Starting a cannabis business? 4 questions to ask
There is unparalleled growth in the marijuana industry over the last few years. The business has been growing exponentially and a lot of places are now decriminalizing the use of recreational and medical cannabis. This is a great investment option and even a great avenue if you are thinking of opening a new business. Sales have grown by more than 30% over the last few years and the growth is showing no signs of stopping. It is important to ask yourself a few questions before you enter this market. There are quite a few loopholes and rules that one needs to deal with in this industry, which is why you should be sure before you start making your business plan.
How to pick the right locale for my business?
This question might seem arbitrary, but it is quite important in this industry. Although most states have legalized the cannabis business, it is not actually that easy. If you take the example of California, only a third of Californian cities allow medical marijuana business in their area. Even places where it is legal, there are city legislation rules that make it hard for you to obtain a license. It is important to research thoroughly and understand the local and state laws so you can choose the best place for your business. These are all critical in your business operations and licensing.
How do I make operations easier for myself?
As with any business, it is important to ensure smooth daily operations in your cannabis business as well. This can only be done when we automate the tasks of our daily use in order to free up our employees for more pressing matters. For example, why make your employee take inventory manually when you can use a dispensary inventory management system to do this job? Technology has advanced quite a lot in the past few years and has made business operations quite easy to handle as compared to before.
How do I build my team?
It is very crucial to try and establish the vision that you have for your business. It is even more important to share that vision with your employees and to create shared goals. Try to figure out what areas do you lack the most, and then try to hire people who can do the things that you can’t. Try to hire the right talent at the right time. For example, there should be an urgency in hiring your support operations as it is crucial to the daily runnings of your business. You can hire a social media marketing team at a later stage since it is not so pressing.
How do I figure out my target market?
Your target audience will be the demographic that is most likely to be interested in your cannabis products. Acquiring new customers is not a piece of cake. This requires intensive research about your target audience in order to know what they want the most. Once you actually start developing your customer base, you have to work on creating loyalty as well.
It is very important to ask these pressing questions before you get into the cannabis industry. Use this list to help you determine the best kind of cannabis business for you.
