Photo Credit: Courtesy of Perfect Union
Two executives from Perfect Union stepped onto a Las Vegas stage Tuesday morning and delivered what the cannabis industry needed to hear. Chelsea Haskins and Angelica Sanchez, representing one of California's top five dispensary chains, addressed a packed room at MJBizCon about the unglamorous realities that determine whether cannabis startups survive or collapse. Their panel, "Launching Legally: Licensing, Compliance, and Capital for Cannabis Startups," kicked off the weeklong conference by tackling the regulatory maze that has crushed countless operators who underestimated what it takes to build legitimate businesses in a federally prohibited industry.
MJBizCon, North America's leading cannabis business conference, runs December 2nd through 5th at the Las Vegas Convention Center. The event draws thousands of industry professionals each year, but this particular session at 9:50 a.m. PT Tuesday attracted attention because Haskins and Sanchez represent a company that has actually figured out how to grow amid chaos. Perfect Union operates nine locations across California, including stores in Sacramento, San Diego, Napa, and Morro Bay. The company just opened its newest San Diego location in the fourth quarter of this year while posting impressive year-over-year growth metrics.
Why Compliance Matters More Than Product
The cannabis industry operates under a paradox. Dozens of states have legalized recreational and medical marijuana, yet federal prohibition remains intact. This creates a regulatory environment where businesses must navigate conflicting local, state, and federal requirements while competing against an illicit market that ignores those rules entirely. Legal operators face the 280E tax provision, which prevents them from deducting ordinary business expenses because cannabis remains a Schedule I controlled substance. Banking access stays limited. Interstate commerce doesn't exist. One compliance mistake can shut down a business permanently.
Haskins serves as VP of Licensing and Legal Strategy for MWG Holdings, the parent company of Perfect Union. Her work involves understanding how to win competitive licensing processes where dozens of applicants compete for limited permits. Sanchez, as VP of Government Affairs and Compliance, ensures Perfect Union's operations remain audit-ready as regulations constantly evolve. Both women have built reputations for their policy insights and advocacy work in advancing California's cannabis sector.
Their MJBizCon panel offered emerging operators a framework for avoiding common pitfalls. The discussion covered how to navigate local and state licensing requirements, develop compliant business plans that regulators will approve, and secure capital in an industry where traditional funding remains scarce. These fundamentals determine success more than product quality or branding ever will. A dispensary with exceptional flower selections means nothing if its licensing application gets rejected or its compliance failures trigger enforcement action.
Perfect Union's growth demonstrates the payoff of treating compliance as core strategy rather than administrative burden. The company recorded a 32.2% year-over-year increase in transaction count during the first half of 2025, along with a 26.7% revenue increase. Those numbers stand out in a California market that has struggled recently. Legal cannabis sales across the state have faced pressure from high taxes, regulatory costs, and persistent illicit competition. Operators who prioritize compliance, transparency, and strategic discipline position themselves to capture market share as weaker competitors fold.
Building for the Long Game
MWG Holdings, founded in 2017, operates ten retail locations total, including nine Perfect Union stores and one Wild Seed Wellness location. The company achieved cash flow positivity while many competitors burn through capital. Management has raised millions in funding by demonstrating operational excellence and regulatory adherence. The company's portfolio features top brands like Blazy, 5G Pop, Cap City, 530 Grower, and Shake That. Perfect Union stores consistently win recognition for their award-winning product selection and community-driven approach.
The company also publishes smish., a print magazine available at all retail locations and online. This content strategy helps Perfect Union build deeper customer relationships while educating consumers about cannabis culture, product innovations, and industry developments.
The MJBizCon panel arrives at a pivotal moment for cannabis policy. Federal rescheduling discussions continue, with many industry observers predicting marijuana could move from Schedule I to Schedule III sometime in 2025. That change would eliminate the 280E tax burden, dramatically improving profitability for legal operators. But uncertainty remains about timing and implementation details. Meanwhile, state-level markets keep maturing, creating both opportunities and challenges for established players and newcomers alike.
Haskins and Sanchez brought practical insights shaped by years of experience building profitable cannabis businesses. Their message emphasized preparation, structure, and precision in approaching licensing competitions. They stressed that growth in heavily regulated markets depends on treating compliance as a competitive advantage rather than an obstacle. Building regulator-ready business plans and making strategic decisions early sets companies up to win rather than scramble later when problems surface.
The panel reflected broader themes that will dominate conversations throughout MJBizCon this week. Attendees want actionable guidance on navigating an industry that remains complicated, expensive, and risky despite growing consumer acceptance and expanding legal markets. Perfect Union's executives offered exactly that by sharing frameworks developed through actual implementation rather than theoretical speculation.
California remains the largest legal cannabis market in the nation, generating approximately $5.1 billion in sales during 2023. Yet volatility persists across the sector. High taxes, regulatory complexity, and illicit competition create constant pressure. Federal prohibition continues limiting banking access, capital availability, and operational flexibility. Operators must excel at compliance, customer experience, and financial management simultaneously.
Perfect Union has demonstrated that combination is achievable. The company's expansion into San Diego and sustained sales growth prove that disciplined operators can thrive even in challenging market conditions. By bringing their expertise to MJBizCon's opening day programming, Haskins and Sanchez helped set the tone for serious conversations about what actually works in cannabis business development. Their panel reminded attendees that success isn't accidental. It requires understanding regulations deeply, respecting compliance requirements rigorously, and building businesses that can withstand scrutiny while delivering value to customers and communities.