Photo: Drew Taylor / Unsplash
From the US to Thailand, the cannabis industry is booming. While that presents plenty of opportunities for savvy entrepreneurs, it also means certain parts of the market are saturated (and getting more waterlogged with competitors by the day).
So, how do you make your mark in this lucrative but competitive industry? From selecting your niche to finding the best workers’ compensation insurance for the cannabis industry, here are our top tips for entrepreneurs looking to launch a canna-business.
1. Research the market
If you’re passionate about cannabis, you may feel that you already understand everything you need to know about your target market. However, this is a mindset that will set you up for failure. No matter how certain you are that you’ve developed a winning business idea, it’s crucial to conduct market research. Doing so may reveal that your audience segment isn’t as large as you thought it was or that your business idea has already been launched by dozens of other entrepreneurs. If this happens, don’t consider it a setback. Instead, it’s crucial information that will help you find the right niche in which to establish your enterprise.
2. Find what sets you apart
To stand out in the already saturated industry, you need to offer something other businesses aren’t providing. That could come in the form of your own strains, new cannabis products, sustainable packaging, or even easy-to-understand education on effective marijuana use. There are countless ways to stand apart, but the one unchanging factor is that you must have a unique selling proposition to differentiate you from competitors.
3. Find investors
Though cannabis has been legalized in many US states, it still hasn’t gained complete acceptance country-wide. So you will likely find that many of the traditional funding avenues aren’t as receptive to you as if you were launching a business in another industry.
Don’t let this put you off. Instead, look for investors willing to fund your budding enterprise (who could resist that pun?). Plenty of people are eager to support the cannabis industry and benefit from the projected returns of this cannabis dispensary.
4. Learn how to pitch effectively
Finding investors is one thing, but if you don’t know how to deliver a compelling pitch, you won’t have a hope of earning their trust. So, take the time to educate yourself on persuasive writing, public speaking, and pitch deck creation.
It may be tempting to throw out massive numbers and tell them your venture could never fail. However, investors value honesty, and they are skilled at picking apart data and projections. So, while you should be confident, you must also be realistic in the figures you present. Let them in on your weak points and where you need help, but show them that you already have a plan for addressing these issues.
5. Tick all the legal boxes
Just a few years ago, canna-businesses in the US were underground enterprises that didn’t worry about things like workers’ compensation insurance. Instead, many hired backpackers and other illegal workers to tend to their crops, help with the harvest, and trim buds.
If you take this same attitude into a modern canna-business, you’ll be in for a world of trouble. So instead, take a diligent approach to ticking all the legal boxes. This means offering fair pay, benefits, and insurance to workers, abiding by state and federal laws, and understanding industry regulations.
Keep these tips in mind as you launch your new enterprise, and you’ll be on your way to a thriving career in the cannabis industry.
