Thriving in Cannabis Chaos: Lessons From Other Industries

Cannabtimes

<![CDATA[In Nassim Nicholas Taleb’s fantastic book titled Antifragile: Things That Gain from Disorder, he explains the concept of gains made through volatility (negative events). For example, he describes airplane crashes as making the airline industry stronger. Each crash is studied (via its fragility) and lessons are learned and incorporated into the industry as a whole. These lessons have led to dramatic drops in airplane crashes (antifragile) over the past 50 years. Taleb also addresses the economy head-on by showing that our political leaders consistently make decisions to smooth out every bump in the economic road, creating complacency with risk taking that allows fragility to build up in the system (think the 2008-2009 financial crash). Complacency and 100% stability can be a killer.  How can we apply this antifragile concept to cannabis given that the cannabis industry is hyper-volatile? The intention is to create a situation where the very nature of the fragility within the cannabis industry can benefit your firm when big, negative events occur. Looking to other industries can give us valuable insights into how companies can benefit from negative events.Here are some negative events that can affect your cannabis business:The price of cannabis flower crashes due to overproduction.The regulatory scheme in a particular state becomes more rigorous and/or expensive.A product category crisis. (The vape crisis is a good example.) An economic crisis that results in the drying up of investment capital.A key counter-party or relationship goes kaput.  For example, the wholesaler you’ve been relying on is suddenly out of business as a result of financial mismanagement, poor execution or, as recently happened to some farms in Oregon, a fire burning your business to the ground.These examples are enough to illustrate the potential for negative events and to use in setting up a framework to thrive from the resulting chaos.…

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Source : Thriving in Cannabis Chaos: Lessons From Other Industries

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