What I Got Wrong About Cannabis Retail (and How We’re Fixing It)

• Several traditional finance assumptions do not translate to cannabis retail
• Operations and compliance shape financial outcomes more than models
• Early misjudgments are common for first-time operators
• Adjusting systems, not projections, is the path forward

Coming from traditional finance, I entered cannabis retail with a set of assumptions that felt reasonable at the time. Financial models, margin targets, and growth projections were familiar tools. What became clear quickly is that cannabis retail does not reward clean spreadsheets in the same way. The business behaves differently because the constraints are different.

One early mistake was assuming that strong financial modeling could compensate for operational friction. In practice, no model survives contact with compliance requirements, staffing realities, or inspection-driven delays. Financial projections are only as reliable as the systems executing them. This realization forced a shift away from model optimization toward operational discipline.

Cannabis retail operations are more complex than they appear from the outside. Staffing decisions, throughput design, inventory handling, and compliance procedures all interact. Small inefficiencies compound quickly when margins are tight and cash access is limited. This complexity was easy to underestimate before operating inside it.

Another early misjudgment was viewing compliance as a fixed requirement. In reality, compliance evolves with regulation changes, inspection feedback, and operational adjustments. Training, documentation, and reporting require ongoing attention. Treating compliance as a living system rather than a checklist changed how we allocate resources.

The response was not to abandon financial rigor, but to reposition it. At ShowGrow, financial planning now follows operational reality rather than leading it. Construction decisions, staffing models, and compliance systems are designed first. Financial expectations are then built around what those systems can reliably support.

For partners and new license holders, these lessons matter. Sustainable success comes from building systems that survive real-world conditions. Conservative assumptions, operational discipline, and continuous adjustment outperform aggressive projections. This mindset shapes how ShowGrow approaches partnerships and growth.