As more adult-use states come online, the more we see an expansion in the infrastructure necessary for federal legalization. The increasing speed at which this groundwork is being developed has sparked a sense of urgency.
Urgency, by definition, refers to “a psychological trigger that is deeply rooted inside our brain: it relates to the human loss aversion or the so-called Fear-of missing-Out (FOMO). Scientifically speaking, urgency is a time-based concept that prompts us to act quickly.”2 As key states quickly dole out their finite number of licenses, urgency becomes less about the fear associated with missing out and more about the actuality of it.
Businesses are battling to capitalize on the unique, singular opportunities offered by friendly municipalities in key battleground states, and those that miss out on the action may face repercussions from their lack of proactivity. Jon Sandelman, CEO of AYR Wellness, explained it best as he discussed AYR’s acquisition of Liberty Health on Rena Sherbill’s podcast, The Cannabis Investing Podcast: “The reason why I felt I had to move on Liberty at the time I moved on Liberty is because I thought there was a land grab that was going to end. I feared if I didn’t move now for our shareholders, that we’d be locked out of most municipalities, because right now, I just can’t see certain municipalities having 10 cannabis stores in their towns, and if I waited, I would be locked out.
Speed to Move in Cannabis
While the previously outlined scenario is a prime example of FOMO, a sense of urgency can also be sparked by the desire to protect yourself from outside threats. When we describe the large MSOs, we’re really just talking about big fish in a small pond. As regulations change and the pond becomes an ocean, the environment will completely change.
Bruce Eckfeldt, host of podcast Thinking Outside the Bud, echoed these sentiments in Eighth Revolution’s podcast, The Dime. “You’ve got the really small fish and these medium fish, which are the large fish right now, but the megalodons still haven’t come into the waters yet. And when the laws change and federal stance changes, you’re going to see big shifts in the market. That said, it’s going to be a going to be a dynamic, growing market, and there’s still going to be lots of opportunities. If you can find a niche strategy, you can create a very nice business out of it,” said Eckfeldt.
The best way to leverage urgency to your advantage is by understanding the finer details of the industry as a whole. Understanding your exposure to risk, working to fortify current approaches, and recognizing future areas of growth are crucial to preparing yourself for future changes.