CannaCFO Magazine Issue 1 | Page 70

When we look at our delivery company clients, we definitely have seen a theme of challenges all of them face. While each of delivery company clients have enjoyed extensive growth over the past year, these challenges can be overwhelming at times which include the following:

•Understanding the Marketplace

•Daily Operations

•Supply Chain issues

•Outrageous Taxes

•Under-funding Understanding

Understanding the Marketplace

Each marketplace is very different. Take the Emerald Triangle which is the region in Northern California consisting of Humboldt, Trinity and Mendocino Counties. These counties are very rural in nature, have thousands of rolling acres of hillside and has a fantastic climate to produce outdoor cultivation crops that are absolutely amazing. The Emerald Triangle boasts some of the highest quality cannabis and has become the largest cannabis producing region in the United States. Everybody up in the Emerald Triangle absolutely is obsessed with traditional outdoor production.

On the other hand, if you are well south of the Emerald Triangle, you can buy outdoor grown cannabis flower extremely inexpensively as compared to light deprivation and/orindoor flower. Light deprivation and indoor benefits are substantial as the number of grows and production can yield 4-5times the amount of outdoor grow, quality of the flower usually far exceeds outdoor crops, you can control your environment and are not subject to environmental changes and problems and if problems exist with a grow, you haven’t put all of your eggs intoone basket for a once or twice-yearly outdoor yield.

Daily Operations

Where do we even begin? Cannabis delivery companies are extremely complicated and very expensive. Similar to store-front companies, delivery companies must have a central location, be built out to the specifications of the operating business, rely on an extremely unstable workforce where companies are lucky to have dedicated employees who enjoy their jobs and last more than a year of service. The human resources management portion of these companies is extraordinarily painful, especially operating a business in the State of California where specific rules, regulations and laws all seem to favor the Employee.