At the recent Benzinga Cannabis Capital Conference, cultivation experts shared key strategies for building a profitable commercial cannabis cultivation operation.

Moderated by Amy Larson, senior vice president at Rx Green Technologies, the panel offered key insights on essential strategies for creating resilient and profitable cannabis cultivation operations. Leaders from facilities design, finance, lighting and agricultural services discussed the critical factors for staying competitive in an evolving market.

Check out these five must-know strategies the panel shared:

1. Setting Realistic Goals

Successful cultivation operations require attention to many business components, including cultivation processes, financing and regulatory adherence.

Larson opened the session with foundational advice for aspiring commercial cultivators: start with realistic expectations. "Be realistic with your plan, and your goal in the industry, and immerse yourself."

Larson, who is also head of sales and marketing, emphasized that networking and identifying "who you know and who you trust" remain vital in cannabis, a still-tight-knit industry. She also pointed out that successful cultivation operations require attention to various business components, from financing to regulatory adherence.

2. Starting Small, Scaling Wisely

For David Fettner, managing partner of Grow America, sustainable growth begins with restraint.

Fettner explained that many new cultivators feel pressured to maximize their output from the start, but a controlled growth strategy ultimately allows for more stable, long-term success.

"Being realistic is key: how much cannabis can you grow? Just because you have a license to do a lot doesn't mean you should," said Fettner.

Based in Chicago, Grow America advocates for gradual growth, encouraging operators to start small and expand as demand rises. This "Grow Smart, Not Fast" approach was a repeated theme throughout the event.

"You can always expand if the market is in that place," Fettner noted. But if you go too big too soon, "you can go down really quick."

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3. Integrating Into Cannabis Culture and Industry Knowledge

Darren Lampert, CEO and co-founder of GrowGeneration Corp GRWG, highlighted that successful cultivation requires an in-depth understanding of the industry and a commitment to the culture.

"Try to understand the industry," he advised, suggesting events such as the Benzinga Cannabis Capital Conference are crucial for networking and education. Lampert emphasized, "It's not like the old days; the industry is maturing, and you are going up against groups that are well-capitalized."

He recommended that new operators focus on developing a solid business plan and fully immerse themselves in the cannabis culture as a pathway to success.

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4. Learning From Others, Taking A Gradual Approach

In the realm of cannabis financing, Eric Kaufmann, COO of FundCanna, also offered essential advice: "You don't have to do it all at once, so don't."

As one of the largest debt providers to the cannabis industry, FundCanna supports cultivators with instant approval lending tools that ease financial burdens. Kaufmann advised operators to "check your ego at the door" and approach the market with humility, learning from experienced players. He noted that maintaining financial stability is essential to secure funding and survive market shifts.

"It's hard out there; you need a business plan and must show the capacity to execute" to attract investors and establish a viable cultivation business. "Your relationships matter," Kaufmann pointed out.

5. Understanding And Optimizing Your Facility

With over 13 years of experience in commercial cannabis, Jason Nelson, CEO of Avail Ag, stressed the importance of facility optimization.

"You are going to have experts who are good at growing plants, good at extracting, good at packaging," he explained, noting that facility-specific knowledge is critical for operational success. Nelson encouraged cultivators to prioritize spending based on their facility's unique needs, as a one-size-fits-all approach is rarely effective.

"It's all in the details," he emphasized, pointing out that even minor adjustments can significantly improve efficiency and yield.

Read Next:
• ‘Grow Smart, Not Fast’: Top Advice For The Cannabis Industry From Benzinga’s Capital Conference

Photo: Wendy Davis for Benzinga