Humboldt Farms is California's leading and trusted source for quality cannabis.
Challenge An established cannabis producer in Northern California, Humboldt Farms was growing — but it wasn’t turning a profit. With little clarity surrounding operational costs and barriers, Humboldt needed to seal the gaps to become cash flow positive.
Where Kings Crest Global Comes In King’s Crest Global was called in to solve the burning question: where was all the money going? By analyzing and restructuring Humboldt Farm’s budgeting and department classing, the KCG team was able to pinpoint exactly which leaks had to be plugged.
Redrawing Humboldt Farms’ entire organizational chart also enabled KCG to reallocate department budgeting resources and alleviate pressure from the operations team. It also gave Humboldt insight into which departments were spending too much for too little ROI. With the entire business plan reassessed, the KCG team also identified an opportunity for Humboldt Farms to make long-term supply agreements to fix and control costs (rather than continue living at the mercy of the market.)
THE RESULTS
+Gross margin growth from 9% to 40%
Within a year, Humboldt Farms saw their gross margins quadruple.
+Reinvented business strategy for positive cash flow
With a new, strategic business approach, Humbodlt could cut unnecessary expenditures and allocate resources to departments for greater efficiency and ROI.
“Saul’s work helped us get to where we are today, and now we’re cash-flow positive on a monthly basis and have four times gross margins from what we did last year. We’re very happy about turning the corner. The biggest concerns we had a year ago are no longer our concerns today.”
Ben Gross
Former CFO, Humboldt Farms
