3 Hard Truths About Cash Flow in the Cannabis Industry

It’s easy to get excited about the cannabis industry when you hear that legal cannabis sales in the U.S. grew 30 percent in 2020 to a whopping $22 billion, outpacing the $17.5 billion spent on wine. If you’re a savvy, experienced businessperson, you might mistake that kind of booming market with an opportunity to turn a quick profit.

But there are a few aspects of operating a business in the cannabis industry that are dramatically different from running a typical business. Here are three hard truths about cash flow that people need to understand before even considering launching a cannabis business.

Hard Truth 1: You Need Considerable Liquid Funds to Start and Operate a Cannabis Business