Richard Lee’s Post

💥 The Downfall of Giants 💡: Lessons from the Michigan Cannabis Market I recently came across an article about Tend.Harvest.Cultivate. closing its Adrian facility, one of Michigan's first licenses. While the company attributes its downfall to issues like dehumidification in their $40+ million facility, I think the real problem runs deeper. This is a textbook case of shiny object syndrome: They pulled in a $40 million loan, focusing on building a rocket ship without learning how to master a paper plane first. They entered the cannabis space as outsiders, prioritizing greed over knowledge and assuming money alone could guarantee success. Around 18 months ago, we were reading an article that said Fluresh had a $40 million note due at the end of 2024. Based on market trends and where the market was headed, we knew there was no way they could service that loan. What can we learn from these mistakes? 1️⃣ Test drive the car before you buy it. - Start small, learn the market, and scale up only when you're ready. 2️⃣ If you’re going to spend $40 million on a cultivation facility, hire the best growers in the world. - Talent and expertise are the keys to achieving a strong ROI. 3️⃣ Identify winners in the space and study their tendencies and operations. - Success leaves clues—follow them. 4️⃣ Debt will kill a company. - Build to your market's needs, not your greedy vision. Build to your needs. The cannabis market is brutal right now, with prices dropping drastically since 2020. Many more companies will meet the same fate before the end of 2025. 🏷️💨 To all those still in the game, I wish you the best of luck for the rest of this year and the future ahead. 🍀 What are your thoughts? 💬 Can these lessons save other companies from the same fate? How can new operators avoid the "shiny object syndrome" and focus on sustainable growth? Let’s discuss below! ⬇️ #CannabisIndustry #MichiganCannabis #IndustryLessons #BusinessStrategy #CannabisCommunity #MarketTrends #Sustainability #ShinyObjectSyndrome #CannabisCulture #Entrepreneurship

The best entrepreneurs are like cockroaches - they figure out a way to survive - esp as they're trying to get to PMF, pivoting this way & that... testing diff hypotheses.. Not sure if this analogy is gonna fly - but was talking to someone about cockroaches recently and it keeps popping back in my head. __________ ☀️ 💨 🔋 in sustainability - see the same thing happening in EVs, plant-based foods, etc. Gingko Bioworks having its 2nd major layoff and trading at $0.28 (down from $14 - yowza that looks like a cannabis stock!). 🍺 🍷 in alcohol, there's a clear shift away (esp among younger Gen Z) - and you see the BevAlc embracing Hemp THC - that's a cockroach move! 🖥️ 🤖 in tech, it seems like if you're not in AI, you need to be in cockroach mode. ___________ 🌱 In cannabis, right now, it's a game of survival - yeah Woodstock Products feels like turning the business around - but we're STILL not CF positive so no rest for the weary. We have to keep delivering to our partners, strategically expand to new partners ONLY when we can do it successfully (without disappointing our current ones), and think about what's next in the innovation pipeline / next in regional expansion. ____________ bc if you sit still, you'll get crushed. Ever see a cockroach sit still? But I do like that they're survivors... I feel like cockroaches need a re-brand too - like there needs to be a movie or a superhero who enters "cockroach mode" (ala what Ratatouille did for rats - though I'm still not a fan of rats) or what Jeff Goldblum did for flies. Picturing all of this with Gloria Gaynor as an overlay - who’s gonna take this and turn it into something?! Wish I knew how to modify the gif to “I will survive” #survivalmode

The cannabis industry is filled with solid marketing professionals with integrity. Authentic, genuine people with great morals. I have so much respect for all of you - who are doing things right without trying to deceive anyone Or lie to Google on behalf of their clients. If you are honest, you know that you don't need to use tricks or deceit to bring big results for your clients. Most results and "case studies" you see on LinkedIn are polished to impress but lack real, sustainable strategies & outcomes There are some who still follow old black market tactics - trying to trick the system at each turn - overlooking the long-term impact it may have on their clients, them, or the industry as a whole. We have been growing mildly recently, yet we remain the same bootstrapped startup, grounded in humble beginnings. Together, we can build an industry rooted in integrity and trust. #cannabismarketing #cannabisindustry

