The cannabis business is booming, and it shows no signs of slowing down anytime soon. According to recent statistics, 12% of all Americans are active marijuana users, cannabis sales skyrocketing a whopping 67% in 2020 alone. If you are living in a state where cannabis has been legalized or if you are pursuing the path of legalization, there are a few steps to keep in mind on your journey to launching your very own cannabis business.
Create a Plan
Launching a successful cannabis business is not likely without a thoughtful plan and business model in mind. Before you can begin selling cannabis, you will need to research the laws in your surrounding area as well as any permits, licensing, and certification you will require in order to lawfully operate your new business. When you are in the brainstorming process of creating a new cannabis business, ask yourself the following questions:
- What type of cannabis business am I planning to run? Am I intending to cultivate and grow products, sell products, or both?
- Where will I be selling my cannabis? Do I require a large warehouse and storefront, or a small boutique shop?
- Do I have a location to store my inventory?
- Are there special permits, licenses, and certifications that I require before I am able to launch my business?
- How do I go about applying for permits and licensing for my cannabis business based on my location?
- Is there a limit to the number of cannabis businesses that are allowed in my area or region? If so, what is my backup location and/or plan for my cannabis business if I am not permitted to launch in my desired locale?
Research Your Competition
Understanding your local, online, and international brand competition is essential as a cannabis business owner. With a highly competitive and saturated market, using third party risk management: new tools like third party risk management software can help tremendously when it comes to determining the right course of action for any business-related decision you make. Knowing the ins and outs of your local competition can help you to stay ahead in terms of pricing, product brands, and even sales and promotions you launch. Understanding your competition in any industry is imperative, especially if you are entering a highly competitive and saturated market.
Permits and Licensing
Before you can begin selling cannabis or even promoting your own cannabis products, you will require additional permits, licensing, and in some cases, marijuana certifications. Research the laws surrounding cannabis in your current state and in the region you intend to apply for your cannabis license. While some regions may be more lenient than others, failing to provide licensing and certification will not only result in the loss of your cannabis business but may also result in extensive fees and fines.
Find Suppliers
Knowing how to use supplier management tools and technology is essential when launching a cannabis business, especially if you are not growing and/or producing your own product to sell yourself. Working with the right suppliers at all times helps to minimize the cost of your products while simultaneously maintaining positive relationships with those in the market and industry. Use online platforms like https://weedmaps.com/dispensaries/in/united-states/illinois to locate various brands in your region.
Managing Your Cannabis Business
Managing your cannabis business is equally as important as launching one with the right plan and audience in mind. Without effective management and accounting skills, navigating the world of cannabis will quickly become overwhelming. Using dependable business spend management solutions is one way to gain peace of mind while knowing your business and the future of your cannabis brand are in the right hands. Using spend management solutions to track income, spending, and investments can provide you with an overview of how your business is performing at all times.
Tracking Your Sales and Success
With any business, tracking your sales and the revenue you generate is an integral part of each day. Without the ability to track sales, investments, wholesale costs, and current suppliers, it can quickly become confusing and stressful to keep up with the management elements of running your business. Using a cost reduction method found in advanced analytics software, gauge your overall success, profit margins, as well as your best sellers to help improve ROI on future inventory purchases and supplier deals.
With the prediction of a $23 billion dollar industry by the year 2025 in the USA alone, it is no wonder that so many are turning to the cultivation and sale of cannabis today. If you are in the process of building a cannabis brand or launching your very own business, follow the proper steps to prepare and to ensure you are able to keep your cannabis business on track, especially as you grow and expand.
