The article discusses the macroeconomic conditions currently affecting Colorado’s cannabis businesses and offers steps those companies can take to adjust today and position themselves for success in the future.
Kevin suggests 3 immediate actions to consider:
- Take stock of your financial position, evaluating the impact of a prolonged slowdown on revenue, cash flow, and profitability.
- Revisit financial forecasting, factoring in worst-case scenarios and other potential challenges.
- Make tough decisions to reduce or eliminate non-essential or discretionary expenses.
While these steps are short-term strategies, making decisions that will have a long-term impact is vital to help cannabis companies succeed in a smaller and more concentrated market. Kevin suggests companies:
- Strengthen governance and controls to give your company a competitive advantage in the future.
- Reevaluate investment decisions, postponing or scaling back projects not critical to current operations or strategic goals.
- Begin planning for an exit strategy if the pathway to survival looks insurmountable.
Colorado’s cannabis businesses are navigating uncharted territory. The evolving landscape holds both challenges and opportunities, and those who respond with agility, insight, and a commitment to adaptability stand a better chance of navigating the shifting currents to become a key piece of the state’s future cannabis industry. Contact Centri’s cannabis experts to learn how we can help your business thrive.
Kevin McLaughlin, CPA
Managing Director | Cannabis Practice Leader
Kevin is a Managing Director and the Cannabis Practice Leader at Centri. He has over 10 years of public accounting and consulting experience. Kevin supports clients in several industries, focusing primarily in cannabis, life sciences, technology, software, and mining. Kevin specializes in supporting clients with documenting the accounting treatment of various transactions, including complex debt and equity analysis, acquisition accounting process integration, and due diligence. He also performs IPO and M&A readiness services and supports clients with their financial reporting requirements, preparing periodic filings with the Securities and Exchange Commission (“SEC”) including S-1, S-4, 8-K, Proxy, 10-Q, 10-K, and Form 10 filings.
About Centri Business Consulting, LLC
Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reporting, internal controls, technical accounting research, valuation, mergers & acquisitions, and tax, CFO, and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.
For more information, please visit www.CentriConsulting.com
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