rewrite this title and make it good for SEOStarting a Cannabis Company in 2025: Lessons from a COO

(This is a contributed guest column. To be considered as an MJBizDaily guest columnist, please submit your request here.)

This summer marked 11 years since I stood in line outside Main Street Marijuana in downtown Vancouver, Washington, on the very first day of legal sales. 

I was new to the cannabis world then — very new. I had just joined a startup called Viridian Sciences as an implementation consultant, working to bring ERP systems into an industry that was still figuring itself out. 

There were no real standardized processes, no widely accepted best practices. Just a thick book of compliance rules that needed to be integrated into, at best, previously loose systems — and for many of the new licensees caught up in Washington’s green rush, completely new processes built from scratch. 

That first summer, our office was just a block down from Main Street. I remember the street fair in the parking lot, the buzz in the air, news crews swarming. People cheering as the doors opened. It was electric. 

Fast-forward over a decade, and I’ve now worked with hundreds of cannabis licensees across every vertical and region. I’ve seen brands rise and fall, systems built and rebuilt, markets mature and markets stall. 

Today, I’m the COO of Cultivera, and my world revolves around the operational infrastructure of this industry. I’ve seen a lot of transitions, changes, and disasters, and I’ve learned a lot about what it takes to succeed. 

So, with 11 years of experience behind me, if I were starting a cannabis company from scratch in 2025, here’s what I’d be thinking about:

1. Can you actually reach the end consumer?

Branding is important, but a good logo and a mission statement won’t build loyalty by themselves. In cannabis, access to the customer is limited. If you don’t own retail or have strong relationships with your buyers, you may not have the leverage you think you do. Events, social engagement, and partnerships can help, but only if you’re intentional. Don’t just build a brand — build a channel.

2. Don’t overbuild your tech stack

New operators often waste money and time buying too many tools too fast. You don’t need a shiny dashboard for everything. You need tools that support compliance, enable transactions, and help you build strong vendor relationships. That’s it. The rest is overhead until proven otherwise. Integration debt and system sprawl can bury a team before their product ever hits shelves.

3. Operational consistency is the baseline

You can have the best flower or edibles in the world, but if your batches are mislabeled, your deliveries are late, or your manifests are sloppy, you won’t last. Retailers have too many choices and too little time. They want smooth, reliable vendors. Your ability to execute consistently is part of your brand now. 

Bonus thought for Illinois operators: If you’re in Illinois, you’re currently facing a major operational transition as the state recently moved from Biotrack to Metrc. We’ve guided operators through several of these traceability system migrations before, but none were quite like Oklahoma. 

In Oklahoma, we helped over 500 groups migrate onto Metrc… then back off it when the program paused… and then back on again when it relaunched. It was chaos. And it exposed a hard truth: Your workflows, inventory controls, and training protocols will get pressure tested in moments like these. 

This isn’t just a software change — it’s a business stress test. If your operation isn’t already built on consistency and adaptability, now is the time to get it there — before the Metrc switch exposes the cracks.

4. You don’t have to do it all

Focus matters. You don’t need to grow, extract, package, sell, and distribute everything in-house. In fact, most companies are better off specializing. What are you and your team great at? Lean into that. Then ask: What could we partner or outsource to increase efficiency and reduce complexity? You’ll grow faster — and break fewer things — if you stop trying to win every lane.

5. Be honest about your margins

Chasing top-dollar pricing doesn’t always lead to profitability. Maybe your sweet spot is wholesale. Maybe you build for volume instead of boutique margins. Maybe you white label. Be open to less glamorous paths if they lead to healthier cash flow and lower risk. Sometimes stability is a smarter play than prestige.

6. Prepare for the glut

Every state hits it: the crash after the rush. Supply outpaces demand. Prices drop. The market tightens. If you haven’t planned for it, you’re in trouble. How flexible is your cost structure? Do you have contingency plans? Can your business survive when revenue takes a hit? The companies that last are the ones that build for volatility.

7. Know your niche, and go deep

In today’s cannabis landscape, the winners aren’t generalists — they’re specialists. The most successful companies are the ones that own a lane and deliver, again and again. Be the easiest brand to work with. The most consistent. The most responsive. Whatever your niche is,— own it. Don’t dilute your focus trying to be everything to everyone. 

Eleven years in, this industry still challenges me every day. But it also keeps rewarding those who stay focused, flexible, and clear about what they bring to the table. 

If you’re building a new cannabis business in Illinois — or anywhere else right now — I’d love to hear how you’re approaching it. 

Chase Towery has been the COO at Cultivera since 2016 and is an emerging thought leader on cannabis traceability work flows to reduce friction throughout the cannabis supply chain using software and technology. Since 2014, he has been at the forefront of Cannabis operations management and has consulted for hundreds of Cannabis operators including many of the largest multi-state operators in the United States. Find him on LinkedIn.