Most economists and pundits describe the cannabis industry as an emerging market. By default, this means there will be growing pains as expansion, contraction, and mergers occur.
All three dynamics create unique challenges.
For this post, we’ll address industry contraction. Undeniable signs of a downturn have garnered news coverage. Recent articles by Marijuana Business Daily and The Motley Fool address nationwide layoffs.
More layoffs likely, but so are acquisition opportunities.
Several experts, however, said the trend of layoffs isn’t cause for concern but simply a reminder that careful financial calculation remains necessary.
Marijuana Business Daily
U.S. cannabis jobs are being lost predominately as result of high taxes.
This means cannabis companies have no choice but to align their work force to match up with the currently challenging conditions throughout North America.
The Motley Fool
Bottom line large, well-funded cannabis firms are squeezing out smaller (mom and pop) operators. Options for the 'little guys' are limited. Fight the onslaught of legal and illegal competition or develop an exit strategy.
Regardless of the situation — expansion, contraction or merger — a multi-pronged action plan is required to survive what many view as a temporary market correction.
Canna-Consulting is a cannabis consultancy that offers management consulting and capital introduction services.