In recent years the marijuana industry has started to boom and as a result, everyone wants a piece of the cake. Many people focus on the potential and brush over the risks. The marijuana industry is not as easy to infiltrate as it might seem because you will be venturing out into uncharted waters if you want to get into the heart of the green rush. If you can dive in confidently and with a good strategy then you will discover that there are plenty of opportunities within this industry and success is very attainable. There are many examples of businesses that are doing well, such as the Daily High Club, so you could always look to these sites for inspiration. Some hazards that you will need to be on the lookout for because your ship can easily sink so if you recently started a marijuana business or are wanting to establish a business within this industry, here are a few tips that you should keep in mind to improve your business or potential business.
Look at banking options
Starting a business requires a great deal of start-up capital because your expenses will be high before you even open your business doors. Getting your license alone is a costly process and you still need to account for registering your business name, buying products, advertising, and branding, etc. Many entrepreneurs cannot afford start-up capital out of their own pockets so naturally, they will look to the bank to assist with this. That might work in other industries however in the cannabis industry, banks do not want to get involved because cannabis is still considered illegal under federal law. To generate capital, you will need to approach private investors or you must save.
Sell a variety of products
To elevate your business and become a real player in the game, you should focus on a wide variety of products instead of specializing in one thing. Focus on the different types of marijuana, different strains as well as different consumption methods. There has been massive innovation within the cannabis community and we now have a wide variety of consumption methods available as opposed to the traditional joint and edibles on occasion. Today you can consume via the following methods:
- Dry herb vaporizers
- Dab rigs
- Capsules and pills
You can have fun exploring different products which even include alcoholic beverages which are guaranteed to be successful because people in society typically love to consume alcohol recreationally and the alcohol industry is dominant in the global market. Going down this route will require more permits and licenses however it can be worth the investment.
A business that does not market is a business that is planning to fail. Marketing is how you get the word out about your business and let your business be known to your audience. You cannot use traditional marketing when you’re running a cannabis business because federal law has placed many restrictions on marijuana advertising. You need to be innovative and approach your local community, targeting festivals. You can also run an Instagram page and establish a consistent presence so that you can grow organically and reach a wide audience. The only downside is that you will be unable to use paid ads on Instagram because of federal law.
The cannabis industry is not highly saturated however there is competition so you must ensure that you stand out and become recognizable. The best way to become recognizable is to create a brand personality which will be how your audience can recognize you based on the image that you portray or the lifestyle that you promote. All businesses operate the same way apart from the fact that they market themselves differently. Very important is to sell a lifestyle rather than a product.
Understand your customers
Lastly, understand your customers. Their age, gender, needs, and how much they are willing to spend. All marijuana consumers have their personal needs. Some consume solely for recreational purposes while others are looking to use marijuana medically to heal certain complications. To truly master this, you must research your customers to understand how to best fulfill their needs and wants. This will benefit your business and create a loyal customer base.