouble, or heading for difficulties. Almost every troubled dispensary I’ve worked with has these traits in common, so take these to heart, and take steps to remedy these issues before it’s too late.
1. Have a weak manager and/or absentee owner
Sorry to break the news, but running a cannabis dispensary is not something you can do from afar. If you are not on site each day, you must, at the very least, have a very strong, reliable, and trustworthy manager in place that can serve as a Chief Operating Officer, to make sure that every aspect of the business is running smoothly. From security protocols, to evaluating and paying for incoming inventory, to ordering, to customer relations, to