MJBIZ - November/December - 12

FROM THE EDITOR Omar Sacirbey
Making Money the Old-Fashioned Way
Despite challenges, profitability is still possible in cannabis
I
t once seemed that almost
anyone could make money in
cannabis.
During the COVID-19 pandemic,
marijuana companies
were among a small number of
" essential " businesses allowed to
stay open. Meanwhile, consumers
suddenly had extra time and
stimulus money to spend.
Pre-pandemic, most states
with regulated medical and
recreational marijuana were
limited-license or developing
markets, so the licensed MJ
businesses that existed had
modest competition and a
growing consumer base. As new
markets opened every year, the
opportunities only grew.
Even inefficient businesses
were able to raise capital, thanks
to inexperienced investors eager
to join the " green rush. "
Changing Landscape
Of course, any marijuana
operator can tell you that the
days of easy money are over.
Competition exists as never
before, investors no longer shoot
first and ask questions later, and
the regulations and taxes that
burden cannabis businesses inequitably
are mostly still in place.
Nevertheless, being profitable
in cannabis is still possible.
Consider the marijuana brands
profiled in this issue's cover
story, starting on page 40. The
businesses create different
products, operate in various
parts of the country and are
different sizes. Some are led
by executives with traditional
business backgrounds, while
others developed in the legacy
market.
Yet they are all profitable.
Getting there, however, is a lot
harder than it was a few years
ago: Only 27.3% of marijuana
businesses are profitable, while
32.2% are in the red, according
to a recent survey by economist
Beau Whitney. So, how did the
four businesses in our issue do it?
Becoming Profitable
Anyone who watched television
in the late 1970s and early 1980s
likely remembers TV commercials
featuring actor John Houseman
speaking on behalf of investment
house Smith Barney. " They
make money the old-fashioned
way. They earn it, " Houseman
says with a stern British accent,
emphasizing " earn. "
The same could be said of
the four marijuana businesses
profiled in this issue of
MJBizMagazine. Each faced
different challenges and took
different paths to profitability,
but the operators all had to
make difficult decisions about
how to run their companies. And
they always kept their audience
front and center.
At MJBizDaily and
MJBizMagazine, we keep our
audience front and center, too.
We know how hard success can
be to achieve. That's why our
reporters bring the marijuana
business community the most
important and useful industry
news to take your business to
the next level.
12 November-December 2024 | MJBizMagazine
In this issue, for example,
executives take readers deep
inside the challenges they faced
and share the detailed strategies
and decisions that helped them
conquer those challenges.
This issue also includes a Q&A
with a marijuana testing lab
operator whose courage to speak
out will boost industry integrity,
and a Viewpoint column about
the 2025 economic outlook that
will help executives prepare for
the coming year.
All Eyes on MJBizCon
This issue coincides with
MJBizCon, so we've included a
Show Guide starting on page
63 to help attendees better
navigate the most expansive
trade show floor in the cannabis
industry. There, you'll find
industry executives from all over
the world seeking to strike deals,
acquire knowledge from dozens
of expert panels and network
with thousands of marijuana
business professionals.
As we close out this year with
what will no doubt be a historic
MJBizCon, we are already
looking forward to serving our
readers in 2025.
For many businesses, profitability
is closer than previously
assumed. MJBizMagazine looks
forward to helping them break
through.
Omar Sacirbey is the
editor of MJBizMagazine.
Reach him at omar.
sacirbey@mjbizdaily.com.
MJBIZ - November/December

Table of Contents for the Digital Edition of MJBIZ - November/December
