That is a loaded question. Most everyone reading this has probably now realized they have already been a cannabis CEO for many years.It is just a different game.It’s a legal game.It feels different.It is.
For those cannabis-touching businesses who have taken the courage in changing and shaping society, we hope our insights, experiences and stories about cannabis finance may be useful in helping you continue to grow into a successful and legal business.
So, now your wildest dreams are coming true.The American economic concept of a ‘Free Market’ has arrived.It is now time the world knows you are a CEO.A CEO who is in this for the longrun.In it for both monetary reasons and for personal satisfaction to know you contributed to changing and helping society.
The number of new customers who never knew you ever existed is suddenly demanding your product.
The opportunity to grow like never before is certainly exciting.Prosperity, and legality, is in your grander vision.But then there are too so many hurdles like never before.Legal, financial, regulatory, state, federal and local, and more.
Therefore, as a CEO in the new marketplace, it simply means a shift in how you manage, strategize, market, build your brand, and most importantly, how you perform at your new restructured Cannabis CEO job description.
Change is hard for all of us.But we must change with it or we risk losing it all.No market is forgiving, cannabis will be no different than any other.
It is not just the taxes (though these are challenging at the federal level), it is the lack of planning, lack of basic written goals, lack of creating budgets, lack of forecasts, not really knowing the profitability of a business, not having complete financial records and receipts, mispriced products, managing price risk, and, yes, the unpaid tax bills.
Now those cannabis businesses need investors or loans, or they want to grow new strains or add more dispensaries.Two years of complete financial records that adhere to GAAP, state and/or IRS regulations are required, plus you must have your taxes paid before anyone will infuse your business with cash.
For that, we really understand and have a lot of compassion for those who will likely lose it all.Hopefully they can sell.Often, we know selling means giving away their business.
Since I have worked in major corporations (Ford, Enron, Koch and Shell) as an accountant, controller and director, and have done business worldwide, all I can share is that markets are not forgiving.