In today’s fast-paced and ever-changing cannabis industry, businesses need to find creative ways to adapt and grow when challenges arise. Regulations, market trends, and consumer behaviors can completely change overnight.
None of us have a magic crystal ball to predict the future. But by cultivating an antifragile organization, you can ensure your business not only survives the rollercoaster ride of cannabis but thrives.
The concept of antifragility comes from the work of essayist, mathematical statistician, former option trader, risk analyst, and aphorist Nassim Nicholas Taleb. His 2012 book Antifragile: Things That Gain from Disorder looks at problems of randomness, probability, complexity, and uncertainty. In the context of business, an antifragile organization grows stronger in response to challenges, stress, and disruptions —fragile systems degrade, and antifragile systems improve and evolve.
If this sounds a lot like “resiliency” to you, it’s similar, but a step further. Resiliency is about taking actions to withstand the unforeseen and the ability to be nimble and bounce back from a setback. Antifragility leverages adversity and sustains a competitive edge. Errors and volatility aren’t just pushed through and tolerated, they’re fully embraced as drivers of improvement.
At FlowerHire, we’ve seen antifragile companies—they’re the ones who are out there rising to the top because they sustain their competitive edge. These companies have cultures and structures that are flexible and adaptable to industry changes. They learn from failures, leverage uncertainty, and turn crises into opportunities for growth and innovation.
Here’s how to build a company that sustains a competitive edge in the cannabis industry.
1 Embrace change and uncertainty
Why it’s important in the cannabis industry
The cannabis industry is highly regulated and the regulations are always changing and evolving. New markets continue to emerge, current markets continue to change, and consumer preferences evolve. In an industry with constant shifts, organizations that fear change are more likely to fall behind when new challenges— or opportunities! —arise. Embrace all change and uncertainty!
How to do it
Shift your mindset. Start to see change as an opportunity, not a roadblock. Encourage both leaders and employees to stay flexible and find chances to pivot and innovate when faced with a challenge. When disruptions happen, instead of panicking, look for ways to adapt quickly and lead your team forward.
TIP Regularly review your business strategy and integrate systems for finding the opportunity in challenges.
2 Build resilient teams
Why it’s important in the cannabis industry
Cannabis businesses face unique regulatory pressures, market volatility, and competition from both the regulated and unregulated markets. Organizations need resilient teams to navigate these challenges and quickly recover from setbacks—because there will always be setbacks in cannabis! Resilient teams will persevere, learn, and strengthen.
How to do it
Create an environment where employees feel supported, safe, and capable of taking on challenges. Offer employee training and encourage them to problem-solve.
TIP Make sure to recognize efforts and provide feedback, especially during tough times. Employees who feel valued are more likely to stay engaged and resilient.
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3 Foster innovation through adversity
Why it’s important in the cannabis industry:
Cannabis businesses that fail to innovate risk getting left behind. Adversity—whether it’s regulatory changes, market saturation, or supply chain issues— can drive innovation. By building a culture of innovation, you ensure your business stays adaptable and competitive.
How to do it
Encourage a culture of experimentation where all ideas are welcome and risks are okay, even celebrated. Encourage your team to view obstacles as opportunities to innovate. This type of mindset often leads to breakthroughs.
TIP Host monthly brainstorming sessions where employees freely pitch ideas, without fear of judgment. Wild ideas can lead to the best innovations.
4 View failure as a learning opportunity
Why it’s important in the cannabis industry
Failure in the cannabis industry can come with high stakes. But instead of letting these failures derail progress, view them as learning experiences. These lessons will help your business pivot and improve.
How to do it
See failure as a learning opportunity and encourage your team to see it too. Take the time to reflect on projects and challenges. Think about what went wrong, what was learned, and how things can be improved in the future. This will help the team feel comfortable taking risks.
TIP To help everyone learn and grow together, implement a reflective practice of holding meetings after major projects to discuss what worked, what didn’t, and how to improve.
5 Create a long-term vision focused on sustainability
Why it’s important in the cannabis industry
The cannabis market is still maturing. Short-term gains are tempting, but long-term sustainability is key to long-term success. When you create a business that adapts, you’re setting the company up for future growth.
How to do it:
Set clear, long-term goals that align with your company’s mission and core values. Focus on continuous improvement and sustainable growth. Is your business model flexible enough to evolve without losing sight of your mission? The more you can adapt to a changing market, the more you’ll sustain your competitive edge.
TIP Consider ways you can diversify your products or services to reduce risk when change happens.
6 Foster a growth mindset across your organization
Why it’s important in the cannabis industry
A growth mindset is especially valuable in cannabis. New technologies, practices, and market opportunities are regularly arising. Encourage employees to embrace learning. Help employees see how new experiences help them stay ahead of industry changes and ensure long-term competitiveness.
How to do it
Promote a culture that prioritizes learning and development. Encourage employees to learn new skills, take on new challenges, and not fear failure. Instead, see failure as a part of the learning process. When the team believes it can improve and grow, they’ll be more confident and creative in taking on challenges.
TIP Lead by example. You can also invest in professional development opportunities, training, and mentorships. It will pay off long-term in resilience and innovation.
7 Cultivate Trust and Collaboration
Why it’s important in the cannabis industry
Collaboration is essential for success in the cannabis industry. All departments, including compliance, product development, marketing, and sales, need to align to ensure success. Trust among team members is foundational and ensures that everyone works together to solve problems efficiently and effectively.
How to do it
Encourage open and honest communication across the entire organization. Create opportunities for providing feedback, brainstorming, and cross-functional collaboration. Teams are more likely to come together to solve problems when they feel comfortable sharing ideas and concerns.
TIP Hold team-building activities to strengthen relationships and improve communication. The stronger the bond between team members, the more resilient your organization will be.
By implementing these 7 steps, you can transform your company into one that thrives in the face of adversity and rises to the top of the cannabis industry. Being an antifragile organization will give your company the competitive edge needed to stay ahead of market shifts and respond with innovation, even under pressure. Maintain long-term success regardless of what comes your way.
SIDEBAR: You might find this 2023 YouTube interview with author Taleb discussing how to become antifragile to be of interest.
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