The Cultivation CanonTabatabaei Advising
Staffing, Throughput & Financial Failure Modes

How Operations Die on the Balance Sheet

Section 2 covered the agronomic ways a cycle goes to zero. This is the other list — the financial failure modes that sink operations whose plants grew fine: cash burn, price collapse, tax structure, over-leverage, and compliance fines.

10 min read

Earlier in this department you learned the five agronomic killers — mold, mites, EC/pH drift, HVAC failure, HpLVd — each of which can zero a cycle. But plenty of operations grow beautiful flower and still fail, because the balance sheet has its own failure modes. These are less discussed precisely because they're not about growing, and that's exactly why they blindside good growers.

1. Running out of working capital before first revenue

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