The medical and recreational marijuana industry is the fastest evolving industry and owners are faced with having to deal with change on a regular basis. Although cannabis businesses are reaping the benefits of this booming industry, rapid growth poses a threat. Seasoned entrepreneurs know that fast success can often cause more harm to a business than so-called “failure.” Why is this?
Fast industry growth and success brings a tremendous amount of change and shifting dynamics along with it. Cannabis business owners have to navigate the tempestuous waters of day-to-day operations (and multiple operations for some), changing laws, new environmental stipulations, unclear local regulations, etc., and because the industry is moving forward, it speeds all of this up. That’s a lot of change to deal with! As Murphy’s Law would have it, things go haywire at the worst of times. Equipment failure, HVAC unit failure, product spoilage, employee injury, lawsuits and the list goes on. In recent news many cannabis farms have struggled to recover from major losses due to fire and current drought conditions make these matters even worse. These are realities that business owners inevitably face, and the businesses that can adapt to these circumstances will outlast those who cannot. Are you in a position to adapt?
Many cannabis growers, producers and retailers are transitioning from small “backyard” operations to full-fledged businesses consisting of multiple enterprises. As the industry continues to grow, most are beginning to recognize the importance of putting protections in place to withstand the demands of business to run longstanding, successful businesses. Cannabis insurance is the best investment you can make to stay in for the long-haul.