Have you thought about starting your own cannabis business? According to Thomas Koulopoulos from Inc., there has never been a better time than now. However, this is a big step and the task can seem daunting. It’s important to be well prepared and research everything you can beforehand. From developing your message to having a passion for your work, each factor is just as important as the last. Here are five things you should do before starting a cannabis business.
1. Develop a Powerful Message
Developing a powerful message is one of the first tasks in starting any business, including in the cannabis industry. Your message is what brings value to what you do. You need to have a plan and a way to pitch it to the market that makes them believe and trust in you. It’s important to draw people into what you are trying to spread so that you won’t fail. Make your message a concise and compelling one.
2. Start Small & Grow
Don’t dive into everything headfirst and get overwhelmed. It’s good to start out small, gain traction, and earn some experience along the way. Then, you can set your sights on expansion. This will make it easier in the long run while you and your cannabis business can grow alongside each other. If possible, self-fund your business idea and then go for funding when you can create a growth story.
3. Write a Business Plan
To lessen your stress, you want to feel almost over-prepared. Entering the cannabis industry isn’t an easy feat, so you need to have a plan for success. A lot can be learned from the industry in 2019 to help people going forward this year. A well-written business plan lays everything out on paper. It also helps ensure you’re taken seriously when you seek funding or apply for a cannabis business license.
4. Focus on the Customer & Fully Understand the Market
Don’t lose focus on what is most important: the customer. These are the people that will keep you in business down the road. Understand the market you’re serving and your customers’ needs so that you can nail the product every time. This will create a market for your business and, if you do it right, you will also gain loyalty from your customers.
5. Create a Budget & Financial Projections
You can’t start any kind of business without money and the cannabis business is no different. For example, licensing fees and application fees can be thousands of dollars. You’ll need to make a budget for things like rental/leasing costs, licensing costs, employee salaries and benefits, security, utilities, supplies, and anything else you’ll need to pay for. You need to be prepared for all of these payments and fees so that you can come out on top.
6. Maintain a Strong Work-Life Balance
Make a plan of how you will be productive when you start your cannabis business. Many entrepreneurs spend 12 to 13 hours a day working on their business. As time goes on, this will cause you to burn out and become unproductive in something you used to love. If you need help, here are some apps you can use to keep you on track.
7. Build Your Team
It might seem too early to think of employees, but you may need to bring in partners, investors, and key employees to help you get funding and a cannabis business license. The people that review your license application also like to see that you have a solid team with industry experience. You want to have highly-skilled partners in this diverse industry. Be prepared to spend some time finding the right people.
8. Have Passion for What You’re Doing
This may be the most important thing you need to know. Starting a cannabis business is a big step and will take up a lot of your time just to get started. You have to love what you do and find passion in it every single day. This is the only thing that will make your business a success. If you don’t love it, how will anyone else?
9. Secure Property
Many states require that cannabis business license applicants already have real estate secured for their businesses. That means that not only do you need to find a property that meets the licensing requirements in your state, you must get approval from the owner to use the property for a cannabis business. You’ll also need to get approval from the municipality where the property is located to use it for cannabis business operations.
10. Contact a Cannabis Consultant
The cannabis industry is highly regulated and the application process is extremely competitive. For your best chance at success, you need a cannabis expert in your corner to guide you. If you’re looking for a cannabis consultant, Canna Business Services has helped clients from over 12 states and Canada with our world-class service to help them gain their success in their business industry.
It’s extremely important to keep these things in mind when you start planning. Write things down, come up with something great, schedule everything out, and, when everything comes together, you’ll be sure to crush it. Starting a cannabis business can be scary, but it can also be a very rewarding and exciting journey to allow yourself to take.