3 Essential Secrets That Could Determine Your Success Starting a Business in the Cannabis Industry
Oct 04th, 2018
Today’s cannabis industry faces a long road ahead filled with uncertainty associated to federal and provincial regulation. To make it easier to see what works and what does not, cannabis industry leaders should be taking steps to improve the quality of cannabis products circulating, and improve the efficiency of cannabis businesses, for governments to recreate.
There are three key factors in determining whether starting a business will be successful: your skill set, the competitive landscape, and your location.
Due to the adolescence of the cannabis industry, many people have been flooding in with ample information and resources acquired in previous industries. Hasse advises a budding entrepreneur to take into account that there are still a lot of unmet needs in the industry. This means there is lots of opportunity for growth in starting a business
Hasse states, “…Avoid changing jobs. Instead, change your industry by figuring out how to make your background useful in a new field.” By focusing on what you do best instead of weaknesses, it will be easier to find people interested in the same things and grow within the cannabis field. Often, people think that you must go to an Ivy League school to achieve success in starting a business. The world, however, would be very narrow if the skills from all backgrounds and industries were not applied. Using the skills from other fields to begin starting a business in the cannabis field is the essential point that needs to be taken away.
It is important to also take into consideration the other sectors in the cannabis field. Hasse, suggests doing extensive market research to find out which sub-categories are saturated or not. It is important to consider all the unmet needs still existent in this budding industry. Sometimes it is less about coming up with a new innovative idea and instead about addressing the needs of any business but tailor it to meet the needs of cannabis, specifically.
In addition to the competition, Hasse mentions, you can either pick a location first then determine which business is most likely to succeed there, or vice versa. A rural location is great for people starting a business, one could consider hemp cultivation or servicing the growers. Such a business could provide farmers with the right kinds of nutrients for hemp cultivation, build greenhouses, supply lighting for indoor grows, offer clean energy options, or process the raw material to make plastics, paper, or oils.
Urban areas, on the other hand, would be better suited for a lifestyle-oriented company: a smokers’ lounge, dispensary, or a firm that makes products for cannabis users, such as bongs or pipes. It is important when starting a business that one understands this information when making decisions on where to go next. Keeping in mind where you are currently based will help in deciding what options will make the most financial and logistical sense for a new business venture. To learn more about the source material, visit the Green Entrepreneur website.
Learn how CannJoin’s innovative practices as a cannabis accelerator provides startups with the mentorship and financial support they need. Contact us at info(at)cannjoin.com for more information.