Marijuana Business Magazine - Issue 09, Oct 2017

TRENDS AND HOT TOP¬CS A s a for-profit endeavor, Women Grow expanded incred- ibly quickly during its first 18 months in existence, growing from a Colorado startup in 2014 to a network of 44 chapters across North America. But things went south over the next year and a half. Flaws in the company’s business model surfaced, and Women Grow – created to empower female marijuana professionals through 5 Lessons Learned From Women Grow’s Stumbles Company’s troubles offer a valuable case study for cannabis entrepreneurs by John Schroyer networking, mentoring and business support – began to struggle. Ultimately, many of the problems the company encountered can be traced back to its origins as well as a general lack of planning and several mis- steps that cost Women Grow goodwill throughout the cannabis industry. Those same issues could affect its abil- ity to survive in the long term. Following are five business lessons learned from Women Grow’s dif- ficulties – information that cannabis entrepreneurs can use when launch- ing or growing their own ventures. 1. Don’t Overreach Perhaps the first mistake made by Women Grow was its willingness to open chapters in nearly every city where it found an enthusiastic sup- porter of the company’s vision. By founder Jane West’s account, multiple women across the country had contacted her by August 2014, when the inaugural Women Grow meeting was held in Denver. Those contacts followed a TV report the previous month that had looked at West’s plans for a company. West thinks things have ultimately worked out and that Women Grow learned a lot through trial and error along the way. But there’s no denying EXECUTIVE SUMMARY As a for-profit venture, Women Grow expanded quickly initially but then began to struggle. The company’s experience offers five business lessons: • Don’t overreach – other companies looking to aggressively expand should be careful not to let their exuberance override careful planning. • Have a business plan from the outset so you know how your company will create a revenue stream and grow it over time. • Make it clear whether you’re a for-profit or a nonprofit, especially if your company is mission-driven – otherwise, you’ll risk alienating those in your company who have a mistaken understanding. • Build morale and a sense of company to retain good personnel and develop a reputation as a good place to work. • Make sure your business partners know exactly where they stand with you, communicate with them and be clear about your expectations and limitations. Women Grow founder Jane West admits her company made some mistakes as it dealt with rapid growth. Photo courtesy of JaneWest.com 32 • Marijuana Business Magazine • October 2017