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Herbie buys a dog

Blunt Cannabis Herbie

Herbie buys a dog

Dizzy from concentrate, and from concentrating on the level of concentration in the concentrate sector, Herbie decides it’s time to get a dog.  So he goes to the shelter. For Herbie, it was an emotional experience.  As soon as he walked in, a small, pathetic looking puppy of indeterminate lineage started yapping and wagging its tail.  When Herbie walked over, the dog went crazy.  The attendant suggested Herbie hold him and that was it.  Licking, wiggling, squirming. When Herbie asked about the breed, the attendant looked down and away, so Herbie let it go.  Apparently the dog was abandoned, but...

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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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Skill Building: Herbie Goes to See His Mentor, part 4

Business Cannabis Herbie Strategy

Skill Building: Herbie Goes to See His Mentor, part 4

“Now Herbie, you can’t just run off like that when things get overwhelming” chides the Mentor.  “If that’s what you plan to do, ditch the Vans and get some Nikes”. “Sorry” says a chastened Herbie. “I’m ready now”. “Industry Sectors” intones the Mentor.  “Tell me, who makes more money, a grower or a dispensary?  A testing lab or a warehouse?  Don’t answer, but that is what I mean by “sectors”.  All of those businesses are in the “cannabis industry”, yet they may face very different landscapes- the hills in my earlier examples.  Which part of the industry do you want...

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