Alright – so today we’ve got the honor of introducing you to Alexia Helgason. We think you’ll enjoy our conversation, we’ve shared it below.
Alexia , appreciate you joining us today. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?
The cannabis industry took off like a rocket ship just a few years ago with the promise of closing down the black market, making cannabis available to the masses and changing outdated perceptions of the plant that was banned for 70+ years, but utilized as medicine for 10,000 years before prohibition. The alcohol industry took a good decade to stabilize after legalization in 1933, and many brands that we enjoy today resulted from a time of turmoil, fear, and demonization. Many investors who jumped into the cannabis sector witnessed their investments tank after it became difficult to become profitable in this burgeoning industry. The reasons vary widely. Many producers overestimated the market demand and cultivated too much. Some overspent on the thought that the market would continue its uphill trajectory, while others thought that growth and expansion overshadowed profitability. High government taxes, including 280E taxation, the lack of access to traditional banking, and the illegal status of the plant federally have put an onerous burden on cannabis businesses. Keeping costs down is another challenge to profitability in cannabis. Not only is it expensive to grow at scale, lab test, package and distribute, cannabis flower is no longer commanding the high prices that it once enjoyed. In the CBD market, increased competition coupled with the lack of regulatory guidance and the proliferation of other cannabinoids have led many companies to exit the business altogether. However, not all is lost! With any new industry, failures and challenges are the norm. The industry will continue to grow and prosper with time, well-managed companies, and the consolidation of those who tried and failed. The rise of cannabis has benefitted from the growth of health and wellness trends, with cannabis being viewed as alternative or natural medicine. Research on the health benefits of cannabis is ongoing for a host of ailments and conditions and people are embracing the positive effects of the plant.
Alexia , before we move on to more of these sorts of questions, can you take some time to bring our readers up to speed on you and what you do?
I am a corporate communications and investor relations professional working for publicly traded companies. Many people scratch their heads when I tell them what I do. In a nutshell, I manage the public listing of a company, liaising with the stock exchanges, market regulators and investors. My goals are to keep investors informed of our business, reporting earnings, ensuring filings are up to date and assisting in capital raising activities. In essence, I act as the corporate representative when it comes to the investor audience, nurturing relationships and liaising with a wide range of stakeholders. In this role, you need to be an effective communicator to stand out in a crowded marketplace. You need excellent writing skills to prepare and disseminate everything from news releases and financial reports to media articles. In addition, there is a PR mandate to secure media coverage and manage the public profile of the company. Reputation management has increasingly become more important in our age of instant news and cleaning up issues that have become public is often a challenge. Take for example a failed technology, a disappointing earnings report, or the closing of a business unit. Managing expectations in a publicly traded company is key to its success. It’s an old adage but one that I live by, “Under promise but over deliver”. I also advocate for complete transparency and timely communication. These are the rules but not all management heed to them. What makes a successful investor program can range from an increase in share price, an oversubscribed financing, to the securing of institutional investment in the stock. But getting company-wide buy in and having management and board aligned and speaking to the same goals and objectives can also be as rewarding.
Have you ever had to pivot?
In business, one needs to remain agile, flexible and open to change as the need to acquire new skills is always necessary. There have been a number of times I’ve had to pivot my skills to apply them to new businesses. I left a 12-year career with an established and stable company to join a brand new start-up. The risk was huge, and looking back, it took a lot of courage to make the jump. After 12 years in the company, I was restless, wanting more responsibility and more money, and the bureaucracy of a large company was wearing me down. My husband had taken a huge risk in leaving his company to become an entrepreneur and the risk had paid off. So, I figured that it was my turn. Working for a start-up taught me to embrace wearing many hats and to be ready to pivot every time the market changes. No longer could I rely on the security of an established business, with clients and revenue streams in place. Building a company from the ground up was difficult, and at the end, the business venture failed due to the 2008 financial crisis. The risk I had undertaken did not pay off. But the experience I gained and lessons I learned, not only about business but about myself have served me well. After the business failed, I again had to pivot my career and look for work in a new industry, but this time, I was armed with the tools of adaptability, resilience, entrepreneurship, and a newfound drive. A valuable lesson from this experience also left me with the understanding of my own worth and the value of what I bring to the table. This happened many years ago, and today I am faced with the same challenge of having to pivot once again. I am older – and wiser! and ready to take on new challenges as I continue to grow professionally and personally.
How do you keep your team’s morale high?
Communication, communication, communication! In my career, I have worked with many CEOs who have been brilliant at their businesses but have been terrible at managing teams. One common theme is their unwillingness to communicate. The lack of communication permeates a company from the top down and teaches others to stay in silos, when sharing information is key to a productive workplace. Lack of communication often leads to low morale as it gives way to the rumor mill. When layoffs are happening, good communication between management and workers can often ease anxiety, prepare those who are being laid off and ensure that those who remain stay committed to the organization.
Managing a team includes establishing clear and realistic goals, and helping the team stay on track in order to accomplish those goals. Encouraging employees to feel free to voice their issues and opinions also foments a happy workplace. Everyone appreciates being heard without fear of retribution. Maintaining high morale also comes from acknowledging and rewarding employees who go over and above. In addition to providing incentives for growth, treating employees with respect, empathy and understanding goes a long way in motivating teams and maintaining high morale.
Contact Info:
- Instagram: @alexiahelgason
- Facebook: https://www.facebook.com/alexia.helgason/
- Linkedin: https://www.linkedin.com/in/alexia-helgason-516b417/