You may have started your journey as an advocate, a patient, a hobbyist, or a risk-taker, but now you’re navigating a complex and evolving landscape of regulations, taxes, competition, and stigma. How can you stay true to your values, vision, and voice while also succeeding in the cannabis business? In this blog post, we’ll share some tips and insights to help you thrive in this industry.
The Power of Purpose
Having a clear and compelling purpose that guides your decisions and actions is important. Why do you want to be in this industry? What do you want to achieve? Who do you want to serve? How do you want to differentiate yourself from others? Your purpose should be authentic, relevant, and inspiring. It should reflect your values, skills, and interests, as well as the needs and desires of your target market. It should also be flexible and adaptable, as the industry and the market can change rapidly and unpredictably. By having a strong purpose, you can stay focused, motivated, and resilient, even when you face challenges or setbacks.
Listen to our interview with a former high-end cannabis dealer turned author and legal entrepreneur
In this 2-part interview, Simone talks with Eric Canori about his journey and transformation.
The Burden of Taxes
Another aspect of the legal cannabis industry that entrepreneurs face is the burden of taxes. Depending on the state and the type of business, cannabis taxes can range from 10% to 50% of the retail price, which can significantly reduce your profit margins and cash flow. Moreover, you may also have to pay federal taxes on your income, even though cannabis is still illegal at the federal level. This means that you can’t deduct many of your business expenses, such as rent, utilities, marketing, or salaries, and that you may be subject to penalties and audits if you don’t comply with the IRS rules.
Be aware of the tax implications of your business and plan accordingly. Consult with a tax professional who understands the nuances of the industry and can help you optimize your tax strategy. You may also want to consider structuring your business in a way that minimizes your tax exposure, such as using a pass-through entity, a tax-deferred retirement plan, or a charitable contribution. Moreover, keep accurate records of your income and expenses, and use accounting software that integrates with your POS system and your compliance platform. By being proactive and diligent with your taxes, you can avoid surprises and penalties, and maximize your net income.
The Promise of Partnership
A third aspect of the legal cannabis industry that entrepreneurs leverage is the promise of partnership. Unlike the black market, where you have to rely on your own resources and connections, the legal market offers you a network of collaborators and resources that can help you grow your business and your impact. Whether it’s through joining a trade association, attending a conference, or participating in a community outreach program, you can meet and learn from other Cannabis Business Minds who share your vision and values. You can also partner with other businesses or organizations that complement your strengths and weaknesses, such as a cultivator, a distributor, a marketing agency, or a non-profit. By collaborating with others, you can leverage your resources, reduce your risks, and expand your reach.
Be open to partnerships and actively seek them out. Research and evaluate the potential partners based on their track record, reputation, and compatibility. Be clear and honest about your goals, expectations, and limitations, and negotiate a win-win agreement that benefits both parties. Communicate regularly and transparently, and resolve conflicts or issues promptly and respectfully. By building a strong network of partners, you can enhance your value proposition, mitigate your weaknesses, and scale your business faster and more efficiently.
In conclusion, thriving in the legal cannabis industry requires a combination of purpose, tax planning, and partnership. By having a clear and compelling purpose, you can stay motivated and focused on your mission, and differentiate yourself from others. By being proactive and diligent with your taxes, you can optimize your cash flow and avoid legal and financial issues. And by building a strong network of partners, you can leverage your strengths, mitigate your weaknesses, and expand your impact. With passion, perseverance, and partnership, you can make a meaningful and enjoyable success in this exciting and evolving industry.