By The cannabis industry is not a level playing field. Disappointing to say. But for the past three years, as a soon-to-be-opening pharmacy builder, I’ve experienced this lack of fairness first-hand.
It starts with the foundation of the industry. It’s time for anyone to start a business. Create a logo, launch a website and upload promotional content to social media. With just a few clicks… you are the business owner. That’s great, but it definitely doesn’t apply to the cannabis industry.
Getting started is not easy.
Up-and-coming cannabis entrepreneurs (just kidding) need a lot of capital to get started. And since cannabis is not federally legalized, entrepreneurs cannot access traditional bank loans. They need to fund their cannabis business from their own life savings or raise money for their family, friends and community. Unfortunately, not everyone has such privileges or access. This reality contributes to an unequal playing field in the industry, and the lack of legalization shows no signs of slowing down.
Jersey City-based attorney and cannabis advocate Jessica Gonzalez addressed the challenge in a recent article. new jersey biz interview. “It is very expensive to enter and survive in this industry and the limited capital options force us to seek out individual investors. An ever-changing regulatory environment, expensive service professionals, scarcity of real estate, social stigma, IRS Tax Code 280E, etc. combined create a high barrier to entry and a high survival barrier with a high need to maintain capital. “
As Gonzalez points out, fundraising is just one piece of the puzzle. Once you secure funding and decide to start your cannabis venture, you’ll be navigating an ever-changing regulatory minefield. This requires the help of high-value service professionals such as lawyers, operators and marketers who keep up to date with current laws and have the expertise to guide you appropriately.
The problem with the cannabis industry is clear. Funding is hard to come by, marketing is nearly impossible, and expensive consultants are prohibitively expensive. On the bright side, the cannabis business is never dark. Solutions are on the way, and they are embedded in many great, social equity-focused pharmacy management strategies.Social, an upcoming pharmacy in Park Ridge, Illinois. It’s not easy to get started, but as leaders, each of us commits ourselves to developing an industry of limitless opportunities, empowering those who want to work in this life-changing plant. must be held responsible for
Empowering your employees financially should always be your top priority.
The lack of equitable wealth creation in the cannabis industry makes it even more inaccessible. It’s unfair to say that entrepreneurs are the only ones who benefit financially when pharmacies and cannabis businesses succeed. Sure, employees may receive a small discretionary bonus at the end of the year, but it’s not factored into the profitability structure of the business. While early in the value chain, employees and producers, are being snubbed, pharmacy owners are poised to make huge profits.
Personally, when I started in the cannabis industry, I saw this dichotomy as plainly unfair and vowed to be a powerful force to change it. At Sociale, profit sharing is part of our DNA. Employees participate in the benefits of the dispensing pharmacy from the day they join the company. If everyone wins this way and employees decide to launch their own cannabis ventures, that ambition will be even more achievable. This is an important part of what the cannabis industry is preaching when discussing social equity. It is time for the industry and its leaders to develop an action plan to support this ideology. Embracing the concept of ownership not only among founders and senior leaders, but among employees at all levels can provide a valuable taste of entrepreneurship. In these situations, employees are often able to make a lasting difference financially, not only to the company they work for, but to themselves and their families at home.
Social capital license holders must pay it upfront.
Social justice pharmacies must embrace a pay-it-forward mindset among the communities they serve, especially those disproportionately affected by the war on drugs. It’s disappointing to see a pharmacy falsely labeling itself as “social fairness” for mere vanity.
Socíale adheres to certain commitments made to the State of Illinois, which has granted us a social equity license. This includes hiring people from underrepresented communities and advocating for cannabis social justice. These two objectives are deeply committed to us. As we explore the shape of the future, stay hopeful about what it will bring. Cooperation should be the motto rather than competition. If we could all work together to think beyond profit and aim to improve the greater cannabis community, life would be better for all of us.
