Naturally, starting and sustaining a business is challenging. Most businesses fail in the first few years of their operations. However, entrepreneurs who succeed do it because of their proper business management skills and vast knowledge of the market.
This is also true for the cannabis market. As an entrepreneur, you should demonstrate an extensive understanding of your business’s daily operations and the possible positive operational results to investors. This increases the chances of your cannabis business to succeed in the long haul.
The legal cannabis industry might increase exponentially soon. This growth is a result of the availability of more weed products such as CBD and shatter. In North America, the projection of the legal spending on weed might reach 57 billion dollars by 2027.
Statista also projects the market value of the cannabis industry in the USA to reach 24 billion dollars by 2025. The marijuana sector is growing. This presents a unique opportunity for weed entrepreneurs to scale, grow, and earn more profits from the industry.
Even with this growth, the adult recreational marijuana market is inhibited by the U.N. Some key players in the cannabis sector, like BDS and Arcview, believe the U.N.’s attitude towards legal marijuana will only change if the U.S. federal laws legitimize weed. This move will significantly increase the market value of the cannabis sector.
How do you position yourself to be a successful entrepreneur in the cannabis market with all this growth potential? Here are some tips that you should follow to increase your edge in the cannabis market.
1. Excellent Management
To have more market share in the lucrative cannabis market, you need to be aware of the things you do, the reason for doing it, and your approach.
You also need to have a clear idea of the desired results of your business actions. This begins by coming up with a clear vision for your cannabis business and settling on a forward-thinking mission statement that will guide decision making within your business. Doing this defines the culture of the company.
The role of coming up with a clear vision and mission statement for the company is your responsibility as the business owner. It would help if you elaborated on the vision statement of your business.
The statement should point out why your business exists in the first place. The business’ vision should also define the company’s driving purpose, the people you wish to impact, and the market share your company would like to own.
With a clear vision statement of the business, you should create a well-defined mission statement that will guide its day-to-day activities.
Each person working or dealing with the company should embody the mission statement of your business. This will lead to operation principles, which guide the culture and daily business to meet the goals, objectives, and necessary tasks for your business to excel.
When you hold your business to account concerning your vision, mission, and long-term view in mind, it is essential to position your weed business for success. You should realize a few things you should keep in mind to be successful in the cannabis market.
2. Inconveniencing Laws and Competition from Other Markets
Marijuana and its products were initially classified as illegal substances with various regulations to contain their use and distribution.
This was in effect in most countries in the world, including the U.S. and Canada. Therefore, it was crucial for the cannabis business operating in any country to abide by the rules governing the sector in their profitable weed business strategy.
This was not the case, as many companies did not meet these laws. As such, they had to shut down temporarily to adjust their business revenue model accordingly. However, some businesses had to close permanently.
Besides navigating weed laws, you have to contend with competition from the alcohol market and the illegal marijuana market. According to Statistics Canada, three-quarters of Canadian cannabis users turn to the unlawful weed market for their product.
Additionally, the alcohol industry is set to be impacted significantly by the legalization of weed. With its legalization, more and more people are turning to buy weed online in Canada for various purposes.
Medical weed alone is estimated to lower monthly sales of alcohol by fifteen percent. Naturally, the alcohol sector has shown a defensive response by giving players in the cannabis market a run for their money through tough competition.
3. Focus on Your Customer
You need to understand your customer base pretty well. Begin by learning about the people who are interested in your goods and services.
Strive to learn their social background and their level of education. Gather as much information about your clients. This helps in targeted marketing campaigns.
On the same note, you need to keep a close eye on your customers as a growth strategy for your business. This will also help you manage your customers during difficult market situations.
Come up with a feedback system that allows you to get direct responses from your clients. This will help you understand where the client’s interest lies in your products and where to invest more cash. It will allow you to tailor-make the right products to suit client needs.
The market is dynamic. Therefore, you have to change your marketing strategies as time changes. This allows you to engage correctly with your client base and grow appropriately in the weed sector.
It also helps to invest in educating your clients about your products. But first, you need to invest in what makes your products unique. You should then provide value to your clients.
Educate your customers each time you release a new product. It would be best to encourage them to try your products and share them with their friends.
Typically, weed lovers adopt new ideas quickly. This is a blessing and a curse all in one. If you do not create a brand narrative around your product that appeals to your clients, you risk losing their loyalty.
However, if everything is done right, your clients are likely to become loyal to your brand.
These tips will give you an edge in the cannabis market and increase your chances of making huge amounts from the weed market. Apart from these tips, you can also be successful in the marijuana market by:
i). Researching Your Target Cannabis Market
Researching your target market helps you carve a niche in the cannabis sector. This allows you to build a reputation and increase your profits.
There are different niches in the cannabis market, including medicinal and recreational weed. Get to understand your specific niche’s supply and demand by reading the latest weed market trends and news.
It would be best if you also went through weed market reports to have a clear idea of what to expect in the future. This information will help you position yourself well in the market.
ii). Do What You Know
Identify a sector in the cannabis business that you are good at and invest your time and resources in it. Do not put your money in a weed dispensary when you have experience in running a cannabis cultivation center. Doing what you know greatly improves your odds of success.
You can also enroll in online weed courses. This education will give you an in-depth understanding of the cannabis industry.
While the cannabis sector shows a lot of promise, your chances of success in the industry increase when you take the right steps to establish a good business. These tips will help you set up a successful cannabis enterprise.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.