What’s the biggest challenge facing the cannabis industry right now, and how are you and/or your company addressing it?
The cannabis industry is not for the faint of heart. It’s my opinion that the biggest challenge facing the cannabis industry is the ability to expand and grow your business.
As most people know, federal illegality in the United States severely limits access to essential business services like banking, leading to operational inefficiencies and heightened security risks associated with handling large amounts of cash.
Moreover, the federal prohibition restricts interstate commerce, confining cannabis businesses to operate within individual state markets. This fragmentation impedes economies of scale, making expansion efforts cumbersome and costly while also perpetuating legal uncertainty regarding federal enforcement. Additionally, Internal Revenue Code Section 280E does the industry no favors. This provision prevents companies from deducting ordinary business expenses from their federal taxes, excluding costs other industries can typically write off.
Consequently, cannabis businesses face disproportionately high effective tax rates, reducing profitability and hindering reinvestment crucial for scaling operations. Combined with the patchwork of state-level regulations dictating everything from cultivation practices to retail operations, these challenges create a complex landscape that demands meticulous compliance strategies and substantial resources, further complicating efforts to expand across different markets effectively.
Where do you see the most exciting opportunity for growth and innovation in cannabis?
One exciting area of growth and innovation in the cannabis space is the rapid advancement in cannabis-derived products, particularly cannabidiol (CBD) and other cannabinoids beyond THC. These products are gaining popularity not only in recreational markets but also in wellness and medical sectors due to their potential health benefits.
I used to have family and friends always asking me about CBD and THC, but now they are beginning to ask about Delta-8 THC, CBN, CBG and so on. Innovations include novel delivery methods like nanotechnology for improved bioavailability, advanced extraction techniques for purer products, and the development of precise dosing formats such as capsules and sublingual strips.
Additionally, there’s a growing emphasis on sustainable cultivation practices and eco-friendly packaging solutions, reflecting broader trends towards environmental responsibility in the industry. These innovations are expanding the market appeal of cannabis products, driving growth, and positioning the industry for continued evolution and mainstream acceptance – and that my friends, is very exciting!
What’s one piece of advice you would give to someone looking to break into the cannabis industry?
For anyone looking to break into the cannabis industry, integrating education, passion, and grit is essential for success. Begin by educating yourself thoroughly on the industry’s regulations, market trends, and product innovations. Stay updated on legal developments at both the state and federal levels, as they can significantly impact business operations.
Passion is equally crucial; a genuine interest in cannabis and its potential benefits will sustain your motivation through the industry’s challenges and uncertainties.
Furthermore, cultivate grit—the perseverance and resilience to navigate the complexities of a heavily regulated and rapidly evolving sector. Be prepared to encounter obstacles such as regulatory hurdles, financial constraints, and market competition. Adaptability and a willingness to learn from setbacks will be invaluable assets.
Networking within the industry and seeking mentorship from experienced professionals can provide invaluable insights and support. Ultimately, combining education, passion, and grit will empower you to capitalize on opportunities, contribute meaningfully to the industry’s growth, and achieve long-term success in the cannabis space.
What is the most important thing you have learned from your experiences in the cannabis industry?
One important lesson I’ve learned from the cannabis industry is the value of perseverance. The journey of cannabis legalization and acceptance has been marked by persistent efforts from advocates, entrepreneurs, and policymakers overcoming numerous obstacles.
This perseverance is not just about pushing through legal and regulatory challenges but also about advocating for social justice and equity in an industry historically marred by stigma and disproportionate enforcement. Cannabis has a rich cultural and medicinal heritage that spans centuries and diverse global traditions.
Understanding and honoring this history while navigating its modern commercialization fosters a deeper appreciation for its potential benefits and responsibilities as a steward of this evolving industry. But perhaps most importantly, amidst the seriousness of navigating a highly regulated industry, it’s important to have fun and maintain a sense of enjoyment in what you do.
Whether it’s the camaraderie within the cannabis community, the excitement of innovation in product development, or the satisfaction of helping individuals improve their well-being, finding joy in your work sustains motivation and creativity.
What do you want your legacy to be as it relates to the cannabis industry?
As a lawyer in the cannabis industry, my legacy is deeply rooted in three core principles. Firstly, I strive to be renowned for my depth of knowledge and expertise in cannabis laws and regulations. Being a trusted advisor means being at the forefront of legal developments, providing clients with the most informed guidance possible to navigate this complex landscape effectively.
Secondly, I aim to be known for my approachability. Building strong relationships with clients based on trust and empathy is essential. I want clients to feel comfortable approaching me with any concerns or questions, knowing they will receive thoughtful and personalized attention.
Lastly, my legacy hinges on my commitment to hard work and achieving the best outcomes for my clients. I am dedicated to putting in the effort necessary to ensure my clients have every opportunity for success. Beyond individual cases, I aspire to contribute positively to the broader cannabis industry, advocating for fair policies and ethical practices that promote its sustainable growth and societal acceptance.
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