Huge thank you to Cannabis & Tech Today! I'm beyond excited to share my current story with you as this interesting article sums up my journey and the evolution of My Bud Vase . It beautifully captures how I’ve balanced creative vision with financial strategy to grow this brand into what it is today. 🎨📈 As someone passionate about creativity and innovation in the cannabis space, it’s amazing to reflect on the progress we’ve made, the challenges we’ve overcome, and the exciting path ahead. 💡 💬 If you're curious about: - The unique intersection of creativity and strategy in any professional setting - How we’re pioneering cannabis home decor through collectable art  - Or just looking for a bit of inspiration for your own ventures... 👉 Check out the article here: https://lnkd.in/gJGt2G67 Speaking of inspiration… are you attending the Las Vegas Investor Conference (https://lnkd.in/gcbh3Jzs) tomorrow and Thursday? 💬 Drop me a comment or DM if you’re going, I'd love to meet you there! Together let’s create what’s possible in this evolving industry. Sign up for my NEW CHANNEL on creativity & product development launching January 2025 http://doreensullivan.com 🚀 #CannabisInnovation #Entrepreneurship #MyBudVase #CreativeCommunity #LasVegas #Vegas #Investors #NewChannel #CreativityInMotion

The #Cannabisindustry is a wild ride—high hopes, low margins, and CFOs perpetually #exhausted from balancing both. I should know, I was a #CFO for two years with Grupo Flor in California. It was far tougher than I imagined, and I've been through several #emerging markets. The fastest-growing strain? The strain on your #finances. #CannabisCEOs are flocking to yoga, not for downward dogs, but to get away from their downward spirals. While most Cannabis #startups come with half-baked business plans, the harsh truth is growing profits in Cannabis— is even harder than #growing the plant itself. At Highly Capitalized Network-HCN, we cut through the noise—to deliver authentic, unfiltered Cannabis *business & finance* news. If you want to find out about Gelato strains, we're ''not the droids you're looking for.'' And we do not play the #PRgame because we're no phonies. PR folks have long since stopped calling us to #pump their stories on our #newsfeeds. We don't ''virtue signal'' like others do, because it's so freakin' #dishonest. Follow Highly Capitalized Network-HCN for honest news stories rooted in integrity. HCN stands apart, keeping you informed, entertained, and ahead of the game.  When our content is sponsored it says ''sponsored by'' etc. #Subscribe to our free newsletter at https://lnkd.in/gEC8F3QP because surviving this industry takes more than a good laugh. It takes the truth. #Cannabis

Did you know that the journey from culinary arts to cannabis entrepreneurship could be as rich and fulfilling as the perfect chocolate cake? Meet Matha Figaro, CEO of ButACake, who transitioned from creating culinary masterpieces to pioneering in cannabis edibles.

BRĒZ might be the single most intriguing startup in CPG right now. The South Florida based brand (pronounced 'breeze') makes social tonics microdosed with cannabis and mushrooms. THC, CBD, and Lion's mane are all in the mix. “Microdosed mushrooms in a can”. But the liquid is only part of the reason Brez is so fascinating. A few things that stand out: --- 1 / Extreme transparency Founder Aaron Nosbisch posts business results monthly to all social platforms. Revenue, growth metrics, conversation rates, CACs, AOVs, etc. Even net profit margin is posted publicly. Brez just completed its first full year of operations and business is booming. $5.4m in sales p12mo. Incredible. 2 / Unique business model The vast majority of Brez products are sold online. This is an anomaly in the beverage category due to the fact it's ridiculously expensive to ship water direct to consumer. Brez is well equipped to navigate this channel due to two key advantages: productive unit economics and strong performance marketing capabilities. 3 / Uncharted regulatory environment Brez is operating in a confusing legal landscape with contradictory messaging from multiple arms of the US government. The FDA actually investigated the brand earlier this year. Brez passed the compliance check with flying colors...and Aaron posted about the whole thing publicly. Phenomenal. --- I haven't tried the product yet so can't speak to it directly but have to say I LOVE what this team is doing. Few things people are thirstier for these days than transparency, and the Brez team is delivering in spades on that front. Well done Aaron Nosbisch Avin Kline Nick Shackelford #cpg #cannabis #mushrooms #brez #fda 

