Did you know that the cannabis market is projected to be worth $51 billion this year and $102 billion by 2028? Talk about doubling your money! Don’t get stuck sitting on the sidelines while you watch everyone else living out your dream of creating a lucrative cannabis business.
The cannabis industry is booming. (That’s no secret!) With legalization continuing to spread and societal attitudes shifting, there has never been a better time to get into the cannabis business. However, like any industry, success doesn’t come easily. To help you get a leg up, here are nine secrets to succeeding in the world of cannabis business:
- Focus on compliance. We know compliance and regulations aren’t fun for anyone, as they’re some of the biggest hurdles in the cannabis industry. From obtaining licenses to following stringent rules around packaging and labeling, running a compliant business should be one of your top priorities.This is definitely something you don’t want to tackle alone! You’ll want to work closely with lawyers and advisors to ensure you meet all local and state regulations. Stay up to date on the latest requirements and have an operations plan to pivot as regulations change, because they likely will. Document, document, document everything….did we mention to document?
- Create connections. The cannabis industry is still tightly knit. Attend conferences and events to build relationships with other growers, dispensary owners, suppliers and more. Go where the people are!A strong network can help provide mentorship, referrals and opportunities. To gain a strong network within the industry, you can join cannabis business associations, reach out to people you want to know, and nurture any connections you make. These connections may just bring your business more opportunities, and vice versa!
- Find your niche. We know – easier said than done. But rather than jumping straight into growing or retail, look for unfilled niches. Opportunity awaits in education, quality control testing, cannabis tourism, real estate, financial services and more. (MSO specializes in cannabis real estate – reach out to us!)Find a gap you can uniquely fill by researching target markets thoroughly to identify underserved segments of the industry. Offer something specialized that competitors don’t provide. This can be a specialty product or an experience!
- Use high-quality ingredients. Branding is everything in cannabis. Consumers are actually willing to pay more for organic, sustainably grown cannabis free of pesticides and additives. A reputation for premium quality can boost profit margins!This means you should only partner with suppliers who share your same high-quality standards and can provide consistency. Invest in top-tier equipment and stringent processes for growing, extracting and preparing products, and educate consumers on what makes your products premium quality.
- Focus on the experience. Today’s cannabis consumers don’t just want good product, they also want an experience! A unique and engaging experience can make patrons come back again and again. Creating an inviting retail space, offering education, and promoting wellness sets you apart.The best brands engage all the senses. Curate products and develop engaging content tailored specifically to your target customers. Train staff to provide exceptional service and expert guidance. Build a sense of community via events, loyalty programs and social media.
- Hire the right talent. As cannabis becomes more mainstream, you can attract experienced employees. Bringing on experts in finance, operations, marketing, and compliance gives you an edge and ensures your biz is running at its best.In order to attract the best of the best out there, you can offer attractive benefits to build a talented team. Look beyond just skills to hire those aligned with your mission and culture. Foster internal talent and leadership pipelines, and incentivize employees through performance metrics and revenue sharing opportunities.
- Be creative with marketing. Full stop – marketing cannabis comes with restrictions. Master creative (yet compliant) tactics like partnering with nonprofits, event sponsorships, loyalty programs, and search marketing. Build an email list and engage on social media.To gain an edge above competitors, you can also experiment with innovative approaches like content creation and micro-influencers. Prioritize organic reach and word-of-mouth over paid advertising. Focus on value-driven messaging that resonates with your audience. Track performance data to double down on what works.
- Invest in security. Everyone wants a piece of the green! With cannabis still being a valuable cash crop, investing in robust security measures like cameras, alarms, and safes will you protect your assets. Hire experienced security personnel and conduct regular audits of your security protocols. Don’t overlook cybersecurity! Put protections in place to safeguard critical business data, and work with a trusted MSSP.
- Prepare for rapid scaling. The cannabis industry grows rapidly (pun intended), so be ready to scale up your production capabilities and staffing to meet increasing demand! Have expansion plans when you first start and funding sources in place so you can move quickly when the time comes. Build flexibility into your operations and facilities to allow for your dream of scaling!
Bottom Line
The world of cannabis business provides huge opportunities and unique challenges. By following these nine strategies, you can position yourself for success while avoiding common mistakes. From building connections to creating a top-notch brand, you can lay the groundwork for a thriving cannabis enterprise. With passion and persistence, you can turn your love of cannabis into a prosperous and meaningful career. The Green Rush awaits—now go and seize the opportunity!
To step into the world of cannabis business and make sure you’re ready and making the right choice, access expert cannabis business consulting here: https://msollc.com/consulting/.
