Thinking of starting a new business? For many, a cannabis business seems like a great industry. And it’s hard to ignore the statistics; sales are anticipated to top $51 billion by 2025.
Whether you open up a dispensary, or create a new product line, your best chance at success is to craft a business plan from the start to guide you on your journey. Like other business niches, going broad often leads to failure. In an industry with so much potential, getting lost in the crowd is easy.
Where do you start?
Define your niche
What’s bringing you into this business? What are your goals and aspirations? Most start with a desire in mind – maybe creating a specific product. The key here is to get clear with your ideas and your audience. Who are they, and what do they want?
Successful niches now focus on creating products and businesses around specific target markets. Consider designing CBD products for stress relief, or specifically for athletes. This gives a company an edge in the way they approach the market.
Create an ideal customer profile
A winning idea and a target audience go hand in hand. Too many businesses fail because they create products they love, without considering what their audience will use first. If you have clients already, you can ask them what they love about your product line, and what they would want more of. If not, you can research and find out what they need and will buy. The more you understand your customers, the easier it will be to design products they fall in love with.
Create your plan
A business isn’t just the parts you enjoy; it includes every aspect of keeping the company moving forward. From taking out the trash to paying taxes, you’ll have to wear all hats from time to time.
With a business plan in place, you can plan out the details of your growth. Think about employees, locations, even future growth. Plans help you reach out and connect with partners who can help you grow, while staying safe and secure as regulations are added and changed.
Know the rules
Every business must contend with legality. With a cannabis business, it’s even more critical to understand and follow laws, rules, and regulations. They are often complex and confusing, and frequently change as new states come on board.
Medical requirements are even more comprehensive with HIPAA guidelines. If you don’t ensure you’ve met all the rules, you may be assessed hefty fines, or possibly shut down. To stay on top of all the changes, partnering up with a team for assistance is almost always the best way to stay in compliance.
Proactive or reactive
Businesses live in either a proactive or reactive state. Proactive allows you to think and plan out each phase of operations. Reactive responds to things as they happen, and almost always moves through each day, putting out fires and dealing with problems.
How you create your cannabis business is entirely up to you. But if you’re thinking long-term, growth, and stability, proactive planning wins every time.
It gives you the tools you’ll need to anticipate things before they happen, and change based on your daily needs.
For IT Strategy, Security and Compliance, or Help Desk Services, reach out to us at Cannabis Technology Partners 360-450-4759.