It’s been exciting to see all of the interesting recaps from this year’s Hall of Flowers , and as I sat down to write my own I realized that my friends here on LinkedIn perfectly captured my sentiments, leaving me with nothing new to say! So instead I would like to reflect on the state of the union, as it were, which was a topic that seemed to be on many minds. That’s one of the things that I love most about events like Hall of Flowers, is that it gives us a moment to step outside of our daily grind to connect with our community and feel its pulse.   I’ve attended every HoF since inception (minus the one I had COVID), and it’s incredible to see how much the market has evolved. From 2018 to 2020, we saw 1000s of licensed operators in CA, and the creation of 10,000s of unique products. Today, there are fewer than 850 active brands on retail shelves. I attribute this to 3 key factors, and would love to hear what other factors are on the top of your list. First, we are at the dawn of a newly regulated market. This “pioneer” phase will extend at least through 2024. It reminds me of my experience working in the mobile app boom from 2008 to 2012. Like the app market, the cannabis industry experienced an initial influx of new entrants, and over a several year period the market consolidated as consumers determined their preferences and loyalty. This consolidation and market contraction has led to many of the changes we’re witnessing today. Second, the cannabis industry operates within three distinct markets: the illicit, the grey/hemp, and the regulated market. These markets coexist but also compete with each other, creating challenges that hinder the growth of individual markets as well as the overall industry. Many operators that used to exist in the regulated market have moved or diversified to other markets. Third, the rapid growth witnessed in recent years was largely fueled by anticipation of federal legalization. Many entrepreneurs anticipated increased capital inflows, heightened M&A activity, and lucrative exit opportunities. However, these expectations remained unfulfilled, leaving numerous companies struggling for survival. Consequently, a "growth at any cost" mentality emerged, leading to aggressive price competition and compression. These factors have led to a heavily skewed marketplace where large value brands dominate, causing the obliteration of many mid to long-tail brands, including small farms and legacy producers. These challenges stem from a nascent, poorly regulated and manipulated market under federal prohibition. The good news is that a regulatory inflection point is inevitably on the horizon, and I’m confident that in this next phase we will see the cannabis market regain equilibrium and foster a more diverse retail shelf. It will also spur the revival of brands and producers that exemplify our cannabis heritage and culture. That is my hope at any rate—I’d love to hear your thoughts! #cannabis #cannabisindustry #california

🌿💰 Join the Green Rush: Selling Legal Weed and Reaping the Rewards! 💰🌿 Are you ready to step into the fast-paced world of legal cannabis and seize your slice of the green pie? It's time to harness the power of the green rush and turn your passion for weed into a profitable business venture! 🚀🌿 With the legalization of cannabis sweeping across various states and countries, the demand for high-quality products has never been higher – and the opportunities for entrepreneurs are endless. Here's why selling legal weed could be the career move you've been waiting for: 📈 Booming Industry: The legal cannabis industry is experiencing explosive growth, with market projections reaching billions of dollars in the coming years. Whether you're interested in retail, cultivation, manufacturing, or distribution, there's a niche waiting to be filled – and plenty of profits to be made. 🌱 Diverse Product Offerings: From premium flower and potent concentrates to delicious edibles and therapeutic topicals, the world of legal weed offers a diverse array of products to suit every taste and preference. Whether you're catering to recreational users or medical patients, there's something for everyone in the cannabis market. 🚪 Accessible Entry Points: Contrary to popular belief, you don't need deep pockets or insider connections to enter the cannabis industry. With the right strategy and resources, anyone can start a successful cannabis business – whether it's a small-scale boutique dispensary or a vertically integrated cannabis empire. 💼 Community Impact: Beyond the potential for financial success, selling legal weed also offers the opportunity to make a positive impact on your community. By providing safe, regulated access to cannabis products, you're helping to reduce stigma, promote education, and support responsible consumption practices. But perhaps the most rewarding aspect of selling legal weed is the opportunity to be part of a movement that's changing lives and shaping the future of cannabis. Whether you're a seasoned entrepreneur or a budding enthusiast, there's never been a better time to join the green revolution and make your mark on the industry. 🌿💼💰 Ready to turn your passion for weed into a profitable business venture? The green rush is calling – will you answer? 🌿🚀 #GreenRush #LegalWeed #CannabisEntrepreneur [Tag a friend who's passionate about cannabis and entrepreneurship!] 💬🌱