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Interlude- “The Compleat Herbalist-5” Herbie and his Friends Visit Everglades National Park

Blunt Business Cannabis Education Herbie National Parks Strategy

Interlude- “The Compleat Herbalist-5” Herbie and his Friends Visit Everglades National Park

“OK, let’s wrap this up”, says Monk. “Shoot”.  “Shoot”.  “Woof”. “The first area the consultant reviewed was industry growth rate.  Growth is good, as in “a rising tide lifts all boats”.  Each of our sectors are growing rapidly, which is good for potential profitability.  The one ‘caution’ our consultant mentioned was to look at ‘true’ growth, not what he called ‘apparent growth’.  Meaning, are more people smoking more weed?  That is true growth.  What he called ‘apparent growth’ is when people assume there is growth just people are opening dispensaries at a rapid clip.  If the true growth isn’t there,...

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Interlude- “The Compleat Herbalist” 4- Herbie and his Friends Visit Great Smoky Mountains National Park

Business Cannabis Herbie National Parks Strategy

Interlude- “The Compleat Herbalist” 4-  Herbie and his Friends Visit Great Smoky Mountains National Park

“OK, let’s continue”, says Monk.  “First, our consultant looked at the level of concentration of the competitors in our sector.  For growers, it is high.  Labs too.  That’s good.  In our market, a few growers have over 90% market share.  That is probably good for market stability-discipline and things like lobbying the government- coordinated action and such. For labs, a few labs have over 80% market share.  That is probably good for the same reasons as for growers. But for dispensaries, most competitors are other small dispensaries, with only a few owned by conglomerates.  There are price wars, turf wars,...

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Skill Building: Herbie Goes to See His Mentor, 5c

Business Cannabis Education Herbie Strategy

Skill Building: Herbie Goes to See His Mentor, 5c

  “Almost there, Herbie.  Just a few more.  Let’s wrap this up.  Start with Growth Rate. In general, if the industry is growing, there is room for everyone to prosper.  But be careful- what is meant by ‘growing’ is true demand, not the number of people chasing profits.  Are more people consuming  more weed?  This includes the shift from black market to legal.  It’s hard to ever really know, but the point is, do not assume demand is growing because lots of dispensaries open.  They might be fighting over a slow-growing pie. And if the growth rate of supply exceeds...

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Skill Building: Herbie Goes to See His Mentor, 5b

Business Cannabis Education Herbie Strategy

Skill Building: Herbie Goes to See His Mentor, 5b

“OK, keep going, what’s this business about ‘concentration’?” asks Herbie. “’Concentration doesn’t just mean ‘big’, says the Mentor.  ”It means ‘what percentage of the market is controlled by the 3 or 5 largest players’?. “What’s the difference?” asks Herbie. “OK, think about convenience restaurants.  There are billion dollar companies, like McDonald’s and Starbucks.  And there are also thousands and thousands of small diners and sandwich shops and pizzerias.  The point is, McDonalds, Starbucks and KFC do not have a dominant share of the convenience restaurant market, even though they are each billion dollar companies.  So I would not say the...

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Skill Building: Herbie Goes to See His Mentor, 5a

Business Cannabis Education Herbie Strategy

Skill Building: Herbie Goes to See His Mentor, 5a

“So I promised you some high level questions”, says the Mentor. “This does not mean ‘cursory’.  These questions need to be addressed in some detail, and the data is not just sitting there”. “Ask your consultant these questions.  Be ready to pay.  These are not easy questions or things you can just look up”. "Oh-oh", says Herbie.  "Quiet", says the Mentor. Being towards the right-hand side of each bar is good.  It means, all things being equal, that the profit potential of the industry is good. Let’s get started. Barriers to entry: In general, high barriers are good for profit...

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