Passing the Torch: Business, Community, and the Cost of Success

New Mexico has always been a place where communities are stitched together by their local small businesses. These are the spots where families meet, generations share the same experiences, and memories are made. However, running any business here is not for the faint of heart.

For all the natural beauty we’re surrounded by, there’s no escaping the gritty realities of everyday life—crime, theft, drugs. If people aren’t trying to break in, they’re already inside, filling their pockets. But in spite of that, if you are successful, those 80hr weeks still come at a premium cost that surpasses the bank account; your time, your essence, and your family.

What is the true cost of success?

Becoming Mecca

Every neighborhood has a landmark where families can remember fond memories of gathering. They center us, remind us where we are. One of those landmarks was the Model Pharmacy in Albuquerque, a neighborhood staple off Lomas and Monte Vista that served the community for 34 years before closing its doors in 2020.

The Model Pharmacy was more than just a place to pick up prescriptions—it was a spot where neighbors caught up over a snack, where regulars were greeted by name. It represented the old-school charm that held communities together. Its closure left a void that many felt, a reminder that even cherished institutions can’t escape the pressures of time and change.

But today, that same building has been given a new lease on life. In a turn that reflects the evolving face of New Mexico’s local businesses, it’s now home to Verdes Dispensary. Where families once gathered for fountain drinks at the pharmacy’s counter, they now come for something different—cannabis products in a legal and growing industry that’s shaping the future of local commerce.

The shift from a beloved pharmacy to a cannabis dispensary is a sign of the times. New Mexico’s small business landscape is changing, and cannabis is becoming a bigger part of that picture. Verdes Dispensary might not have the same old-school charm as the Model Pharmacy, but in its own way, it’s filling a need, becoming a new kind of gathering place in the community.

It’s a reminder that while businesses may come and go, the heart of New Mexico’s communities remains rooted in local spaces—places where people connect, share stories, and support each other, even if those places look a little different now.

Cost to be the Boss

Running a small business for 20+ years is often a labor of love, driven by a single person’s vision and dedication. This type of leadership is the glue that keeps these businesses alive through the ups and downs. But the commitment comes at a personal cost. Many business owners spend more time catering to customers than with their own families, particularly their kids. Day in and day out, they’re grinding to keep the doors open, sacrificing personal time and sometimes missing out on important family moments.

When it’s time to step back and think about retirement, it can go one of two ways. If you’ve worked hard enough, you might have sent your kid through school, giving them the chance for opportunities you never had. In the best-case scenario, they’ll want to take over the family business and maybe even take it to the next level. That’s the dream—passing on your legacy and watching it grow.

But more often than not, kids have a different perspective. They remember the long hours, the sacrifices, and the stress that came with running the business. Many children of business owners want to forge their own path, uninterested in inheriting the grind that consumed so much of their parents’ lives. This leaves many business owners at a crossroads—either preparing to sell the business or face the harsh reality of winding it down, often with no clear succession plan in place.

The truth is, succession planning isn’t just a strategy—it’s a necessity for long-term success. Whether the business gets passed down, sold, or closed, having a plan ensures that the hard work of those 20+ years doesn’t just disappear when the owner decides it’s time to step back.

Passing the Torch

The truth is, without a succession plan, things fall apart—fast. You can have the best product, the most loyal customers, but if you’re not thinking about what happens next, you’re walking a tightrope over disaster.

Here’s what happens when you don’t have a plan:

• You Lose Control: Let’s say something happens tomorrow—you get sick, or you just can’t handle the daily grind anymore. Without a plan, your business could fall into the wrong hands. Maybe a partner takes over and runs it into the ground. Maybe the government steps in because your licenses aren’t transferred properly. Either way, you lose control of everything you’ve built.

• Licensing Hell: Cannabis is a different beast. You can’t just hand your business over to someone else like a mom-and-pop shop. Licenses don’t automatically transfer. If you don’t have a succession plan, your successor might find themselves buried in paperwork and regulatory red tape. Your business could be shut down while they try to figure out how to get licensed, or worse, you could lose your licenses altogether.

• No Financial Cushion: Your business is your livelihood, right? Without a plan, selling it or passing it down could end up being a financial disaster. Maybe you think you can sell it for a quick payday, but without proper valuation or legal documents, you could end up with pennies on the dollar. And if the market turns? Good luck.

• Employee Exodus: The people who’ve stood by you, who’ve helped build the business, they see what’s happening. If there’s no clear path forward, they’ll jump ship. And once they’re gone, you’re left with nothing but empty shelves and a dying brand.

When Things Go Good, Plan for Bad

The key to succession planning isn’t waiting for things to go bad—it’s preparing while things are still good. Let’s say you’re expanding, opening new locations, building an empire. That’s when you need to start thinking about who takes over when you’re done. You don’t want to realize it too late, when you’re staring down a decision between missing another birthday or losing control of your company.

• Choose a Successor: This might be the hardest part. Who do you trust to take over? It might be a family member, a business partner, or a key employee. Start involving them in the business now. Let them learn the ropes while you’re still around to guide them. You can’t just throw someone into the deep end and expect them to swim.

• Prepare for the Legal Stuff: Work with a lawyer who knows cannabis. This industry is built on regulations, and the last thing you need is a legal battle over licenses. Make sure your successor is prepared to take over legally, with the right paperwork in place to keep the business running without a hitch.

• Train Your Team: You didn’t build this business alone, and you won’t leave it that way either. Your team needs to know the plan. Train them, empower them, and give them a reason to stay. That way, when the time comes, they’re not scrambling to figure out who’s in charge—they already know.

When Things Go Bad, Have an Exit

Look, sometimes things don’t go as planned. Maybe you get sick, maybe the market tanks, maybe you just wake up one day and realize you can’t do it anymore. That’s life. But without a succession plan, it’s game over.

• Sell It, Before It’s Too Late: If you can’t keep up with the competition, selling might be your best option. But you can’t just throw a For Sale sign in the window and hope for the best. You need a plan. Get your finances in order, work with a broker who knows cannabis, and make sure your business is valued properly. Don’t sell yourself short.

• Liquidate and Move On: Sometimes, the best move is to cut your losses and move on. It’s not glamorous, but it’s real. If you don’t have a successor, and the market’s too tough, liquidation might be the only way out. Sell off the assets, pay your debts, and walk away with whatever you can.

The Bottom Line

Running a cannabis business is a ride, no doubt about it. It’s highs and lows, hustle and grind. But at some point, every owner faces the same question: what happens when I’m done?

The answer depends on you. If you plan ahead, you’ll walk away on your terms. Without a plan, you’re rolling the dice, and the odds aren’t in your favor. Whether things are good or bad, whether you’re at the top of your game or ready to step down, succession planning is the key to making sure your business—your legacy—lives on. Because when the time comes, and it always does, you want to make sure you’re passing the joint, not putting it out.