Bract & Pistil

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Profitability Challenges:

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• High regulatory costs, including significant taxation unique to cannabis companies.

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• Oversight and legal risks add to operational complexity and expenses.

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• Applications, attorneys, licenses, consulting teams, product testing, traceability systems, and extensive security requirements are costly and more rigorous than for most other industries.

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• Cannabis businesses face restrictions on tax write-offs and limited access to banking services due to federal illegality.

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State-Specific Issues:

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• In New Jersey and Connecticut, many issued licenses are inactive due to a lack of financing.

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• Active businesses in these states benefit from limited competition and perform well.

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Dynamic Legal and Compliance Needs:

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• Constantly evolving regulations necessitate a strategic legal and compliance team to ensure ongoing adherence.

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Marketing Considerations:

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• It’s crucial to allocate a substantial budget for marketing.

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• Understanding the appropriate marketing budget is essential for effective outreach and brand positioning.

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Strategic Planning:

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• Developing clear strategies and goals is vital for business success.

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• Aligning with clients who share your values is important for sustainable growth.

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Debunked: The cannabis industry is a gold mine.

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Bract and Pistil – a small