Cultivation Goes Corporate: What It Takes To Survive As A Public Cannabis Company In 2021

By Roger Bloss CEO of MJ Holdings MJNE

As a result of the Green Rush, much like the Gold Rush of the 1800s, many newcomers are trying to get rich and make it big in the industry. Many cultivators have been very successful in the underground trade for years. However, now that cannabis is legal and government-regulated, these cultivators often lack the knowledge to comply appropriately with federal and state laws.

This is a major reason why today’s cultivators fail.

You can have an abundance of capital and investors, a great location with a superb growing facility, and a phenomenal workforce, but if compliance and regulation are not a cornerstone of your business plan, you will struggle to succeed.

Now is a phenomenal time to be involved in the cannabis industry. We’re literally building a brand new, legal industry from the ground up. Success and profits have the potential to be huge, but since we’re such a new and emerging industry, we’re all going to make mistakes along the way. The only real mistake, though, is the one we learn nothing from.

At MJ Holdings, we’ve had setbacks and missteps, despite an abundance of capital funding. However, we knew if we were to succeed, we needed new leadership; I was appointed CEO in September 2020 to reorganize and restructure the organization.

My business experience as founder and CEO of a top 10 global hotel company paired perfectly with MJ Holdings founder Paris Balaouras’ tremendous knowledge of growing. We each have our strengths, and in a very short amount of time, we’ve worked together to bring the organization to its healthiest, wealthiest state to date.

The greatest thing about the cannabis industry is you learn something new every day. I’ve been incredibly fortunate to learn from the best. However, when someone asks me what it takes to be a successful public cannabis company, I tell them to focus on the four lessons I’ve learned.

Takeaway #1: Ensure you’re in compliance with federal, local, and state regulations.

There’s no question about it: you must take regulations very seriously. The state cannabis regulatory agency has tremendous power in whether your business will even open its doors.

Many cultivators enter the industry undercapitalized not realizing just how many regulations must be followed. Plus, compliance is a constant process. Though it’s best to start assessing and auditing for compliance in the beginning, it’s an ongoing monitoring practice, given how frequently regulations change.

There are cannabis compliance consultants and even unique software services out there to help you follow the state-specific regulations. If you’re planning to launch a cannabis business, it’s best to be proactive about compliance right away. If you’re already running a cannabis business, it’s not too late to get your ducks in a row. Waiting to get in compliance, however, can cost you your entire business. On top of fines, regulatory agencies have the power to temporarily or shut down your operations.

Takeaway #2: Stay focused on the ground operations rather than the value of your stocks.

It’s easy to get overwhelmed thinking about how your business will be perceived and valued. Oftentimes, we’ve found that focusing on the outcome can take away from the journey. When growing cannabis outdoors, such as we do, we must ensure that our ground operations are the focus of every minute of every day.

As a public company coming from a private enterprise background, we’ve learned to stop stressing over the stock price of our organization. Instead, we focus on the core value of the business because we know that as we continue to succeed, the stock prices and investor funding will increase. As I always say, “luck follows when you do right.”

Demonstrating leadership to your direct team will have the most impact on your product and service development, which is likely to be the best and highest return on your investment.

Takeaway #3: Know your personal values and act on them in your professional life.

Cannabis consumers are looking for brands that resonate with their own philosophies. They’re looking for brands with appealing and attractive values.

That’s why it’s vital to get in touch with your own personal values and incorporate them into your organization. Oftentimes, organizational values make a company unique and can lift you above your competition.

Likewise, your product must follow your personal values. If you and your business value quality over quantity, your products must also reflect this and be of superior quality.

Cannabis consumers will be the first to know if your product truly lives up to your organizational values and they will publicly share their opinions with others, positive and negative.

Takeaway #4: Know what the market needs and assess future demands.

It’s critical to stay on top of the market and know what customers will need in the future. This is a crucial business tactic, no matter what industry you’re in. Make sure to follow the latest industry news and trends as well as network with other cannabis leaders and ask for their insight.

When it comes to our industry, we make an active effort to study and analyze the market, especially in our local region. For example, by constantly studying the Nevada cannabis market, we’ve recognized the growing need for medical-grade facilities, and we’ve adapted our business model to meet this demand.

While these four lessons aren’t all the lessons I’ve learned, they’re fundamental for any emerging cannabis business. Get compliant, stay grounded, follow your values, and study the market. If your organization is struggling, don’t look at it as a setback, but as an opportunity to set up for a better future.

Roger Bloss joined the company's board of directors in late 2019 assuming the role of Interim CEO, and President of the Alternative Hospitality Division.  Now as acting CEO of MJ Holdings, Roger brings over 40 years of experience in the hospitality industry including the founding of Vantage Hospitality Group in 1996 and holding several executive positions with major hotel franchise companies. 
His expertise in hospitality, entertainment, and health and wellness serve as an asset to MJ Holding's goals of expanding the cannabis entertainment industry across the nation.