(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.
- 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]